…Erring agencies to bar from accessing funds for capital projects
Sanction awaits Ministries, Departments, and Agencies (MDAs) of government that fail to comply with the revised Bottom-Up Cash Planning Policy of the Federal Government.
Such an erring agency could be restricted from accessing funds for capital projects, Minister of Finance and Coordinating Minister of the Economy, Wale Edun warned on Thursday.
The warning is coming against the backdrop of slow adoption of the policy as policy operational guidelines by MDAs.
The event was organised by the Office of the Accountant General of the Federation (OAGF).
Edun explained that the bottom-up cash policy, introduced in 2023 and integrated into the 2024 budget, was designed to enhance transparency, accountability, and efficiency in public financial management.
He noted that some MDAs had been slow to adopt the policy’s operational guidelines, necessitating temporary restrictions on their access to the Government Integrated Financial Management Information System (GIFMIS), the platform for fund disbursement.
Edun said, “The implementation of the revised cash-management and bottom-up cash-planning policy as the AGF told us, was approved by Mr President and was expatiated with so many circulars and guidelines, having been initiated in 2023 for the capital projects.
“There are concerns raised that some MDAs are still lagging in their embracing of the operational guidelines as issued by the various bodies including the accountant general of the federation, and this necessitated a temporary block of access to the GIFMIS platform for some entities that were subsequently restored when they complied.
“And I think that will carry on. If you do not comply, then you will be withdrawn from accessing the funds that you need to use to implement your capital projects.”
Beyond cash management, the Minister hinted at upcoming reforms in revenue generation, with increased automation and technology adoption to enhance internally generated revenue (IGR).
He reaffirmed President Bola Tinubu’s administration’s commitment to fiscal discipline, stating that government spending will be strictly tied to available revenue, without resorting to excessive borrowing or printing of money.
In her remarks, the Accountant-General of the Federation (AGF), Dr Oluwatoyin Madein, said that the government is committed to strengthening financial oversight and ensuring compliance with the revised policy.
According to Madein, while significant progress has been made, some gaps and challenges remain, which the government is actively working to resolve.
“You may recall the issuance of finance documents following the approval of Mr President for the modification of the bottom-up cash planning policy, initiated to provide a set of rules and general guidance for the conduct of government business in planning and management of limited cash resources for effective and efficient service delivery.
According to that, strategic steps were taken, including the issuance of operational guidelines to guide ministries, departments, and agencies to ensure compliance.
“Part of the policy directing the finalization of capital projects that lead to central disbursement of capital payments in the year 2024 from the Office of Accountant General of the Federation, which necessitated stakeholders’ engagement and solicitation for seamless implementation,
“I am glad to report that significant progress has been made. In the course of the implementation of the modified policy, some gaps and challenges were observed, some of which have been addressed, while others are in various stages of being resolved. Some of the challenges and infractions will be highlighted in the course of this quarter,” she added
