AGF Clarifies Payment Procedures for MDAs
By Patience Ikpeme
The Accountant General of the Federation (AGF) Dr. Oluwatoyin Madein, has addressed misconceptions about the payment processes involving Ministries, Departments, and Agencies (MDAs) in the country.
Dr. Madein emphasized in a statement issued in Abuja, that the Office of the AGF does not directly execute payments for projects and programmes initiated by MDAs.
The clarification came in response to media reports on a payment request from the Ministry of Humanitarian Affairs and Poverty Alleviation for grants intended for vulnerable groups across certain states in Nigeria. The AGF clarified that while her office received the payment request, it did not carry out the payment itself.
Explaining the standard procedure, Dr. Madein highlighted that allocations are disbursed to self-accounting MDAs according to the budget, and these MDAs hold responsibility for project implementation and subsequent payments. She stated that payments for such projects are supposed to be processed by the respective Ministries as self-accounting entities.
Regarding the specific request made by the Ministry of Humanitarian Affairs and Poverty Alleviation, Dr. Madein indicated that the Ministry was duly advised on the appropriate procedures to follow in line with established payment protocols. Additionally, she stressed the importance of channeling payments to verified beneficiaries’ bank accounts and not to individual accounts in the name of a Project Accountant.
Dr. Madein reaffirmed her commitment to upholding transparency and accountability in public financial management. She advised all MDAs to adhere strictly to the necessary steps required in conducting financial transactions.
The statement came subsequent to a letter dated December 20, 2023, from Dr. Betta Edu, the Minister of Humanitarian Affairs and Poverty Alleviation, requesting payment for programmes under the Renewed Hope Grant for Vulnerable Groups in Akwa Ibom, Cross River, Lagos, and Ogun states, totaling N585,189,500.00. The letter detailed specific amounts allocated to each state for vulnerable groups’ grants and provided specific bank details for the payment.
However, the AGF’s office did not execute the payment as requested in the letter, emphasizing the established procedure where such payments are to be processed by the respective Ministries responsible for the projects, ensuring funds are disbursed directly to verified beneficiaries’ bank accounts.