Nigeria’s Minister of Finance, Wale Edun, has warned the federal government’s ministries, departments, and agencies to comply with the revised cash-management and bottom-up cash-planning policy or risk access to capital funding.

 

Edun issued this warning on Thursday at a one-day stakeholders’ review meeting on the implementation of the revised cash management and bottom-up cash planning policies for MDAs.

 

The Minister raised concerns that some MDAs were still lagging behind in embracing the operational guidelines as issued by the various bodies, including the accountant general of the federation.

 

According to him, the non-implementation of operational guidelines of the cash management policy was the reason some agencies were temporarily blocked from accessing the Government Integrated Financial and Management Information System, GIFMIS.

 

“The implementation of the revised cash management and bottom-up cash planning policy, as the AGF told us, was approved by Mr. President and was expanded with so many circulars and guidelines, having been initiated in 2023 for the capital projects.

 

“There are concerns raised that some MDAs are still lagging in their embracing of the operational guidelines as issued by the various bodies, including the accountant general’s of the federation, and this necessitated a temporary block of access to the GIFMIS platform for some entities that were subsequently 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 If you do not comply, then you will be withdrawn from accessing the funds that you need to use to implement your capital projects,” he said.

 

On her part, the Accountant General of the Federation, Oluwatoyin Sakirat Madein, explained that the modification of bottom-up planning was necessary to ensure that MDAs align with the transparency drive of the current administration.

 

“You may recall the issuance of finance documents following the approval of Mr. President for the modification of the bottom-up cash planning policy, initiated to provide a set of rules and general guidance for the conduct of government business in planning and management of limited cash resources for effective and efficient service delivery.

 

“Pursuant to that, strategic steps were taken, including the issuance of operational guidelines to guide ministries, departments, and agencies to ensure compliance.

 

“Part of the policy directing the finalisation of capital projects that lead to central disbursement of capital payments in the year 2024 from the Office of Accountant General of the Federation, which necessitated stakeholders’ engagement and solicitation for seamless implementation,

 

“I am glad to report that significant progress has been made. In the course of the implementation of the modified policy, some gaps and challenges were observed, some of which have been addressed, while others are at various stages of being resolved. Some of the challenges and infractions will be highlighted in the course of this quarter,” she stated.