The Minister of Finance, Mrs Kemi Adeosun, has ordered all ministries, departments and agencies (MDAs) of government to ensure that they remit revenues and generate operating surpluses and credit same to the Consolidated Revenue Fund (CRF) in line with the probity and accountability standards of President Muhammadu Buhari.
Mr. Marshall Gundu, Director of Press, Federal Ministry of Finance, in a statement on Friday said Adeosun gave the order on Friday through a circular to the MDAs.
The circular, according to Gundu, “is aimed at compelling Boards and agencies which currently operate outside of budgetary control to comply with the law. Sec 22(2) of the Fiscal Responsibility Act (FRA) lists agencies including NPA, NIMASSA, NAFDAC, JAMB, NTA, NCC, CAC, NECO, who should remit 80% of their operating surplus into the Consolidated Revenue Fund”.
According to the statement, Adeosun regrets that “records show very poor compliance with the provisions of the Fiscal Responsibility Act”, as “some agencies have never credited the Consolidated Revenue Fund despite having salary, capital and overhead financed by the Federal Government. Indeed, cost to income rates of 99.8% have been the average, meaning that they spend all their internally-generated revenue and subventions released to them.”
According to the Minister, “such practices are not sustainable in any economic climate and with the current serious economic challenges being faced by Nigeria, can no longer be tolerated. Accordingly, all revenue generating agencies must comply with the circular and cut their costs.”
In the circular sent to MDAs, the Minister said, “Revenues generated by all MDAs must be reported on a gross basis prior to any deductions. Also, all self-funded Federal Agencies are to limit their annual expenditures from their internally generated revenues to not more than 75% of their total gross revenue, while fully funded agencies are to remit all their internally generated revenue (IGR) to the Consolidated Revenue Fund (CRF)”.
The Circular stated, “Henceforth, 80% of the resulting operating surplus by MDAs should be remitted into the Consolidated Revenue Fund (CRF) on a quarterly basis, in accordance with the Fiscal Responsibility Act.
“To ensure continual monitoring, the circular required all MDAs funded through the annual budget (to) submit monthly Expenditure Transcripts and Revenue Returns, to the Office of the Accountant-General of the Federation (OAGF), while agencies not funded through the annual Federal Government budget are to prepare and submit Quarterly Management Accounts including Revenue Returns to the OAGF”.
She reminded “all MDAs that in line with Financial Regulations (FR) 107, the Accountant-General of the Federation shall carry out routine revenue monitoring and inspection visits to the MDAs to verify compliance with the new guidelines. The circular said any Accounting Officer/Chief Executive Officer of MDAs that defaults in remitting revenues as appropriate as and when due shall be sanctioned accordingly and the renewal of the tenure of appointment of Accounting Officers/Chief Executive Officers shall be tied to their compliance with the content the new guidelines.”
-Leadership
