Office of the Accountant-General of the Federation, OAGF, on Wednesday, engaged Federal Government accounting officers on new modalities to transit from the 2024 budget to that of 2025.

The briefing was at a stakeholders’ engagement with chief executives of Ministries, Departments, and Agencies (MDAs), on the implementation of the 2025 capital budget and related issues.

The Accountant-General of the Federation (AGF), Shamseldeen Ogunjimi, said that the Federal Government initiated the implementation of a cash management and bottom-up cash planning policy for the execution of the 2025 Capital Budget.

Ogunjimi said that this was to provide a set of rules and general guidelines for the conduct of government agencies for the planning and management of cash resources for effective service delivery.

According to him, efficient and proven cash management was at the centre of any meaningful development, particularly in a developing economy like ours.

“The policy is deployed to provide strategies for cash flow planning and management, such that inflows are realised, and there is value for money in public expenditure.

He said that in the course of implementing the policy, it was observed that some MDAs awarded contracts based on budgetary provisions without recourse to external laws and regulations.

The AGF said that there was a high propensity to award new contracts rather than completing ongoing critical projects, and transferring funds to vendors’ accounts even before the contracts are executed.

He said that there was a prevalence of non-realisation of targeted revenue, and in some instances, failure to remit revenue generated to the treasury.

“This government will not fold its hands to watch institutions and individuals saddled with real responsibility deliberately disregard extant laws and regulations in the award and execution of capital budget.

“It is now time for all of our stakeholders to rise up and ensure that relevant provisions of Public Procurement Act 2007, Fiscal Responsibility Act 2007 and other regulations are fully complied with,” he said.