The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has directed all self-funded Federal Government Agencies/Parastatals (receiving no allocation from the Federal Government Budget) to remit 50percent of their gross Internally-Generated Revenue (IGR) to the Sub-Recurrent Account.
The Minister, in a signed circular, dated December 2021 on Revenue, Expenditure and Internally-Generated Revenue (IGR) Remittances to the Consolidated Revenue Fund (CRF); the following guidelines are hereby issued for immediate compliance by all Federal Government Agencies/Parastatals for the collections, utilisation and remittances of IGR, stated that all Ministries, Departments and Agencies (MDAs).
He stressed that the remittance includes all statutory revenue lines like tender fees, contractor’s registration, sales of government assets etc. to the Sub-Recurrent Account.
The Minister, according to the statement, added that all 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 (FMF) should remit 100 percent of their IGR to the Sub-Recurrent Account, which is a sub – component of the Consolidated Revenue Fund (CRF).
According to the circular: “All partially-funded Federal Government Agencies/ Parastatals (receiving capital or overhead allocation from the Federal Government Budget) should remit 50 percent of their gross IGR, while all statutory revenue like tender fees, contractor’s registration, sales of government assets etc. should be remitted 100 percent to the Sub-Recurrent Account.
The circular further read in part: “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 50per cent auto deduction in line with Finance Act,2020 and Finance Circular, 2021, 50percent cost to revenue ratio.
“The revenue collection TSA sub-accounts currently operated and maintained by Agencies/Parastatals for receiving revenue from the public shall be blocked from access. The accounts shall be under the full control of the Minister of Finance and Co-ordinating Minister of the Economy and the Accountant-General of the Federation.
The circular directed that Agencies whose budget are funded through approved cost-of-collection are expected to submit their annual revenue and expenditure budget for review.
“Any expenditure not approved and or any surplus of revenue over expenditure shall be subjected to the rules guiding the computation of Operating Surplus.
It added that, “To ensure that MDAs properly account for all revenue and expenditure, they are to submit detailed Monthly Trial Balance to the Consolidated Accounts Department, Fiscal Account (Funds Department), Revenue and Investment Department of OAGF and Budget Office of the Federation, showing clearly the revenue and expenditure on each source of fund (Statutory Allocation, Aid and Grants, Retained IGR, etc) in accordance with IPSAS Accrual Basis of Accounting. The revised list of Agencies now covered by Fiscal Responsibility Act, 2007 and additions by the Federal Ministry of Finance are attached as appendix II.
“All Accounting Officers, Directors of Finance and Accounts, Directors of Internal Audit, Heads of Accounts and Heads of Internal Audit Units of MDAs and other Arms of Government are enjoined to give this circular the widest circulation and ensure strict compliance. Any questions and clarification required on the contents in this circular should be directed to the Office of the Accountant General of the Federation”.
