The Federal Government has warned Ministries, Departments, and Agencies (MDAs) that failure to comply with the revised Bottom-Up Cash Planning Policy may result in restrictions on their access to funds for capital projects.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, gave the warning on Thursday at the stakeholders? review meeting on the implementation of the Revised Policy on Cash Management and Bottom-Up Cash Planning in Abuja.

The meeting, organised by the Office of the Accountant General of the Federation (OAGF), focused on strengthening financial oversight and ensuring strict adherence to the new fiscal policies.

Edun explained that the Bottom-Up Cash Planning Policy, introduced in 2023 and incorporated into the 2024 budget, was designed to enhance transparency, accountability, and efficiency in public financial management.

However, he noted that some MDAs had been slow to adopt its operational guidelines, leading to temporary restrictions on their access to the Government Integrated Financial Management Information System (GIFMIS), the central platform for fund disbursement.

?The implementation of the revised cash management and bottom-up cash-planning policy, as the Accountant-General has informed us, was approved by Mr. President and reinforced through multiple circulars and guidelines. However, there are concerns that some MDAs are still lagging in compliance,? Edun stated.

?This necessitated a temporary block of access to the GIFMIS platform for some entities, which were later 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 If you do not comply, then you will be withdrawn from accessing the funds that you need to implement your capital projects,? he warned.

Beyond cash management, the Minister hinted at upcoming reforms in revenue generation, with increased automation and the adoption of technology to boost internally generated revenue (IGR).

He insisted on the Tinubu administration?s commitment to fiscal discipline, stressing that government spending will be strictly tied to available revenue, without resorting to excessive borrowing or money printing.

The Accountant-General of the Federation, Dr. Oluwatoyin Madein, also reiterated the government?s commitment to strengthening financial oversight and ensuring full compliance with the revised policy. She noted that while significant progress had been made, some challenges remain, which the government is actively addressing.

?You may recall the issuance of financial documents following Mr. President?s approval for the modification of the Bottom-Up Cash Planning Policy. This initiative was designed to provide a structured framework for the planning and management of limited cash resources, ensuring efficient service delivery,? Madein stated.

?As part of the policy, capital project payments in 2024 are now centralized under the Office of the Accountant-General of the Federation, requiring stakeholders? engagement for seamless implementation.

?While we have recorded significant progress, some gaps and infractions have been observed. Some of these challenges have been addressed, while others are at various stages of resolution and will be highlighted in the course of this quarter,? she added.

The government?s renewed focus on enforcing compliance with cash management policies points to its broader efforts to instill fiscal discipline and optimize resource allocation for national development. (The Nation)

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