The Federal Government has issued a stern warning to all Ministries, Departments, and Agencies (MDAs), stating that any failure to prepare and submit their annual financial statements by December 31, 2025, will result in severe penalties, including indefinite suspension of fund releases.
In a circular dated December 22, 2025, titled "Guidelines for Financial Activities for the End of the Year 2025," the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, directed MDAs to render their separate stand-alone annual accounts to the treasury without delay.
Non-compliant agencies risk having their funding halted indefinitely, while directors or heads of accounts and administration will face official queries.
The directive also mandates full collection and proper accounting of all revenues due to the Federation Account and the Consolidated Revenue Fund/TSA Sub-Recurrent Account.
MDAs authorised to retain 50 per cent of their internally generated revenue (IGR) must remit the remaining 50 per cent to the TSA Sub-Recurrent Account, adhering strictly to guidelines outlined in a 2023 finance circular.
Reports on the collection, utilisation, and remittance of such revenues must be uploaded to the Government Integrated Financial Management Information System (GIFMIS) platform to ensure complete records.
Additionally, corporations and agencies covered under the Fiscal Responsibility Act 2007 are required to cap budgetary expenditure at 50 per cent of gross revenue and remit 80 per cent of the balance as interim operating surplus to the TSA Sub-Recurrent Account.
The move reinforces the government's long-standing push for fiscal discipline, including the return of unspent funds at year-end. Earlier this year, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, threatened to block capital releases for non-compliant MDAs under revised cash planning policies.
In July 2025, the Office of the Accountant-General introduced stricter rules to address surging unretired advances and idle funds, warning of potential loss of imprest privileges for violators.
The Fiscal Responsibility Commission has noted that while over N5 trillion in operating surpluses has been remitted by MDAs between 2007 and 2024, more than N1.5 trillion has been lost due to non-remittance of the required 80 per cent by some agencies.
The latest circular underscores the Tinubu administration's commitment to transparency, accountability, and efficient public financial management as the 2025 fiscal year closes.
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