Tinubu Administration Shuts Down Buhari’s Single Treasury Account in Bold Financial Move

In a policy shift, President Bola Tinubu’s administration has issued a directive requiring all fully federally funded ministries, departments, and agencies (MDAs) to remit 100% of their revenues into a Sub-Recurrent Account within the Consolidated Revenue Fund (CRF). This move effectively closes the single treasury account previously operated during the Muhammadu Buhari administration, as announced in a circular by the Finance Ministry on December 28.

The directive aims to enhance “revenue generation, fiscal discipline, accountability, and transparency” in resource management and waste prevention under President Tinubu’s leadership. MDAs fully funded by the federal government, as per the Fiscal Responsibility Act, 2007, are mandated to remit their Internally Generated Revenue (IGR) in full to the Sub-Recurrent Account.

For agencies partially funded by the federal government, which receive budgetary allocations for capital or overhead expenditures, the directive requires a remittance of 50% of their gross revenue. Additionally, statutory revenues such as tender fees, contractor’s registration, and sales of government assets are to be remitted in full to the sub-recurrent account.

Even agencies not directly funded by the federal government are expected to contribute by remitting 50% of their generated revenues. The Office of the Accountant-General of the Federation will create new Treasury Single Account (TSA) Sub-Accounts for all relevant federal agencies, except those expressly exempted.

This approach resembles the previous administration’s strategy but introduces a unified treasury account where the Office of the Accountant General calculates deductions according to approved percentages. Unlike the previous system, agencies no longer autonomously determine their remittances to the federal government.

The stringent enforcement of this policy is expected, with the Ministry of Finance, the Accountant General, and the Office of the Coordinating Minister of Economy collaborating closely. The Accountant General will oversee, monitor, and conduct monthly reviews of both existing and new accounts of agencies, ensuring compliance with approved funds.

All ministries and agencies are expected to adhere to this directive, unless expressly permitted to act differently. This overhaul is part of President Tinubu’s broader efforts to enhance financial management, foster transparency, and strengthen fiscal responsibility in government operations.