The Federal Government of Nigeria has issued a sweeping new directive, prohibiting all cash payments for government goods and services across its ministries, departments, and agencies.
This major policy shift mandates an immediate and complete transition to electronic and digital payment channels for all official transactions.
A circular enforcing this ban instructs the leadership of every MDA to ensure the immediate installation of point-of-sale terminals at all revenue collection points. This move is designed to capture all government revenues electronically, leaving a clear and auditable digital trail for every naira collected from the public.
Officials state the primary objectives of this policy are to significantly enhance transparency and drastically reduce the long-standing risks of revenue leakage and cash mishandling within the public sector. By eliminating physical cash, the government aims to block a major avenue for corruption and ensure that all public funds are properly accounted for from the moment of collection.
The directive represents a critical next step in the government’s broader push for a cashless economy and the digital transformation of public financial management. It follows previous efforts to streamline government payrolls and payments through the Treasury Single Account and other integrated financial platforms.
Members of the public who need to make payments for services like passports, licenses, fines, or permits will now be required to use bank transfers, debit cards, or other approved electronic methods. The order implies that cash will simply not be accepted as a valid form of payment at any federal government office for official transactions.
While the policy promises greater accountability, its successful implementation hinges on overcoming practical challenges. These include ensuring reliable power and internet connectivity at all government offices, providing adequate training for staff, and managing the transition for citizens in areas with limited banking access or digital literacy.
The directive takes immediate effect, signaling a determined effort by the government to leverage technology to sanitize public finance. The coming weeks will test the readiness of MDAs to comply fully and the public’s adaptation to this new, mandatory cashless interface with the federal government.
