EXPLAINER: How new treasury circulars will modernise Nigeria’s financial management

Federal Ministry of Finance

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The Federal Government issued a set of four new Treasury Circulars in November 2025. These circulars aim to enhance revenue transparency and modernise payment processes across all ministries, departments, and agencies.

Under the reforms, some of the new rules, including the mandatory digital receipt system, the Federal Treasury e-Receipt (FTeR), are scheduled to take effect from January 1, 2026.

According to a post on the Federal Ministry of Finance’s X account on Tuesday, the ministry said: “The Federal Government has issued new Treasury Circulars to strengthen revenue transparency and modernise payment processes across all MDAs.”

The ministry added that the circulars are designed to ensure that all public funds are properly accounted for, while reducing delays and leakages in government payments. The reforms require MDAs to adopt standardised digital payment channels, maintain detailed records of all transactions, and report revenue collections in real time.

For Nigerians, this means faster processing of government payments, better accountability for public resources, and a more transparent system for revenue collection and disbursement.

Key Points About the New Treasury Circulars

Enhanced Revenue Transparency All MDAs are now required to follow stricter reporting and accountability standards. This will make it easier to track government revenue and spending, reducing opportunities for corruption or mismanagement.

Modernised Payment Processes Payments from government coffers will now be digitalised, allowing for faster, more secure, and traceable transactions. Cash payments will be minimised, ensuring efficiency and reducing risks associated with handling physical money.

Centralised Financial Management MDAs will operate under a more coordinated financial system, making it easier for the government to monitor and manage public funds. This helps prevent duplication of efforts, delays, and inefficiencies in government projects.

Better Public Service Delivery With improved revenue tracking and payment systems, funds meant for public services, such as health, education, and infrastructure — are more likely to reach their intended destinations. Citizens can expect more timely and effective implementation of government programs.

Accountability and Compliance The circulars enforce stricter compliance measures for MDAs, with potential penalties for non-adherence. This ensures that public officials handle resources responsibly and transparently.

Empowering Citizens and Stakeholders By standardising reporting and payment processes, the public and stakeholders can more easily access information about government spending. This promotes civic engagement and allows Nigerians to hold authorities accountable.

Facilitating Audits and Oversight Digital records and consistent financial reporting make it easier for auditing bodies, like the Office of the Accountant-General and anti-corruption agencies, to detect irregularities.

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