President Bola Ahmed Tinubu’s administration has shut down the Single Treasury Account (TSA) formerly activated and used by Muhammadu Buhari’s government for revenue collection in the country.
Therefore, the President, by this drcision shown in a circular dated December 28, 2023 and reportedly issued by the Federal Ministry of Finance, has directed that all ministries, departments and agencies (MDAs) hencefore remit 100 percent of their revenues into a Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund (CRF).
The move marks a departure from the previous administration’s approach and is aimed at enhancing revenue generation, fiscal discipline, accountability and transparency under President Tinubu’s government.
The circular specifically instructs fully funded MDAs, aligned with the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance, to remit all Internally Generated Revenue (IGR) to the Sub-Recurrent Account.
“Agencies and departments that are partly funded by the federal government…are expected to remit 50 per cent of their gross revenue, while statutory revenue like ‘tender fees, contractor’s registration, sales of government assets,’ etc., should be remitted 100 per cent to the sub-recurrent account,” the directive clarified.
Additionally, agencies not funded by the federal government are also required to remit 50 per cent of their generated revenues.
To implement the new policy, the Office of the Accountant-General of the Federation will open new TSA Sub-Accounts for all Federal Government Agencies/Parastatals, with automatic deductions aligned with the Finance Act, 2020, and Finance Circular, 2021.
The circular emphasised, “The Office of the Accountant General of the Federation (OAGF), subject to the categorisation of agencies, shall map and automatically effect direct deduction of 50 per cent on gross revenue of self/partially funded Agency/Parastatals and 100 per cent for fully funded agencies/parastatals as interim remittance of the amount due to the Consolidated Revenue Fund.”