Nigerian Government Cautions MDAs: Adhere to Cash Policy or Risk Losing Access to Capital Funds

The Federal Government has issued a stern warning to Ministries, Departments, and Agencies (MDAs) that failure to comply with the revised Bottom-Up Cash Planning Policy could lead to restrictions on their access to funds for capital projects.

The warning came from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a stakeholders’ review meeting in Abuja on Thursday. The meeting, organized by the Office of the Accountant-General of the Federation (OAGF), focused on ensuring strict adherence to the government’s fiscal policies and strengthening financial oversight.

Edun emphasized that the Bottom-Up Cash Planning Policy, introduced in 2023 and incorporated into the 2024 budget, aims to improve transparency, accountability, and efficiency in public financial management. However, he noted that some MDAs had been slow to adopt its operational guidelines, leading to temporary restrictions on their access to the Government Integrated Financial Management Information System (GIFMIS)—the central platform for fund disbursement.

“The implementation of the revised cash management and bottom-up cash-planning policy, as the Accountant-General has informed us, was approved by Mr. President and reinforced through multiple circulars and guidelines. However, there are concerns that some MDAs are still lagging in compliance,” Edun stated.

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“This necessitated a temporary block of access to the GIFMIS platform for some entities, which were later restored when they complied. 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 If you do not comply, then you will be withdrawn from accessing the funds that you need to implement your capital projects,” he warned.

Beyond cash management, Edun hinted at upcoming reforms in revenue generation, including increased automation and technology-driven solutions to boost Internally Generated Revenue (IGR). He reaffirmed the Tinubu administration’s commitment to fiscal discipline, stressing that government spending will be tied strictly to available revenue, avoiding excessive borrowing or money printing.

The Accountant-General of the Federation, Dr. Oluwatoyin Madein, also reaffirmed the government’s commitment to strengthening financial oversight and enforcing full compliance with the revised policy.

“You may recall the issuance of financial documents following Mr. President’s approval for the modification of the Bottom-Up Cash Planning Policy. This initiative was designed to provide a structured framework for the planning and management of limited cash resources, ensuring efficient service delivery,” Madein stated.

She further explained that, as part of the policy, capital project payments in 2024 are now centralized under the OAGF, requiring stakeholder engagement for smooth implementation.

“While we have recorded significant progress, some gaps and infractions have been observed. Some of these challenges have been addressed, while others are at various stages of resolution and will be highlighted in the course of this quarter”, she added.