Bola Ahmed Tinubu’s administration has closed the Treasury Single Account (TSA) previously utilized by the Muhammadu Buhari government for revenue collection.
The move, outlined in a circular dated December 28, 2023, from the Ministry of Finance on Tuesday, January 2, 2024, directs all ministries, departments, and agencies to remit 100 percent of their revenues into a Sub-Recurrent Account within the Consolidated Revenue Fund (CRF).
The CRF is the new account where the Tinubu administration will now receive and consolidate its revenue earnings.
The circular emphasizes that the objective behind this decision is to enhance “revenue generation, fiscal discipline, accountability, and transparency in resource management and waste prevention” during Tinubu’s tenure.
The directive read, “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).
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“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 revealed.
Additionally, agencies not funded by Tinubu’s government are expected to remit 50 percent 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 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 circular added. #Tinubu