FG Directs MDAs to Remit 100 Percent of their IGR

Federal Government has directed the Federal Ministries, Departments and Agencies (MDAs) to remit 100 per cent of their Internally Generated Revenue (IGR) to a new account created in the consolidated revenue account in the federation account.

Finance Minister, Wale Edun in a circular to the MDAs, said the directive affected all MDAs receiving full funding from the federal government’s annual budget.

The IGR to be remitted, include statutory incomes, contract fees and sale of government assets.

For the MDAs that are partially funded from federal government’s budget, they will remit 50 per cent of their IGR to the sub account.

The minister explains that the shift in financial management ais at streamlining revenue collection and accountability in the MDAs.

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According to the circular, all self-funded Federal Government agencies/parastatals (receiving no allocation from the Federal Government budget) should remit 50 percent of their gross Internally Generated Revenue (IGR), including all statutory revenues like tender fees, contractor’s registration, sales of government assets etc to the sub recurrent account.

Furthermore, the circular said 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 percent auto deduction in line with the Finance Act,2020 and Finance Circular, 2021, 50 percent 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 percent on gross revenue of Self/partially funded agency/parastatals and 100 percent for fully funded agencies/ parastatals as interim remittance of the amount due to the Consolidated Revenue Fund.

This is to improve revenue generation, fiscal discipline, accountability and transparency in the management of government financial resources and prevention of waste and inefficiencies.

The revenue collection TSA Sub-Accounts currently operated and maintained by Agencies/Parastatals for receiving revenue from the public shall be blocked from access.

The accounts shall be under the full control of the Honourable Minister of Finance and Co-ordinating Minister of the Economy and the Accountant-General of the Federation.