President Bola Ahmed Tinubu
Tinubu closes Buhari’s single treasury account
President Bola Tinubu’s administration has issued a directive mandating all ministries, departments, and agencies fully funded by the federal government to remit 100 per cent of their revenues into a Sub-Recurrent Account. This account serves as a sub-component of the Consolidated Revenue Fund (CRF), facilitating the federal government’s receipt and consolidation of its revenue earnings.
In a circular issued on December 28 by the Finance Ministry and publicized on Tuesday, President Bola Tinubu administration directed the closure of the single treasury account previously operated under the Muhammadu Buhari administration. This directive is part of the ongoing efforts by the federal cabinet to enhance “revenue generation, fiscal discipline, accountability, and transparency” in resource management and waste prevention under President Tinubu’s early presidency.
The directive, issued on December 28, mandates that fully funded Ministries, Departments, and Agencies (MDAs) under the federal government budget, as outlined in the Fiscal Responsibility Act, 2007 and any additional stipulations by the Federal Ministry of Finance, must remit 100 per cent of their Internally Generated Revenue (IGR) to the Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund (CRF). For partially funded agencies with budgetary allocations for capital or overhead expenditures, a 50 per cent remittance of their gross revenue is required, while 100 per cent of statutory revenue (e.g., tender fees, contractor’s registration, sales of government assets) should be remitted to the sub-recurrent account. Agencies not funded by the federal government are also instructed to remit 50 per cent of their generated revenues.
To implement this, the Office of the Accountant-General of the Federation will open new Treasury Single Account (TSA) Sub-Accounts for all Federal Government Agencies/Parastatals listed in the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance. The new account will receive inflows from the old revenue-collecting accounts, with a 50 per cent auto deduction in line with the Finance Act, 2020, and Finance Circular, 2021, maintaining a 50 per cent cost-to-revenue ratio.
This current approach, resembling the previous administration’s strategy, consolidates all revenues into a unified treasury account, with the Office of the Accountant General calculating deductions based on approved percentages. Unlike the prior administration, agencies no longer autonomously determine remittances; instead, the remaining funds are entrusted to the remitting agency.
Tinubu directive underscores the stringent enforcement of this policy, facilitated by close collaboration among the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy. The Accountant General is tasked with overseeing, monitoring, and conducting a monthly review of existing and new accounts for agencies/parastatals. This ensures that only funds approved by the Honourable Minister of Finance and Coordinating Minister of the Economy (HMFCME) and the Accountant-General of the Federation (AGF) are credited to supplementary accounts, maintaining compliance among the concerned ministries and agencies unless expressly permitted otherwise.