The Federal Government of Nigeria has announced sweeping reforms aimed at transforming how Ministries, Departments, and Agencies (MDAs) collect and record public revenue, with a firm January 1, 2026 deadline for the compulsory use of the Federal Treasury E-Receipt (FTER) system.
The new policy, which applies to all revenue-generating MDAs, is designed to block leakages, improve transparency, enhance revenue reporting, and ensure real-time reconciliation between agencies and the Office of the Accountant-General of the Federation (OAGF).
Government officials say the introduction of the e-receipt is part of ongoing public finance reforms under the Treasury Single Account (TSA) and aligns with global practices that ensure automation, digital tracking, and accountability in government collections.
How the Federal Treasury E-Receipt Works
According to the OAGF, the Federal Treasury E-Receipt will replace all manual, paper-based receipts currently issued by MDAs. Under the new rule:
- All payments made to MDAs must generate an automated electronic receipt from the government’s central treasury platform.
- Agencies will no longer issue independent receipts using manual formats.
- Every transaction will be logged in the national financial database for monitoring and verification.
- The system will support e-payments, POS transactions, bank transfers, and verified cash lodgments through approved channels.
Officials say this will eliminate fake receipts, reduce fraud, strengthen audit trails, and make it easier to track government revenue across board.
Government’s Goal: Transparency and Real-Time Monitoring
A senior treasury official explained that the new policy aims to close long-standing revenue gaps, especially in agencies with high cash interactions.
“This reform will allow the Federal Government to know, in real time, how much each agency collects daily,” the official said.
The move is also intended to support Nigeria’s broader goals of:
- curbing financial misappropriation,
- improving cashless compliance,
- strengthening public trust, and
- aligning with international public financial management standards.
MDAs Ordered to Fully Migrate Before January 1
The Federal Government warned that no MDA will be exempt from the new rule.
By January 1, 2026, agencies must:
- fully adopt the Federal Treasury E-Receipt system,
- train relevant staff on the new digital procedure,
- stop using manual receipts entirely, and
- ensure all revenue channels sync with the central treasury platform.
Compliance checks will begin immediately, and agencies found violating the directive may face sanctions.
Public finance experts and transparency advocates have welcomed the move, calling it a major step toward cleaning up revenue administration.
Civil society groups say the success of the reform will depend on strict enforcement, staff capacity, and seamless technological integration across all MDAs.
Financial analysts also note that the reform could significantly boost the government’s non-oil revenue if properly implemented.
