By John Ikani
President Bola Tinubu’s administration has issued a directive requiring all federally funded ministries, departments, and agencies to remit 100 percent of their revenues to a Sub-Recurrent Account, a component of the Consolidated Revenue Fund (CRF).
The move, outlined in a December 28 circular by the Finance Ministry and made public on Tuesday, signals the end of the single treasury account system employed during the previous Muhammadu Buhari administration.
The decision “aligns with the government’s ongoing efforts to enhance revenue generation, fiscal discipline, accountability, and transparency in resource management under President Bola Tinubu’s leadership.”
The directive mandates that “all fully funded MDAs, as per the federal budget and Fiscal Responsibility Act, remit their Internally Generated Revenue (IGR) to the Sub-Recurrent Account.
“Departments receiving partial federal funding, allocated for capital or overhead expenditures, are instructed to remit 50 percent of their gross revenue.
Statutory revenue, such as tender fees and sales of government assets, is to be remitted in full to the sub-recurrent account.
“Even agencies not directly funded by the federal government are expected to contribute by remitting 50 percent of their generated revenues.”
The Office of the Accountant-General of the Federation is set to open new Treasury Single Account (TSA) Sub-Accounts for all relevant federal agencies and parastatals.
To ensure compliance, “the Office of the Accountant General will automatically deduct 50 percent of gross revenue for partially funded agencies and 100 percent for fully funded agencies as an interim remittance to the Consolidated Revenue Fund.”
This approach, while reminiscent of the previous administration’s strategy, involves consolidating all revenues into a unified treasury account, with deductions calculated according to approved percentages.
Stringent enforcement of the policy is anticipated, with the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy working closely together.
“The Accountant General will be responsible for overseeing, monitoring, and conducting monthly reviews of agency accounts to ensure that only approved funds are credited to supplementary accounts.”
The directive emphasizes the imperative for all concerned ministries and agencies to fully adhere to the prescribed guidelines, unless expressly permitted otherwise.