President Bola Tinubu has ordered that all federally funded ministries, departments, and agencies send 100% of their income into a Sub-Recurrent Account, a subcomponent of the Consolidated Revenue Fund (CRF), into which the federal government will now receive and aggregate its revenue earnings.
According to The Punch, this order effectively cancels the single Treasury account used by the former Muhammadu Buhari administration. It was released by the Finance Ministry in a circular dated December 28 and made public on Tuesday. In light of Bola Tinubu’s impending presidency, this is the most recent action taken by the federal cabinet to “improve revenue generation, fiscal discipline, accountability and transparency” in resource management and waste prevention.
One hundred percent of Internally Generated Revenue (IGR) should be remitted to the Sub-Recurrent Account, which is a Sub-component of the Consolidated Revenue Fund (CRF), according to the directive. “All Ministries, Departments, and Agencies (MDAS) that are fully funded through the annual federal government budget (receiving personnel, overhead and capital allocation) and on the schedule of Fiscal Responsibility Act, 2007 and any addition by the Federal Ministry of Finance,” the directive stated.
It is also required of agencies that get no federal funding to return 50% of their earnings.
Although the present strategy is similar to that of the previous administration, all revenues in the new processes are combined into a single treasury account, and deductions are computed by the Office of the Accountant General using authorized percentages. After that, the remitting agency receives the remaining cash. This is in contrast to the previous administration, in which the remittances that agencies sent to the federal government were decided upon independently.
Because of the tight cooperation between the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy, strict enforcement of this policy is expected. the Office of the Coordinating Minister of Economy and the Accountant General. The accountant general is responsible for supervising, keeping an eye on, and reviewing agency/parastatal accounts—both new and old—once a month.
This guarantees that the supplementary accounts that the departments and agencies would utilize to hold internal money are credited with only funds that have been approved by the Accountant-General of the Federation (AGF) and the Honourable Minister of Finance and Coordinating Minister of the Economy (HMFCME).
Except in cases where acting differently is specifically allowed, all relevant ministries and agencies are expected to fully comply with the instruction
