Nigeria’s Minister of Finance, Wale Edun, has issued a stern warning to federal ministries, departments, and agencies (MDAs), urging them to comply with the revised cash-management and bottom-up cash-planning policies or risk losing access to capital funding.
Speaking at a one-day stakeholders’ review meeting on the implementation of these policies, held on Thursday, Edun expressed concerns over non-compliance among some MDAs, despite clear operational guidelines issued by regulatory bodies, including the Accountant General of the Federation.
The Minister attributed the temporary restriction of certain agencies from accessing the Government Integrated Financial and Management Information System (GIFMIS) to their failure to adhere to the guidelines. He emphasized that such restrictions would continue for entities that do not meet the compliance requirements.
“The implementation of the revised cash management and bottom-up cash planning policy, as approved by Mr. President, was expanded with multiple circulars and guidelines, having been initiated in 2023 for capital projects,” Edun stated.
“There are concerns that some MDAs are still lagging behind in embracing these guidelines. This led to a temporary restriction of access to the GIFMIS platform for some agencies, which was restored only after compliance was ensured. Moving forward, any MDA that fails to comply will be withdrawn from accessing the funds necessary for capital projects.”
In her remarks, the Accountant General of the Federation, Oluwatoyin Sakirat Madein, underscored the necessity of modifying the bottom-up cash planning policy to align with the administration’s transparency agenda.
“You may recall the issuance of financial documents following the President’s approval for the modification of the bottom-up cash planning policy. This initiative was designed to establish clear rules and general guidance for government financial planning and cash resource management to enhance service delivery,” Madein explained.
She further noted that strategic steps, including the issuance of operational guidelines, had been taken to ensure MDAs’ compliance. The revised policy mandates the finalization of capital projects, leading to centralized capital payment disbursements from the Office of the Accountant General of the Federation in 2024.
“I am pleased to report that significant progress has been made. However, during implementation, several challenges and infractions were observed. While some of these issues have been addressed, others remain under review and will be highlighted in this quarter’s assessment,” she added.
The revised cash management policy aims to enhance fiscal discipline, transparency, and efficiency in government spending, reinforcing the administration’s commitment to financial accountability.
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