The Federal Government has, through the Federal Ministry of Finance, directed all Ministries, Departments, and Agencies (MDAs) to remit 100 per cent of their internally generated revenue (IGR) to the New Treasury Account.
The aim is to enhance revenue generation, enforce fiscal discipline, and promote accountability and transparency in the management of government financial resources, mitigating the risk of waste and inefficiencies.
Minister of Finance and Coordinating Minister Of The Economy, Wale Edun, signed the circular, highlighting the importance of these measures for financial management.
The circular, dated December 28, 2023, mandated the Office of the Accountant-General of the Federation to create new Treasury Single Account (TSA) sub-accounts for all federal agencies/parastatals listed in the schedule of the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance, with few exceptions.
For fully funded MDAs through the annual federal government budget, the circular stipulates the remittance of 100 percent of their IGR to the Sub-Recurrent Account. Partially funded agencies should remit 50 percent of their gross IGR, while all statutory revenues, such as tender fees and sales of government assets, should be remitted 100 percent to the sub-recurrent account.