FGN stops end of year spendings by MDAs

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The tradition of diverting  money generated by the ministries, department and agencies (MDAs) as well as other government institutions as the year comes to end by workers has caused the Federal Government of Nigeria to stop the trend.

 The office of the Acting Accountant-General of the Federation, Sylva  Okolieaboh in a circular dated December 19

addressed to the Chief of Staff to the President and other senior officials of government, including Heads of MDAs, captioned: “Guidelines of financial activities for the end of the year 2022”, warned that “no money shall be spent by MDAs merely because it has been voted for”.

 “As the financial year 2022 is coming to an end, it has become imperative to provide relevant guidelines to all MDAs and other arms of government on financial activities for the financial year ending 31st December 2022. The objective of the guidelines is to promote probity, transparency, accountability and prudence in the management of public resources,” read part of the circular, warning MDAs to adhere to revenue collection and reporting.

To ensure that all revenues due to the government are fully collected and accounted for, the circular told all MDAs to adhere to the provisions of all treasury circulars issued in respect of revenue collections, accounting and reporting. With respect to the remittance of operating surplus, it made reference to Corporations, agencies listed in the Fiscal Responsibility Act 2007 as amended and relevant finance circulars. Ref: BOF/Rev/12235/vii/201 of the November 11, 2001, BOF/ Rev/ 1235/vii/268 of July 7, 2014 and Rev  No. FMF/HMSF/2016/of November 21, 2016 should remit an applicable percentage of 80 percent operating surplus to the CRF/TSA.

It added: “All relevant agencies that have their operating surplus reconciled and agreed upon should ensure that payments are made on before 31st December 2022.” The circular warned of non-rendition of financial reports to the treasury and non-preparation of annual statutory financial statements.

The Office of Accountant- General of the Fed-eration (OAGF) said: “In line with presidential directive and provisions of FR. 3123, any MDA that fails to prepare or submit monthly balance and its annual financial statements will have its allocation of fund (s) suspended indefinitely. Further to this, a query shall be issued to the Director or Head of finance and account of the MDA.”

Before now most of the agencies remitted inadequate revenues to CRF, a development that prevented the government from meeting its budget funding obligations

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