FG to sanction MDAs that fail to render financial statements

FG to sanction MDAs that fail to render financial statements
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The Federal Government has said it will not spare any ministry, department, or agency (MDA) that fails to prepare and render statements of accounts to the treasury on or before December 31, 2025.

The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, in a circular dated December 22, 2025, warned that any MDA that fails to prepare and render its separate (stand-alone) annual financial statements will have its release of funds suspended indefinitely, while a query shall be issued to the director/head of accounts and administration.

The circular, titled ‘Guidelines of Financial Activities for End of the Year 2025’, also directs all MDAs to ensure that all revenues due to both the Federation Account and Consolidated Revenue Fund/TSA Sub-Recurrent account of the federal government are fully collected and accounted for.

It directs MDAs permitted to collect and retain 50 per cent of their gross internally generated revenue (IGR) and remit 50 per cent to the TSA Sub-Recurrent account to ensure due diligence in the collection, utilisation, and remittance of their revenue, as provided by the finance circular with reference number FMF/CME/OTHERS/IGR/CFR/21/2023, dated December 28, 2023.

According to the circular, the report of such collection, utilisation, and remittance must be uploaded into the GIFMIS platform for completeness of accounting records.
On remittance of operating surplus, the circular directs all corporations, agencies, and departments listed on the schedule of the Fiscal Responsibility Act 2007, revised by finance circular with reference number FMF/CME/OTHERS/IGR/CFR/21/2023, dated December 28, 2023, to limit their total budgetary expenditure to 50 per cent of their gross revenue and remit 80 per cent of the remaining 50 per cent into the TSA Sub-Recurrent Account as interim/advance payment of operating surplus.

The Federal Government has persistently emphasised the need for MDAs to return any unspent funds in their coffers to the treasury at the end of the accounting year.

While the Fiscal Responsibility Commission (FRC) admits that MDAs have so far remitted over N5 trillion of their operating surpluses between 2007 and 2024, it also regrets that the Federal Government has lost over N1.5 trillion from the failure of some MDAs to remit 80 per cent of the operating surplus to the Consolidated Revenue Fund.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, had in January this year warned that if MDAs don’t comply with the revised cash planning policy, their capital funds could get blocked — straight-up.

In July, the Office of the Accountant-General of the Federation rolled out tough new rules after noticing a massive spike in unretired advances and unspent cash sitting idle across ministries. They warned that MDAs must submit full reports on unretired advances yearly, and any breach could mean losing imprest privileges or even sanctions.(Guardian)