Gom Mirian
President Bola Tinubu has initiated a major overhaul of Nigeria’s fiscal policies through the recent implementation of a new directive issued by the Finance Ministry.
The directive, unveiled on Tuesday, marks a significant departure from the previous single treasury account (TSA) established during the Muhammadu Buhari administration.
The new directive mandates all federally funded ministries, departments, and agencies (MDAs) to remit 100% of their revenues into a Sub-Recurrent Account, which forms part of the Consolidated Revenue Fund (CRF).
This central repository will consolidate the federal government’s revenue earnings, aiming to bolster revenue generation, fiscal discipline, accountability, and transparency in line with President Tinubu’s administration goals.
Key highlights of the directive include the requirement for fully funded MDAs to remit 100% of their Internally Generated Revenue (IGR) to the Sub-Recurrent Account, while partially funded MDAs must remit 50% of their gross revenue. Additionally, statutory revenues, such as tender fees and sales of government assets, must be fully remitted to the sub-recurrent account.
To facilitate this process, the Office of the Accountant-General of the Federation will establish new TSA Sub-Accounts for all Federal Government Agencies/Parastatals, receiving inflows from the old revenue-collecting accounts through the implementation of auto deductions.
The directive also outlines automatic deductions of 50% of the gross revenue for self/partially funded Agencies/Parastatals and 100% for fully funded agencies/parastatals as an interim remittance to the Consolidated Revenue Fund.
This directive underscores a commitment to a unified treasury account, building on past strategies with enhanced consolidation and automated deductions. The Ministry of Finance, the Accountant-General, and the Office of the Coordinating Minister of Economy will work closely to ensure its rigorous enforcement
