Business

FG mandates MDAs to remit 80% of their surplus

In from Ali Smart . . .
The Minister of Finance, Mrs Kemi Adeosun has impressed on ministries and departmental agencies (MDAs) the need to remit all operating surpluses to the federal government coffers as required by the law.

This move, according to her, became inevitable in view of the parlous state of the economy.
In a circular issued by the minister over the weekend, she stated that there are guidelines regarding budgeting, revenue and expenditure aimed at ensuring that MDAs remit revenue and generate operating surpluses which by law ought to be credited to the Consolidated Revenue Fund (CRF).

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The circular, the minister said is aimed at compelling Boards and Agencies who currently operate outside of budgetary control to comply with the law. Sec 22(2) of the Fiscal Responsibility Act (FRA) lists agencies including NPA, NIMASSA, NAFDAC, JAMB, NTA, NCC, CAC, NECO, who should remit 80% of their operating surplus into the Consolidated Revenue Fund.

Mrs Adeosun who stated that records show very poor compliance with the provisions of the Fiscal Responsibility Act, observed that some agencies have never credited the CRF despite having salary, capital and overhead financed by the federal government.

“Indeed, cost to income rates of 99.8% have been the average, meaning that they spend all their internally generated revenue and subventions released to them.”

The minister said such practices are not sustainable in any economic climate and with the current serious economic challenges being faced by Nigeria, can no longer be tolerated. Accordingly, all revenue generating agencies must comply with the circular and cut their costs.

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