President Tinubu Makes First Big Move in 2024, Shuts Down Federation Account for New Revenue Fund
In a recent development, the federal government of Nigeria has issued a directive for all Ministries, Departments, and Agencies (MDAs) to remit 100% of their internally generated revenue (IGR) to a newly created sub-recurrent account under the Consolidated Revenue Fund (CRF). This information was communicated through a circular from the Ministry of Finance, signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Key points from the circular include:
- Transition from TSA to CRF:
- The circular announces the discontinuation of the Single Treasury Account (TSA) previously used for revenue collection during Muhammadu Buhari’s administration.
- Revenue Remittance:
- MDAs receiving full funding from the federal government’s annual budget are instructed to submit 100% of their IGR to the Sub-Recurrent Account.
- Statutory Income Remittance:
- All statutory income, contract fees, and sales of government assets should be remitted 100% to the sub-recurrent account.
- Partial Remittance for Partially Funded Agencies:
- MDAs that are partially funded should remit 50% of their gross IGR.
- Creation of New TSA Sub-Accounts:
- The Office of the Accountant-General of the Federation is tasked with establishing new Treasury Single Account (TSA) sub-accounts for all federal agencies and parastatals as outlined in the Fiscal Responsibility Act, 2007.
- Monthly Review:
- The Revenue & Investment Department and the Treasury Single Account Department of the Office of the Accountant-General of the Federation will supervise, monitor, and conduct a monthly review of both old and new accounts.
- Auto Deduction and Compliance:
- A 50% auto deduction from the account will be in compliance with the Finance Act of 2020 and Finance Circular of 2021.
- Restricted Access to TSA Sub-Accounts:
- The circular emphasizes that the TSA Sub-Accounts for revenue collection run by agencies/parastatals will not be accessible to the public. The Minister of Finance and Coordinating Minister of the Economy, along with the Accountant-General of the Federation, will have complete authority over them.
- Disciplinary Actions for Non-Compliance:
- The Ministry of Finance and the Office of the Accountant-General of the Federation reserve the right to suggest suitable disciplinary actions and punishments against accounting officers of agencies/parastatals found to violate the circular, ensuring compliance with the Fiscal Responsibility Act.
This shift in financial management is expected to streamline revenue collection and enhance accountability within the government agencies.
