FG Threatens Sanctions for MDAs Over Non-Compliance with Cash Planning Policy
By Patience Ikpeme
The Federal Government has issued a stern warning to Ministries, Departments, and Agencies (MDAs) regarding compliance with the revised Bottom-Up Cash Planning Policy.
Failure to adhere to the policy’s guidelines may result in restrictions on access to funds allocated for capital projects, according to Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Edun delivered this warning at the Stakeholders’ Review Meeting on the Implementation of the Revised Policy on Cash Management and Bottom-Up Cash Planning held in Abuja on Thursday. The meeting was organized by the Office of the Accountant General of the Federation (OAGF).
The Minister explained that the bottom-up cash policy, initially introduced in 2023 and now integrated into the 2024 budget, is a key instrument for enhancing transparency, accountability, and efficiency in public financial management.
He expressed concern that some MDAs have been slow to adopt the policy’s operational guidelines. This lack of compliance has led to temporary restrictions on their access to the Government Integrated Financial Management Information System (GIFMIS), the platform used for government fund disbursement.
“The implementation of the revised cash-management and bottom-up cash-planning policy, as the AGF told us, was approved by Mr. President and was expanded with so many circulars and guidelines, having been initiated in 2023 for the capital projects,” Edun stated. He added, “There are concerns raised that some MDAs are still lagging in their embracing of the operational guidelines as issued by the various bodies, including the Accountant-General of the Federation, and this necessitated a temporary block of access to the GIFMIS platform for some entities that were subsequently restored when they complied.”
Edun emphasized that this practice will continue, making it clear that non-compliant MDAs will face consequences. “And I think that will carry on. If you do not comply, then you will be withdrawn from accessing the funds that you need to use to implement your capital projects,” he warned.
Beyond the immediate issue of cash management, Edun hinted at upcoming reforms in revenue generation. He stated that the government plans to increase automation and technology adoption to enhance internally generated revenue (IGR). He reaffirmed the commitment of President Bola Tinubu’s administration to fiscal discipline, emphasizing that government spending will be strictly aligned with available revenue, without resorting to excessive borrowing or printing of money.
Dr. Oluwatoyin Madein, the Accountant-General of the Federation (AGF), also addressed the meeting. She stated that the government is committed to strengthening financial oversight and ensuring compliance with the revised policy. Madein acknowledged the progress made in implementing the policy but also pointed to remaining gaps and challenges that the government is actively working to address.
“You may recall the issuance of finance documents following the approval of Mr. President for the modification of the bottom-up cash planning policy, initiated to provide a set of rules and general guidance for the conduct of government business in planning and management of limited cash resources for effective and efficient service delivery,” Madein said.
She further explained that strategic steps were taken, including the issuance of operational guidelines to guide MDAs in ensuring compliance. Madein also highlighted the policy directing the finalization of capital projects, leading to central disbursement of capital payments in 2024 from the Office of the Accountant General of the Federation. This, she noted, necessitated stakeholder engagement to ensure seamless implementation.
“I am glad to report that significant progress has been made,” Madein stated. “In the course of the implementation of the modified policy, some gaps and challenges were observed, some of which have been addressed, while others are at various stages of being resolved. Some of the challenges and infractions will be highlighted in the course of this quarter.”
