Tinubu Orders MDAs to Remit 100% of Revenues to Sub-Recurrent Account

President Bola Tinubu’s administration has issued a directive requiring all federal government-funded ministries, departments, and agencies (MDAs) to remit 100% of their revenues into a Sub-Recurrent Account, a part of the Consolidated Revenue Fund (CRF). This move, revealed in a circular by the Finance Ministry on December 28 and made public on Tuesday, marks a departure from the single treasury account system used during the previous Muhammadu Buhari administration.

The directive aims to enhance revenue generation, fiscal discipline, accountability, and transparency in managing resources and preventing waste under President Tinubu’s leadership. According to the circular, fully funded MDAs, as outlined in the Fiscal Responsibility Act, 2007, are required to remit their Internally Generated Revenue (IGR) in full to the Sub-Recurrent Account. Agencies that receive partial funding from the federal government should remit 50% of their gross revenue, while statutory revenues like tender fees and sales of government assets should also be remitted in full to the sub-recurrent account.

Even agencies not fully funded by the federal government are expected to remit 50% of their generated revenues. The Office of the Accountant-General of the Federation will open new Treasury Single Account (TSA) Sub-Accounts for all federal government agencies and parastatals listed in the Fiscal Responsibility Act, 2007, except where exempted.

The new accounts will receive inflows from the old revenue-collecting accounts based on the new policy’s implementation. The Accountant-General will calculate deductions according to approved percentages, with the remaining funds entrusted to the remitting agency. This approach differs from the previous system, where agencies independently determined their remittances.

The Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy will closely collaborate to enforce this policy. The Accountant General will oversee and monitor the monthly review of both existing and new accounts of agencies and parastatals to ensure compliance with approved guidelines.

All concerned ministries and agencies are expected to fully comply with the directive unless expressly exempted.

Source: Peoples Gazette