By Bassey Udo
Strict compliance with the revised Bottom-Up Cash Planning Policy is a mandatory requirement for accessing funds to execute capital projects, the Federal Government has warned.
Speaking on Thursday at the Stakeholders’ Review Meeting on the Implementation of the Revised Policy on Cash Management and Bottom-Up Cash Planning in Abuja, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that Ministries, Departments, and Agencies (MDAs) would be sanctioned for failure to comply with the policy by restricted them from further funding for their projects.
The meeting organised by the Office of the Accountant General of the Federation (OAGF) was attended by heads of Federal MDAs and parastatals across the country.
The Minister noted that the bottom-up cash policy, introduced in 2023 and integrated into the 2024 budget process by the present administration, was designed to enhance transparency, accountability, and efficiency in public financial management.
Edun pointed out that some MDAs were slow to adopt and key into the policy’s operational guidelines, necessitating temporary restrictions on their access to the Government Integrated Financial Management Information System (GIFMIS), the platform for fund disbursement.
“There are concerns raised that since the implementation of the revised cash-management and bottom-up cash-planning policy was initiated in 2023 approved by Mr. President for capital projects some MDAs are still lagging behind in their embracing of the operational guidelines as issued by the various bodies, including the Office of the Accountant General of the Federation. This necessitated a temporary blockage of access to the GIFMIS platform for some entities that were subsequently restored when they complied with the policy.
“If you do not comply with the requirement of the policy, then you will be withdrawn from accessing the funds you need to use in implementing your capital projects,” the Minister warned.
Beyond cash management, the Minister hinted at upcoming reforms in revenue generation in the MDAs, which will involve increased automation and technology adoption to enhance internally generated revenue (IGR).
He reaffirmed the present administration’s commitment to fiscal discipline, adding that government spending would be tied strictly to available revenue, without resorting to excessive borrowing or printing of money.
In her remarks, the Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein, said the government was committed to strengthening financial oversight and ensuring compliance with the revised policy.
Madein said while significant progress has been made since the commencement of the implementation of the policy, some gaps and challenges have remained, which the government was actively working to resolve.
She said the issuance of finance documents following Mr. President’s approval for the modification of the bottom-up cash planning policy, was initiated to provide a set of rules and general guidelines for the conduct of government business in planning and management of limited cash resources for effective and efficient service delivery.
Pursuant to that, the AGF said strategic steps were taken, including issuance of operational guidelines to guide ministries, departments, and agencies to ensure compliance.
Part of the policy, the AGF said, was directing the finalization of capital projects that led 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,
She said although some gaps and challenges were observed in the course of the implementation of the modified policy, significant progress has been made. With some of the challenges addressed, while others are at various stages of being resolved.
Some of the challenges and infractions, she assured, would be highlighted in the course of this quarter.
