The Federal Government has warned that it will impose strict sanctions on any ministry, department or agency (MDA) that fails to prepare and submit its financial statements to the treasury on or before December 31, 2025.
In a circular dated December 22, 2025, the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, stated that MDAs that do not render their stand-alone annual financial statements will face indefinite suspension of fund releases. In addition, the director or head of accounts and administration of the affected MDA will be formally queried.
The circular, titled “Guidelines of Financial Activities for End of the Year 2025,” also directed all MDAs to ensure that every revenue due to the Federation Account and the Consolidated Revenue Fund or TSA Sub-Recurrent Account is fully collected and properly accounted for.
MDAs authorised to retain 50 per cent of their internally generated revenue (IGR) while remitting the remaining 50 per cent to the TSA Sub-Recurrent Account were instructed to exercise due diligence in revenue collection, utilisation and remittance, in line with the finance circular issued on December 28, 2023. Reports of such transactions must be uploaded on the GIFMIS platform to ensure complete accounting records.
On operating surplus remittances, the circular ordered all government corporations, agencies and departments listed under the Fiscal Responsibility Act 2007 to restrict their total expenditure to 50 per cent of gross revenue. Of the remaining 50 per cent, 80 per cent must be paid into the TSA Sub-Recurrent Account as an interim or advance remittance of operating surplus.
The government reiterated its long-standing position that MDAs must return all unspent funds to the treasury at the end of each accounting year. Although the Fiscal Responsibility Commission disclosed that MDAs remitted over ₦5 trillion in operating surpluses between 2007 and 2024, it noted that more than ₦1.5 trillion was lost due to non-compliance by some MDAs.
Earlier in January, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, warned that non-compliance with the revised cash planning policy could result in the blockage of MDAs’ capital funds. Similarly, in July, the Office of the Accountant-General introduced stricter rules after observing a sharp rise in unretired advances and idle funds across MDAs, warning that defaulters risk sanctions or withdrawal of imprest privileges.
