Toba Owojaiye reportingÂ
Abuja, NigeriaÂ
In a significant policy paradigm shift, President Bola Tinubu’s administration has mandated all federally funded ministries, departments, and agencies (MDAs) to channel 100% of their revenues into a Sub-Recurrent Account within the Consolidated Revenue Fund (CRF).
This move effectively terminates the single treasury account established during the Muhammadu Buhari administration, as detailed in a circular from the Finance Ministry on December 28.
The directive aims to bolster “revenue generation, fiscal discipline, accountability, and transparency” in resource management and waste prevention under President Tinubu’s leadership. According to the Fiscal Responsibility Act of 2007, fully federally funded MDAs are obligated to remit their Internally Generated Revenue (IGR) entirely to the Sub-Recurrent Account.
For agencies partially funded by the federal government, receiving budgetary allocations for capital or overhead expenditures, the directive mandates a remittance of 50% of their gross revenue. Statutory revenues such as tender fees, contractor’s registration, and government asset sales are to be remitted in full to the sub-recurrent account.
Truth Live News gathered that even agencies not directly funded by the federal government are expected to contribute by remitting 50% of their generated revenues. The Office of the Accountant-General of the Federation will establish new Treasury Single Account (TSA) Sub-Accounts for all relevant federal agencies, except those expressly exempted.
President Bola Tinubu’s administration underscores the directive, requiring all fully federally funded MDAs to remit 100% of their revenues into a Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund (CRF), marking a paradigm shift to improve financial governance and transparency.
This policy aligns with the government’s broader strategy to “improve revenue generation, fiscal discipline, accountability, and transparency” under Bola Tinubu’s nascent presidency.
The directive specifies that MDAs funded through the federal government budget must remit 100% of their IGR to the Sub-Recurrent Account. For those partially funded, a 50% remittance of gross revenue is required, while statutory revenues must be remitted in full to the sub-recurrent account.
Agencies not funded directly by the federal government are also obliged to remit 50% of their generated revenues. The Office of the Accountant-General of the Federation will create new TSA Sub-Accounts for relevant federal agencies, following the provisions of the Fiscal Responsibility Act of 2007 and any additions by the Federal Ministry of Finance.
While reminiscent of the previous administration’s approach, the new process consolidates all revenues into a unified treasury account, with the Office of the Accountant General calculating deductions according to approved percentages. This marks a departure from the prior autonomy agencies had in determining their remittances.
“The Office of the Accountant General of the Federation (OAGF) shall map and automatically effect direct deduction of 50 per cent on gross revenue,” reads the directive, emphasizing the stringent enforcement anticipated through collaboration among the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy.
The accountant general is tasked with overseeing, monitoring, and conducting monthly reviews of agency accounts, ensuring only approved funds are credited to supplementary accounts. All concerned ministries and agencies are expected to fully comply with the directive unless expressly permitted otherwise.