Tinubu shuts down Buhari-era TSA revenue collection system

The decision, revealed in a circular dated December 28, 2023, issued by the Ministry of Finance on Tuesday, January 2, 2024, directs all ministries, departments, and agencies (MDAs) to remit 100% of their revenues into a Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund (CRF).

The move marks a departure from the previous administration's approach and is aimed at enhancing revenue generation, fiscal discipline, accountability, and transparency under President Tinubu's governance.

The circular specifically instructs fully funded MDAs, aligned with the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance, to remit all Internally Generated Revenue (IGR) to the Sub-Recurrent Account.

"Agencies and departments that are partly funded by the federal government...are expected to remit 50 per cent of their gross revenue, while statutory revenue like 'tender fees, contractor’s registration, sales of government assets,' etc., should be remitted 100 per cent to the sub-recurrent account," the directive clarified.

Additionally, agencies not funded by the federal government are also required to remit 50 per cent of their generated revenues.

To implement the new policy, the Office of the Accountant-General of the Federation will open new TSA Sub-Accounts for all Federal Government Agencies/Parastatals, with automatic deductions aligned with the Finance Act, 2020, and Finance Circular, 2021.

The circular emphasised, "The Office of the Accountant General of the Federation (OAGF), subject to the categorisation of agencies, shall map and automatically effect direct deduction of 50 per cent on gross revenue of self/partially funded Agency/Parastatals and 100 per cent for fully funded agencies/parastatals as interim remittance of the amount due to the Consolidated Revenue Fund."