Tinubu Makes First Big Move in 2024, Shuts Down Federation Account for New Revenue Fund
- Nigerian government said all revenues from Ministries, Departments, and Agencies (MDAs) will now be remitted into the Consolidated Revenue Fund (CRF)
- The CRF is a new Treasury Single Account (TSA) sub-accounts for all federal agencies and parastatals cited under the Fiscal Responsibility Act, 2007
- The circular emphasizes that there will be no access to the revenue collection TSA Sub-Accounts run by Agencies for public revenue receiving
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
The federal government has directed all Ministries, Departments, and Agencies (MDAs) to remit 100% of their internally generated revenue (IGR) to the sub-recurrent account, a sub-component of the Consolidated Revenue Fund (CRF).
It made this known in a circular issued by the Ministry of Finance according to a Leadership report.
Source: UGC
According to the circular signed by Minister of finance and coordinating minister of the economy, Wale Edun, the government is also shutting down the Single Treasury Account (TSA) used by Muhammadu Buhari’s administration for revenue collection.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
MDA to remit their revenue to new account
The circular mandates that MDAs that get full funding from the federal government's annual budget submit 100% of their IGR to the Sub-Recurrent Account.
While all statutory income, including contract fees and sales of government assets are expected to be remitted 100% to the sub-recurrent account, partially funded agencies should only remit 50% of their gross IGR.
With a few exceptions, the circular requires the Office of the Accountant-General of the Federation to establish new Treasury Single Account (TSA) sub-accounts for all federal agencies and parastatals included in the schedule of the Fiscal Responsibility Act, 2007, as well as any additions made by the Federal Ministry of Finance.
Upon the implementation of the new policy, the newly created accounts for these agencies will receive inflows from their previous income collecting accounts.
It added that there will also be a 50% auto deduction from the account in compliance with the Finance Act of 2020 and Finance Circular of 2021.
The circular said:
“To strengthen the implementation of these directives, the Revenue & Investment Department and the Treasury Single Account Department of the Office of the Accountant-General of the Federation (OAGF) will supervise, monitor, and conduct a monthly review of both old and new accounts.
“This ensures that only approved funds are credited, aligning with the Presidential directives conveyed in a circular dated October 16, 2018,”
The circular emphasizes that the public revenue reception TSA Sub-Accounts for revenue collection run by agencies/parastatals would not be accessible.
Instead, the minister of finance and coordinating minister of the economy, and the accountant-general of the federation shall have complete authority over them.
In keeping with the Fiscal Responsibility Act, the ministry of finance and the OAGF would suggest suitable disciplinary actions and punishments against accounting officers of agencies/parastatals found to violate the circular's text in order to compel compliance.
Tinubu's Investigator Uncovers 593 Foreign Accounts ‘Opened’ by Godwin Emefiele, Gives Details
Legit.ng reported that Jim Obaze, the special investigator appointed by President Bola Tinubu to examine the activities of the Central Bank of Nigeria and related entities, has submitted incriminating reports against Godwin Emefiele, the former CBN governor.
The final report, titled 'Report of the Special Investigation on CBN and Related Entities (Chargeable Offences),' was submitted to the president on Wednesday.
The report revealed that Emefiele, the former governor, operated no fewer than 593 illegal bank accounts in the United Kingdom (UK), the United States (USA), and China.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
