Tinubu Shuts Down Buhari’s Single Treasury Account, Gives Directives To MDAs on Where To Deposit Funds

The administration of President Bola Tinubu has directed all federally financed ministries, departments, and agencies to deposit 100% of their earnings into the Sub-Recurrent Account, which is a component of the Consolidated Revenue Fund (CRF).

The goal of this action is to combine federal revenue receipts.

The directions, which deviate from the single treasury account structure employed during Muhammadu Buhari’s administration, were laid out in a circular issued by the Finance Ministry on December 28 and made public on Tuesday.

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This policy is a component of the federal cabinet’s larger plan, which President Tinubu is implementing to increase income collection, as well as to encourage fiscal responsibility, accountability, and openness in resource management and waste prevention.

The directives 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).

“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.

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“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.”

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