The Federal Government has warned ministries, departments and agencies (MDAs) that failure to prepare and submit their financial statements by December 31, 2025, will attract sanctions, including the suspension of funds in 2026.
The warning was contained in a circular dated December 22, 2025, signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi.
According to the circular, any MDA that fails to prepare and submit its stand-alone annual financial statements to the Treasury will have its funding suspended indefinitely and may face administrative sanctions at the leadership level.
“Any MDA that fails to prepare and render its separate annual financial statements will have its release of funds suspended indefinitely, while a query will be issued to the director or head of accounts and administration,” Ogunjimi stated.
The circular, titled Guidelines on Financial Activities for the End of the 2025 Financial Year, directed all MDAs to ensure that all revenues due to the Federation Account and the Consolidated Revenue Fund/TSA Sub-Recurrent Account are fully collected and properly accounted for before the year ends.
MDAs authorised to retain 50 per cent of their gross internally generated revenue (IGR) were also instructed to remit the remaining 50 per cent to the TSA Sub-Recurrent Account, in line with the finance circular issued on December 28, 2023.
Ogunjimi stressed the need for due diligence in revenue collection, utilisation and remittance, adding that detailed reports must be uploaded on the Government Integrated Financial Management Information System (GIFMIS) to ensure accurate accounting records.
On operating surpluses, the Accountant-General directed corporations and agencies covered by the Fiscal Responsibility Act 2007 to limit their total expenditure to 50 per cent of gross revenue and remit 80 per cent of the balance into the TSA Sub-Recurrent Account as interim operating surplus.
The government reiterated that unspent funds must be returned to the treasury at the end of every financial year, noting that compliance among MDAs has been inconsistent.
Data from the Fiscal Responsibility Commission show that over ₦5 trillion in operating surpluses was remitted between 2007 and 2024, while more than ₦1.5 trillion was reportedly lost due to non-remittance by some agencies.
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has also warned that MDAs that fail to comply with revised cash-planning guidelines risk having their capital funds blocked.
In July, the Office of the Accountant-General introduced tighter financial controls following a rise in unretired advances and idle cash balances across MDAs, warning that further violations could lead to the withdrawal of imprest privileges and additional sanctions.
The latest directive signals a renewed drive by the Federal Government to enforce stricter financial accountability as the 2025 financial year comes to an end.
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