All Ministries, Departments, and Agencies (MDAs) have been instructed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, to return 100% of their internally generated revenue (IGR) to the sub-recurrent account.
The goal of the sub-recurrent account, which is a part of the Consolidated Revenue Fund (CRF), is to increase government spending transparency, fiscal restraint, and revenue generation.
“The Office of the Accountant-General of the Federation (OAGF) to create a new Treasury Single Account (TSA) sub-accounts for all federal agencies and parastatals listed in the schedule of the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance, with few exceptions,” was the directive contained in a circular dated December 28, 2023, signed by Edun.
According to Edun, upon the adoption of the new policy, the sub-recurrent account will be credited with inflows from previous revenue-collecting accounts, with a 50% auto deduction in accordance with the Finance Act, 2020, and Finance Circular, 2021.
“100% of their internally generated revenue to the Sub-Recurrent Account, while all statutory revenues, such as tender fees and sales of government assets, should be remitted 100% to the sub-recurrent account,” states the finance minister regarding all MDAs that receive full funding from the federal government budget.
