Nigeria centralises revenue flows in boldest overhaul since TSA

The federal government has launched its most ambitious public finance reform in more than a decade, unveiling a unified revenue platform that integrates the Treasury Single Account (TSA), the Government Integrated Financial Management Information System (GIFMIS), the Central Bank of Nigeria (CBN), the Nigeria Inter-Bank Settlement System (NIBSS) and other critical infrastructure into one digital monitoring hub.

The overhaul—anchored on four circulars issued by the Office of the Accountant General of the Federation (OAGF) between November 24 and 27—signals a decisive shift toward cashless transactions, automated audit trails and real-time visibility of federal revenue.

It also sets January 1, 2026, as the go-live date for mandatory digital receipts, which will become the only recognised proof of payment for all transactions across federal ministries, departments and agencies (MDAs).

The reforms are part of a broader strategy championed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, who has consistently pushed for a technology-driven overhaul of Nigeria’s revenue collection architecture to close leakages, curb corruption, and stabilise public finances.

Officials say billions of naira are lost each year through unauthorised deductions, opaque payment channels and manual processes that allow revenue to slip through the cracks.

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“This is the most far-reaching upgrade to federal treasury operations since the TSA,” an OAGF official familiar with the circulars told BusinessDay on Monday. “It moves Nigeria decisively into a cashless, transparent and data-driven era.”

At the centre of the reforms is the Revenue Optimisation Platform, or RevOp, now approved as government’s end-to-end system for billing, reconciliation, monitoring and performance tracking. RevOp will function as the central nervous system of federal revenue, integrating existing infrastructure and providing dashboards that show—in real time—what MDAs collect, remit and declare.

For citizens and businesses, the platform promises a more predictable and verifiable payment experience, eliminating the multiple and often conflicting channels currently used by government agencies.

A key element of the reform is the enforcement of a strict “no physical cash receipt” policy. Under the new rules, all federal revenue must be collected electronically, ending the cash-handling practices that have historically enabled fraud, suppressed collections and weakened record keeping.

MDAs have also been instructed to discontinue the use of customised applications built on unapproved payment platforms—systems that were often difficult to monitor and contributed to discrepancies between collections and remittances.

In one of the most consequential changes for revenue integrity, the federal government has outlawed all deductions at the point of collection, whether categorised as fees, commissions or service charges. Every naira collected must now be remitted in full to the TSA.

The introduction of the Federal Treasury e-Receipt (FTeR) represents another major shift. From January 1, 2026, the FTeR—generated centrally through RevOp and transmitted through MDA-selected channels—will be the sole legally recognised government receipt. It eliminates fake acknowledgements, unverifiable slips and parallel receipt books that have fuelled corruption for years.

“The idea is simple: if you pay the federal government, you get a single, verifiable, fraud-proof receipt every time,” the OAGF official said. “It closes one of the oldest loopholes in public finance.”

For the Treasury, the new e-receipt regime ensures that every payment is traceable from the moment it is made, creating an auditable trail that, when combined with the no-deduction rule, strengthens revenue assurance and simplifies reconciliation. For businesses—especially those operating across multiple regulatory and licensing regimes—it offers a uniform reference point that reduces disputes and delays.

The consolidation of TSA, GIFMIS, CBN, NIBSS, FIRS and other systems under RevOp is expected to reshape how policymakers understand and respond to fiscal pressures. For the first time, government will have a single source of truth for revenue data, enabling more accurate forecasting and quicker intervention when collections lag.

System-based controls will also limit discretionary decision-making by frontline officers—a long-standing driver of corruption in revenue-generating agencies.

Automation, officials argue, strips away many of the risks associated with human-led revenue handling while building greater public trust in government transactions.

For citizens long accustomed to inconsistent receipts, unpredictable charges and opaque payment procedures, the reforms offer the promise of a clearer and more accountable system.

Government officials have framed the changes as essential to improving Nigeria’s economic governance as the country seeks to stabilise its finances, expand the non-oil revenue base and strengthen fiscal transparency.

The reforms also align with global standards in public financial management, where digitisation and integrated systems have become the norm.

While the transition will require MDAs to upgrade systems, retrain staff and overhaul legacy processes, officials insist the long-term gains outweigh the short-term disruptions.

“This is one of the most comprehensive public finance reforms in recent times. It will increase government revenue, cut waste and stir transparency,” said Ike Ibeabuchi, an emerging markets analyst.

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