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PoS takeover: FG ends cash payments in MDAs

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The Federal Government has outlawed the use of physical cash for the payment of revenue and directed Ministries, Departments, and Agencies to install Point of Sale terminals within 45 days.

The directive formed part of four Treasury circulars issued by the Office of the Accountant-General of the Federation and obtained by The PUNCH on Monday. In the documents, the Accountant-General, Shamseldeen Ogunjimi, said all payments to the Federal Government must now be made electronically and routed through channels approved by the Treasury.

“All payments to government must be made through electronic channels approved by the Office of the Accountant-General of the Federation and integrated into the appropriate Treasury Single Account,” the circular read, warning that the continued acceptance of physical cash was prohibited.

“In view of the above, it is hereby directed that collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to the Federal Government is strictly prohibited. All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing,” the circular stated.

The first circular, titled ‘Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions’, dated November 24, 2025, said the government was alarmed at the “continued physical cash collection” at MDA revenue points despite existing rules on e-payment and the Treasury Single Account.

It said physical cash collection violated extant policies and “weakens the integrity of Federal Government e-collection and e-payment systems.” The circular directed all MDAs and Federal Government Owned Enterprises to immediately sensitise staff and the public on the ban and to display notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue collection points.

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It added that any MDA currently collecting cash must, within 45 days, deploy functional POS terminals or other approved electronic devices at all locations. To enforce compliance, it warned that accounting officers would be held responsible for any breach.

A second circular, dated November 25, 2025, and titled ‘Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems’, focused on unauthorised deductions made by MDAs through customised payment platforms.

According to the document, the Treasury observed that MDAs were using front-end applications linked to various Payment Solution Service Providers through which charges, fees, and commissions were deducted before the net amount was remitted to the Treasury Single Account.

It said the practice violated existing regulations and had resulted in “significant revenue leakages, which undermine the Federal Government’s efforts to achieve fiscal transparency.” The circular ordered an immediate halt, saying all revenues must be remitted to designated TSA or Sub-TSA accounts “without any deduction(s).”

It stressed that any fees arising from service provision must now be paid directly from Treasury accounts rather than being deducted at source. All existing portals and PSSPs used for revenue collection must also be regularised with the OAGF on or before December 31, 2025.

MDAs involved in public-private partnerships were advised to seek further guidance from the Treasury. The document warned that non-compliant MDAs would have their access to the Government Integrated Financial Management Information System and TSA accounts disabled.

A third circular, titled ‘Adoption of the Federal Treasury e-Receipt (FTe-R)’ and dated November 26, 2025, introduced a mandatory national e-receipt system. The circular said the Federal Treasury would, from January 1, 2026, begin issuing a unified electronic receipt for all Government payments.

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It added that only the centrally-issued FTe-R would be recognised as valid proof of federal transactions. “With effect from 1st January 2026, the Treasury will commence the issuance of FTe-R,” the circular stated.

The receipts will be issued through the Revenue Optimisation platform and delivered electronically via channels selected by each MDA. The FTe-R will serve both as a receipt for the payer and as official proof of revenue collection for the government entity.

The fourth circular, dated November 27, 2025, was titled ‘Rollout and Implementation Guidelines on the Adoption of the Revenue Optimisation (RevOP) Platform’. It said the government was now deploying a digital platform to improve visibility of revenue collections, streamline billing, and allow real-time monitoring of accounts held by MDAs.

RevOP has been adopted as the approved service-wide platform for end-to-end revenue optimisation. According to the document, it would provide unified automation of billing, reconciliation, and treasury visibility, and integrate with TSA, GIFMIS, CBN, NIBSS, FIRS, and revenue-collecting banks.

Each MDA is required to nominate three officers to serve as RevOP focal personnel within seven working days and ensure integration of existing financial systems with the platform.

The circular added that only Payment Solution Service Providers licensed by the Central Bank and recommended by NITDA and approved by the OAGF would be allowed to operate. All PSSPs currently used by MDAs must connect to the platform for “instant harmonisation of Government collections.”

The Treasury also ordered MDAs to submit full details of all local and foreign currency accounts and ensure compliance within 60 days. All four circulars were signed by Ogunjimi, who directed accounting officers, finance directors, and internal auditors to give the documents the widest circulation and ensure strict compliance.

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The measures represent some of the most far-reaching changes to federal revenue administration since the introduction of the Treasury Single Account a decade ago.

Earlier in March 2025, The PUNCH reported that the Federal Government unveiled a new payment platform named Treasury Management & Revenue Assurance System, which is designed to streamline and manage federal revenue collections and payments across ministries, departments, and agencies, including those benefiting from donor funds, trust funds, social security funds, and special funds.

According to a memo seen by The PUNCH, the first phase would cover payments and collections for the naira component only. It would also enable the OAGF and MDAs to generate bank statements, track balances, and activate automatic deduction and remittance of taxes associated with vendor and contractor payments, including VAT, Withholding Tax, and Stamp Duty.

The second phase, expected to commence on June 1, 2025, would cover collections and payments involving foreign exchange and integration with MDA Enterprise Resource Planning systems.

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

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Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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