President Bola Tinubu’s government has shutdown the Single Treasury Account (TSA) used by Muhammadu Buhari’s administration for revenue collection.
The federal government has, however, directed that all ministries, departments, and agencies to remit 100 percent of their revenues into a Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund (CRF).
The CRF is the new account where the Tinubu administration will now receive and consolidate its revenue earnings.
This is according to a circular dated December 28, 2023, issued by the Ministry of Finance on Tuesday, January 2, 2024.
This directive effectively closes the single treasury account operated under the erstwhile Muhammadu Buhari administration.
The move, Politics Nigeria understands, is to help “improve revenue generation, fiscal discipline, accountability and transparency in resource management and waste prevention” under Tinubu’s administration.
“All Ministries, Departments and Agencies (MDAS) that are fully funded through the annual federal government budget (receiving personnel, overhead and capital allocation) and on the schedule of Fiscal Responsibility Act, 2007 and any addition by the Federal Ministry of Finance should remit one hundred per cent of their Internally Generated Revenue (IGR) to the Sub-Recurrent Account, which is a Sub-component of the Consolidated Revenue Fund (CRF),” the directive read.
“Agencies and departments that are partly funded by the federal government – having budgetary allocations for capital or overhead expenditures – 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 one 100 per cent to the sub-recurrent account,” it added.
Furthermore, agencies not funded by the federal government are also expected to remit 50 per cent of their generated revenues.
“For the avoidance of doubt, the Office of the Accountant-General of the Federation shall open new TSA Sub-Accounts for all Federal Government Agencies/Parastatals listed on the schedule of Fiscal Responsibility Act, 2007 and any additions by the Federal Ministry of Finance, except where expressly exempted.
“The new account opened for Agencies/Parastatal shall be credited with inflows in the old revenue-collecting accounts based on the new policy implementation of 50 per cent auto deduction in line with Finance Act, 2020 and Finance Circular, 2021, 50per cent cost to revenue ratio.”
The circular further stressed that: “The Office of the Accountant General of the Federation (0AGF), 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,” the directive read.
