Nigeria Federal Mandate: Ministries Instructed to Remit 100% Internally Generated Revenue to New Treasury Account for Fiscal Transparency

In a bid to bolster revenue generation and instill financial discipline, the Federal Ministry of Finance has directed all Ministries, Departments, and Agencies (MDAs) to remit their entire internally generated revenue (IGR) to the newly established Treasury Single Account (TSA). The circular, signed by Minister Wale Edun, aims to enhance transparency, accountability, and efficiency in the management of government finances.

Dated December 28, 2023, the circular mandates the creation of TSA sub-accounts by the Office of the Accountant-General of the Federation for all federal agencies and parastatals listed in the schedule of the Fiscal Responsibility Act, 2007. Fully funded MDAs are required to remit 100% of their IGR to the Sub-Recurrent Account, while partially funded agencies should contribute 50% of their gross IGR.

The directive also outlines that all statutory revenues, including tender fees and sales of government assets, must be remitted in full to the sub-recurrent account. This move is seen as a crucial step towards preventing waste and inefficiencies, fostering fiscal responsibility in government financial management.