In a landmark shift destined to redefine how Nigerians engage with federal services and government revenue systems, the Federal Government has unveiled a suite of groundbreaking policies set to begin in 2026. These initiatives span cashless payments, comprehensive tax reforms, and new digital platforms—each designed to modernize public finances, eliminate revenue leakages, and boost transparency across Ministries, Departments, and Agencies (MDAs).
With the new year approaching, individuals, businesses, and public institutions are bracing for one of the most significant public finance overhauls in Nigeria’s recent history—a transformation that touches everything from paying for government services to how taxes are collected and receipts issued.
A New Era Begins: Mandatory Cashless Government Payments
From January 1, 2026, the Federal Government will ban all physical cash payments to federal MDAs. This means that whether you’re renewing a passport, applying for a licence, or paying administrative fees, cash will no longer be accepted. Instead, every payment must be made through electronic channels approved by the Office of the Accountant-General of the Federation.
Under this directive:
- All federal revenue collections must be processed electronically via systems approved by the treasury.
- MDAs are required to deploy Point-of-Sale (POS) terminals or other digital collection devices within 45 days.
- Notices such as “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” must be prominently displayed at all collection points.
This policy is aimed at addressing persistent revenue leakages, improper deductions, and manual cash handling practices that have weakened public finance integrity. It also aligns with broader efforts to integrate all government receipts into the Treasury Single Account (TSA) for tighter control and real-time visibility.
Ending Revenue Leakages: No More Unauthorized Deductions
One of the landmark measures accompanying the cashless policy is the prohibition of unauthorized deductions from revenue collections. Previously, some MDAs used front-end payment portals that deducted fees before remitting funds to the TSA, contributing to significant losses.
To curb this:
- All revenues must now be paid in full directly into the Treasury Single Account or designated sub-accounts.
- Service charges and fees must be paid separately from the TSA—rather than deducted at the point of collection.
- MDAs must regularize all existing payment platforms by December 31, 2025, or face sanctions including restricted access to key government financial systems.
This move strengthens accountability and ensures that public funds are properly recorded and traceable from the moment payment is made.
Introducing the Federal Treasury e-Receipt (FTeR) System
To complement the transition to cashless collections, the government is launching the Federal Treasury e-Receipt (FTeR)—a new, fully electronic, and centrally issued receipt system. From January 1, 2026, FTeR will become the only legally recognized proof of payment for federal government services.
This digital receipt system:
- Replaces traditional paper receipts.
- Is generated through a centralized platform and delivered electronically.
- Reduces fraud, enhances verification, and creates a reliable audit trail for every transaction.
For citizens and businesses, this means instant, secure confirmations of payments and stronger assurance that their transactions are properly recorded in government systems.
Revenue Optimisation Platform (RevOp): Unifying Government Financial Infrastructure
At the heart of the new system is the Revenue Optimisation Platform (RevOp)—a state-of-the-art digital ecosystem designed to unify the billing, reconciliation, tracking, and monitoring of all federal government revenues.
The RevOp platform:
- Integrates seamlessly with the TSA, GIFMIS, Central Bank of Nigeria systems, NIBSS, and revenue-collecting banks.
- Provides MDAs with real-time visibility into collections and reconciliations.
- Acts as the central hub for electronic collections and revenue administration.
This infrastructure is expected to streamline revenue flows across government entities, reduce inefficiencies, and enable better fiscal planning and accountability.
Tax Reforms: A New Framework Under the Nigeria Revenue Service
Parallel to the cashless payment push, the government is also implementing sweeping tax reforms that will take effect on January 1, 2026. A central feature of these reforms is the replacement of the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS)—a newly structured agency responsible for administering the updated tax laws.
The reforms are designed to modernize tax administration, improve compliance, and provide a more streamlined, transparent approach to tax collection for both individuals and businesses.
While the details of the new tax regime are extensive, early indications suggest that:
- New administrative procedures and enforcement mechanisms will be applied across the board.
- The changes are aimed at expanding the tax base while enhancing convenience and clarity for taxpayers.
- Small businesses and individual taxpayers may benefit from updated reliefs and simplified compliance processes.
These changes signify a major shift toward a modern, digitally enabled tax system—with broad implications for Nigeria’s economic governance.
What Citizens and Businesses Need to Know
The 2026 reforms are among the most ambitious federal public finance initiatives in Nigeria’s recent history. Here’s how they will impact everyday interactions with government:
Citizens will need to:
- Prefer electronic payment options over cash for all federal fees and services.
- Ensure access to digital payment channels when dealing with government agencies.
- Expect standardized electronic receipts for proof of payment.
Businesses should:
- Update accounting and financial systems to support electronic collections.
- Prepare for changes in tax administration and compliance under the NRS.
- Align internal processes with the new Revenue Optimisation Platform requirements.
Government agencies must:
- Deploy POS and approved digital payment infrastructure.
- Integrate with RevOp and TSA systems.
- Educate staff and service users on the transition to cashless payment systems.
