The Nigerian government has issued a strong warning to ministries, departments, and agencies (MDAs) to comply with the revised cash management and bottom-up cash planning policies. Failure to do so could result in losing access to capital funding.
At a recent stakeholders’ review meeting, Finance Minister Wale Edun expressed concern that some MDAs were not following the updated cash management guidelines. These policies, approved by the President, aim to improve financial planning and ensure efficient use of government funds.
Due to non-compliance, some agencies were temporarily blocked from using the Government Integrated Financial and Management Information System (GIFMIS). Their access was only restored after they followed the rules. Edun made it clear that this enforcement would continue, stating that any agency failing to comply would lose access to funding for capital projects.
The Accountant General of the Federation, Oluwatoyin Sakirat Madein, explained that modifying the bottom-up cash planning policy was necessary to improve transparency in government spending. She highlighted that:
- The policy was designed to ensure MDAs manage limited resources efficiently.
- Operational guidelines were issued to help MDAs comply with the new rules.
- Capital project payments for 2024 would now be centrally managed to streamline disbursement.
She also noted that while significant progress had been made, some challenges still needed to be addressed to ensure smooth implementation.
The revised cash management policies aim to create better financial discipline within MDAs. By enforcing these rules, the government hopes to:
- Prevent financial mismanagement.
- Improve accountability in capital project funding.
- Ensure that funds are used efficiently for public services.
MDAs must fully adopt the new policies or risk losing funding, which could affect their ability to complete important projects.