President Bola Tinubu’s administration has ushered in a significant transformation in Nigeria’s fiscal policies, as revealed in a recent directive issued by the Finance Ministry on December 28.
The circular, made public on Tuesday, outlines a comprehensive shift in treasury management, closing down the erstwhile single treasury account (TSA) operated during the Muhammadu Buhari administration.
Under this directive, all ministries, departments, and agencies (MDAs) fully funded by the federal government are mandated to remit 100 percent of their revenues into a Sub-Recurrent Account. This account, a sub-component of the Consolidated Revenue Fund (CRF), will serve as the central repository for consolidating the federal government’s revenue earnings.
The move, part of the broader strategy to enhance revenue generation, fiscal discipline, accountability, and transparency, aligns with the overarching goals of Bola Tinubu’s nascent presidency.
Key points from the directive include:
Full Remittance for Fully Funded MDAs: MDAs fully funded by the federal government, as outlined in the annual budget and the Fiscal Responsibility Act, 2007, must remit 100 percent of their Internally Generated Revenue (IGR) to the Sub-Recurrent Account.
Partial Remittance for Partly Funded MDAs: MDAs that receive partial funding from the federal government, designated for capital or overhead expenditures, are required to remit 50 percent of their gross revenue.
Statutory Revenue Remittance: Statutory revenues, such as tender fees, contractor’s registration, and sales of government assets, must be remitted in full (100 percent) to the sub-recurrent account.
New TSA Sub-Accounts: The Office of the Accountant-General of the Federation will establish new TSA Sub-Accounts for all Federal Government Agencies/Parastatals. These accounts will be credited with inflows from the old revenue-collecting accounts based on the new policy’s auto deduction implementation.
Automatic Deductions: The Office of the Accountant General will automatically deduct 50 percent on the gross revenue of self/partially funded Agency/Parastatals and 100 percent for fully funded agencies/parastatals as an interim remittance to the Consolidated Revenue Fund.
The directive underscores the commitment to a unified treasury account, mirroring aspects of the previous administration’s approach but with enhanced consolidation and automated deductions. The close collaboration among the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy is expected to facilitate stringent enforcement.
The accounting oversight involves monthly reviews, ensuring that only approved funds reach supplementary accounts for internal use by departments and agencies. While the transition echoes past strategies, its meticulous implementation and emphasis on financial transparency signal a noteworthy departure in treasury management under the Tinubu administration.
