The federal government has, through the Federal Ministry of Finance, directed all Ministries, Departments, and Agencies (MDAs) to remit 100 per cent of their internally generated revenue (IGR) to the sub-recurrent account, a sub-component of the Consolidated Revenue Fund (CRF).
The aim is to enhance revenue generation, enforce fiscal discipline, and promote accountability and transparency in the management of government financial resources, mitigating the risk of waste and inefficiencies.
Minister of finance and coordinating minister of the economy, Wale Edun, signed the circular, highlighting the importance of these measures for financial management, which was sighted by LEADERSHIP, yesterday.
The circular, dated December 28, 2023, mandated the Office of the Accountant-General of the Federation to create new Treasury Single Account (TSA) sub-accounts for all federal agencies/parastatals listed in the schedule of the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance, with few exceptions.
For fully funded MDAs through the annual federal government budget, the circular stipulates the remittance of 100 percent of their IGR to the Sub-Recurrent Account. Partially funded agencies should remit 50 percent of their gross IGR, while all statutory revenues, such as tender fees and sales of government assets, should be remitted 100 percent to the sub-recurrent account.
Additionally, self-funded federal agencies/parastatals, not receiving any allocation from the federal government budget, should remit 50 percent of their gross IGR, including all statutory revenues, to the sub-recurrent account.
The new accounts opened for these agencies will be credited with inflows from old revenue collecting accounts based on the new policy’s implementation, with a 50 percent auto deduction in line with the Finance Act, 2020, and Finance Circular, 2021.
“To strengthen the implementation of these directives, the Revenue & Investment Department and the Treasury Single Account Department of the Office of the Accountant-General of the Federation (OAGF) will supervise, monitor, and conduct a monthly review of both old and new accounts.
“This ensures that only approved funds are credited, aligning with the Presidential directives conveyed in a circular dated October 16, 2018,” the circular reads I’m part.
The circular emphasises that the revenue collection TSA Sub-Accounts operated by Agencies/Parastatals for public revenue reception will be inaccessible. Instead, they will be under the full control of the Minister of Finance and Coordinating Minister of the Economy, along with the Accountant-General of the Federation.
To enforce compliance, the ministry of finance and the OAGF will recommend appropriate disciplinary actions and sanctions against accounting officers of agencies/parastatals found in violation of the circular’s content, in line with the Fiscal Responsibility Act.
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