The Federal Government has issued a stern warning to all Ministries, Departments, and Agencies (MDAs): submit your annual financial statements by the deadline or lose access to government funds in 2026.
Strict Deadline and Severe Sanctions
In a decisive move to enforce fiscal discipline, the government has set December 31, 2025, as the final date for MDAs to prepare and submit their separate annual financial statements to the treasury. The directive comes from the Office of the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi.
Any MDA failing to comply will have the release of its funds suspended indefinitely. Furthermore, administrative consequences will target the leadership, with queries issued to the director or head of accounts and administration.
Revenue Collection and IGR Remittance Rules
The circular, titled "Guidelines of Financial Activities for End of the Year 2025," mandates MDAs to ensure all revenues due to the Federation Account and the Consolidated Revenue Fund are fully collected and accounted for before the year ends.
A key focus is on Internally Generated Revenue (IGR). MDAs authorized to retain 50% of their gross IGR must strictly remit the remaining 50% to the Treasury Single Account (TSA) Sub-Recurrent Account. This rule aligns with a finance circular issued on December 28, 2023.
Ogunjimi emphasized that MDAs must exercise "due diligence in the collection, utilisation, and remittance of their revenue." Detailed reports on these activities must be uploaded to the Government Integrated Financial Management Information System (GIFMIS) platform to maintain accurate records.
Operating Surplus and a History of Non-Compliance
The directive also reiterates rules on operating surpluses. Corporations and agencies under the Fiscal Responsibility Act 2007 must limit their total budgetary expenditure to 50% of gross revenue. They are then required to remit 80% of the remaining 50% into the TSA as an advance payment of operating surplus.
This push for accountability addresses a long-standing issue. The Fiscal Responsibility Commission previously disclosed that while over ₦5 trillion in operating surpluses was remitted between 2007 and 2024, more than ₦1.5 trillion was lost due to agencies failing to remit the required 80%.
The government's stance that unspent funds must be returned to the treasury at year-end has seen uneven compliance. The latest warning follows earlier measures, including a July directive for MDAs to report on unretired advances, prompted by a "surge in idle cash balances."
Separately, the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, had cautioned that non-compliance with cash planning policies could lead to the blocking of capital funds.
This latest circular signals a renewed and forceful push by the treasury to tighten financial controls as the 2025 financial year closes. For federal institutions, continued access to government coffers is now explicitly tied to full adherence to reporting, remittance, and expenditure regulations.
