The Federal Government has issued a stern final warning to all Ministries, Departments, and Agencies (MDAs), stating that any entity failing to submit its complete annual financial statements by the December 31, 2025 deadline will face severe sanctions, including the indefinite suspension of fund releases.
Strict Deadline and Consequences for Non-Compliance
In a circular dated December 22, 2025, the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, outlined the strict consequences for MDAs that do not prepare and render their separate yearly financial statements to the treasury on time. The circular, titled 'Guidelines of financial activities for end of the year 2025', mandates that any defaulting MDA will have its funds frozen.
Furthermore, a formal query shall be issued to the director or head of accounts and administration of the non-compliant agency. This move underscores the government's intensified drive for fiscal transparency and accountability as the year ends.
Detailed Guidelines on Revenue Collection and Remittance
The circular provides specific instructions on revenue handling. It directs all MDAs to ensure full collection and accounting of all revenues due to the Federation Account and the Consolidated Revenue Fund or TSA Sub-Recurrent account.
Regarding Internally Generated Revenue (IGR), MDAs are instructed to:
- Collect and retain 50% of their gross IGR.
- Remit the remaining 50% to the TSA Sub-Recurrent account.
This process must adhere to the finance circular referenced FMF/CME/OTHERS/IGR/CFR/21/2023, dated December 28, 2023. A complete report of this collection, utilization, and remittance must be uploaded to the Government Integrated Financial Management Information System (GIFMIS) platform.
Operating Surplus Remittance Rules
The circular also addresses operating surplus remittance for corporations and agencies listed under the Fiscal Responsibility Act 2007 (as revised). These entities are directed to:
- Limit total budgetary expenditure to 50% of their gross revenue.
- Remit 80% of the remaining 50% into the TSA Sub-Recurrent Account as an interim payment for operating surplus.
The government's stance follows a persistent call for MDAs to return unspent funds to the treasury at each accounting year's end. While the Fiscal Responsibility Commission (FRC) acknowledged that MDAs have remitted over N5 trillion in operating surpluses between 2007 and 2024, it also revealed a staggering loss. The failure of some MDAs to remit the required 80% operating surplus has cost the Federal Government over N1.5 trillion.
A Pattern of Increasing Fiscal Enforcement
This latest circular is part of a broader crackdown on financial indiscipline within government agencies. Earlier in January 2025, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, warned that non-compliance with the revised cash planning policy could lead to capital funds being blocked.
Subsequently, in July 2025, the Office of the Accountant-General of the Federation introduced tough new rules to address a massive spike in unretired advances and idle unspent cash across ministries. Those rules mandated yearly full reports on unretired advances, with breaches risking the loss of imprest privileges and other sanctions.
The December 22 circular represents the culmination of this year's enforcement efforts, setting a clear, non-negotiable deadline for financial reporting and placing the responsibility squarely on the heads of MDAs to avoid punitive measures.
