The reform introduces a standardised, digitally verifiable receipt system for all payments made into federal accounts, ensuring that every transaction recorded in government books corresponds to actual inflows received by the Treasury.
According to the Ministry of Finance, the FTR represents a critical milestone in tightening financial controls and closing loopholes that have long weakened public revenue administration.
The rollout of the FTR coincides with the introduction of the Central Billing System (CBS), which harmonises the pricing and billing of government services. Both platforms are integrated into the Revenue Optimisation and Assurance Platform (RevOp) — a comprehensive digital ecosystem that went live on August 1, 2025.
RevOp enables real-time visibility of revenue inflows from ministries, departments, and agencies (MDAs), automating reconciliation and settlement processes between the Treasury and revenue-generating institutions.
“The goal is to ensure every naira due to the Federation is captured, reconciled, and accounted for,” the Ministry stated.
If successful, the FTR could help broaden Nigeria’s revenue base, reduce unrecorded inflows, and strengthen audit trails. It may also boost public confidence in the fiscal system and promote voluntary tax compliance.
Nigeria’s tax-to-GDP ratio remains below 10 percent — one of the lowest in the world — and the International Monetary Fund (IMF) has repeatedly urged the country to expand its tax base and improve digital oversight.
The Ministry noted that the FTR–CBS–RevOp system directly addresses these weaknesses and supports broader fiscal reforms, including the revenue-sharing formula review currently being handled by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
A 30-day pilot phase of the FTR has begun across ten federal agencies to test compliance and technical readiness. A nationwide rollout will follow after successful evaluation.
The reform comes as the government prepares to establish the Nigeria Revenue Service (NRS) in January 2026 — a unified authority for managing all federal revenues.
However, experts have raised concerns about whether MDAs will fully integrate their receipts into the new system and if Nigeria’s ICT infrastructure can sustain real-time digital tracking nationwide.
