In a significant move aimed at enhancing fiscal discipline and transparency, the administration of President Bola Tinubu has directed all ministries, departments, and agencies, MDAs, fully funded by the federal government to remit 100% of their revenues into a Sub-Recurrent Account.
The circular issued by the Finance Ministry on December 28, 2023, and publicized on Tuesday marks a departure from the single treasury account model under the previous administration.
The directive, part of the administration’s efforts to improve revenue generation and prevent waste, closes the single treasury account and introduces a Sub-Recurrent Account as a sub-component of the Consolidated Revenue Fund, CRF. The circular claims that , fully funded MDAs are required to remit 100% of their Internally Generated Revenue (IGR) to the Sub-Recurrent Account.
Partially funded agencies, with budgetary allocations for capital or overhead expenditures, are expected to remit 50% of their gross revenue, while statutory revenue such as tender fees and contractor’s registration fees should be remitted 100% to the Sub-Recurrent Account. Agencies not funded by the federal government are also instructed to remit 50% of their generated revenues.
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The Office of the Accountant-General of the Federation is tasked with opening new Treasury Single Account, TSA, Sub-Accounts for all federal government agencies and parastatals, except where expressly exempted. The new accounts will receive inflows from the old revenue-collecting accounts based on the new policy implementation.
The directive emphasizes the automatic deduction of 50% on the gross revenue of self/partially funded agencies and 100% for fully funded agencies as interim remittance to the Consolidated Revenue Fund. The stringent enforcement of this policy is expected through the collaboration of the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy.
All concerned ministries and agencies are expected to fully comply with the directive unless expressly permitted otherwise. This initiative underscores the government’s commitment to accountability, transparency, and efficient financial management.
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