The Federal Government has introduced a new revenue administration framework that eliminates physical cash handling across all Ministries, Departments and Agencies (MDAs) and mandates a compulsory transition to electronic payment systems.
Under the new compliance regime, MDAs must discontinue the acceptance of cash for government revenue and deploy functional Point of Sale (POS) terminals and other approved electronic channels within a stipulated rollout window.
The policy forms part of a broader effort to tighten transparency, standardise collections and close gaps that have enabled revenue leakages across the public sector.
The directives, issued through a series of Treasury instructions, place full responsibility for enforcement on accounting officers and finance directors.
Institutions are required to integrate their payment interfaces with approved Treasury systems and ensure that all receipts, billing processes and remittances align with national financial management rules.
A key component of the reforms is the prohibition of deductions at the point of collection. MDAs using customised payment platforms or front-end applications are now required to remit gross revenues directly into designated government accounts. Any associated fees for payment service providers must be processed centrally rather than deducted before remittance.
The policy also introduces a unified electronic receipt mechanism to serve as the official acknowledgment for all federal transactions.
The digital receipt will be generated through a Treasury-managed platform and recognised as the sole proof of payment for government revenue, replacing the fragmented system previously used across MDAs.
In addition, all revenue-generating institutions are required to integrate with a new optimisation and monitoring platform designed to provide real-time visibility of collections, automate reconciliation processes and strengthen oversight of accounts held by MDAs.
The system will interface with the Treasury Single Account framework, financial regulators and authorised banking partners.
To support implementation, MDAs must nominate designated officers to oversee integration with the platform and submit full details of all operational accounts, including those denominated in foreign currencies.
The Federal Government has set strict deadlines for compliance and signalled that non-adherence will attract administrative sanctions, including restrictions on access to key Treasury systems.
The revenue overhaul represents one of the most extensive adjustments to federal collection processes in recent years and aligns with the government’s broader objective of strengthening fiscal discipline, improving visibility of public income and accelerating the transition to a fully digital payment environment.