The Federal Government has warned Ministries, Departments and Agencies (MDAs) that failure to prepare and submit their annual financial statements by December 31, 2025 will attract stiff sanctions, including the indefinite suspension of fund releases in 2026.
The warning was issued in a circular dated December 22, 2025, signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi.
According to the circular, any MDA that fails to prepare and render its separate (stand-alone) annual statement of accounts to the Treasury within the stipulated timeline will be denied access to government funds.
“Any MDA that fails to prepare and render its separate annual financial statements will have its release of funds suspended indefinitely, while a query shall be issued to the director or head of accounts and administration,” Ogunjimi stated.
The circular, titled “Guidelines of Financial Activities for End of the Year 2025,” also warned that defaulting agencies would face administrative sanctions at the leadership level.
Revenue Remittance, IGR Compliance
The Accountant-General 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 close of the financial year.
MDAs authorised to retain 50 per cent of their Internally Generated Revenue (IGR) were instructed to strictly comply with the finance circular issued on December 28, 2023, and remit the remaining 50 per cent to the TSA Sub-Recurrent Account.
Ogunjimi stressed the need for due diligence in revenue collection, utilisation, and remittance, noting that IGR reports must be uploaded on the Government Integrated Financial Management Information System (GIFMIS) to ensure accurate accounting records.
Operating Surplus Rules
For government-owned enterprises covered by the Fiscal Responsibility Act (2007), the circular reaffirmed that total budgetary expenditure must not exceed 50 per cent of gross revenue.
Agencies are further required to remit 80 per cent of the remaining 50 per cent as interim operating surplus into the TSA Sub-Recurrent Account.
Background
The Federal Government has repeatedly insisted that unspent funds must be returned to the Treasury at the end of each financial year, although compliance among MDAs has remained uneven.
The Fiscal Responsibility Commission (FRC) previously disclosed that over ₦5 trillion in operating surpluses was remitted between 2007 and 2024, but noted that the government lost more than ₦1.5 trillion due to non-compliance by some agencies.
Similarly, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has warned that MDAs that violate revised cash-planning and financial control policies risk having their capital funds blocked.
The latest directive signals a renewed push by the Federal Government to enforce strict financial discipline, transparency, and accountability across MDAs as the 2025 fiscal year comes to an end.
