- Minister Wale Edun cautions MDAs to adhere to the revised cash management policy, threatening funding cuts for non-compliance in 2024
- The federal government plans to introduce automation systems in 2025 to enhance revenue collection and improve efficiency in MDAs
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has warned government ministries, departments, and agencies (MDAs) to follow the revised cash management policy or risk losing access to funds for capital projects.
Edun issued this warning during a one-day stakeholders’ review meeting on the revised cash management and bottom-up cash planning policies in Abuja.
He explained that President Bola Tinubu inherited the cash management policy in 2023, which has now been updated to improve efficiency and effectiveness.
However, he expressed concerns that some MDAs were not complying with the revised policy. Instead, they were bypassing the Government Integrated Financial Management Information System (GIFMIS), which led the government to suspend the platform temporarily.
“As a result, any MDA that does not adopt this policy will not receive funding for capital projects in the 2024 budget, which has now been extended to June,” Edun stated.
He also announced that the federal government will introduce new automation systems in 2025 to enhance revenue collection. He urged MDAs to embrace technology to boost internally generated revenue.
The Accountant General of the Federation, Oluwatoyin Sakirat Madein, emphasized that modifying the bottom-up planning approach was essential.
This adjustment ensures MDAs align with the administration’s technological initiatives.
She added that measures were in place to enforce compliance and finalize capital project payments.
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