By Yemi Akinsuyi
The Federal Government has initiated a stakeholders’ engagement and sensitization meeting to educate Ministries, Departments, and Agencies (MDAs) on the implementation of the extended 2024 and 2025 capital budget under the Bottom-Up Cash Planning Policy.
The meeting, which held on Wednesday, aimed at aligning the peculiarities of MDAs with the new process and ensure effective budget execution.
Addressing stakeholders, the Accountant General of the Federation, Shamseldeen Babatunde Ogunjimi, outlined the new operational process, which he said included MDAs preparing and submitting extended 2024 budget implementation plans and 2025 annual budget implementation plans, prioritizing government priority projects.
Ogunjimi said warrants/AIEs will be issued to guide MDAs on spending limits, and no new contracts can be awarded or capital payments processed without these documents. Copies of warrants/AIEs will be downloaded and attached to procurement documents as evidence of fund availability before contract award.
He stated that the implementation of the policy has been hindered by non-compliance with the Public Procurement Act and other extant regulations, resulting in financial commitments beyond projected cash flows.
“To address this, the Office of the Accountant General has consolidated outstanding cash plans, finalized payment requests, and reviewed the roles of Accounting Officers in the GIFMIS platform.
“The Federal Government has reaffirmed its commitment to funding the extended 2024 and 2025 capital budgets, prioritizing government priority projects. The stakeholders’ engagement and sensitization meeting aims to ensure that MDAs understand the new process and can effectively execute the budget”, he said.
Furthermore, the Accountant General noted that priority projects of the government have been left unattended to despite specific guidance given by the Budget Office of the Federation. He emphasized the need for MDAs to prioritize government projects and ensure that cash needs are aligned with budgetary provisions.
“The new operational process requires MDAs to prepare and submit budget implementation plans, prioritize projects, and obtain warrants/AIEs before awarding contracts or processing payments. The Accountant General assured that the Treasury has taken necessary steps to guarantee a hitch-free implementation of the new process”, he said.
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized the importance of prudent cash management in achieving meaningful development. He stated that warrants/AIEs would be issued to MDAs prior to legal commitment, serving as evidence of funds available for award of contracts or processing of payments. Edun urged MDAs to manage limited resources efficiently, optimize revenue realization, and avoid discretionary spending.
The Minister of Finance stated that efficient and prudent cash management is at the center of any meaningful development, particularly in a developing economy like Nigeria.
He urged MDAs to ensure that no letter of award is issued, contract signed, or financial obligation entered into without the corresponding warrants/AIEs covering the full or committed portion of the contract sum.
Edun said government is committed to ensuring that priority projects are implemented effectively, and that the new cash management policy will help to achieve this goal.
“The stakeholders’ engagement and sensitization meeting is a step towards ensuring that MDAs understand the new process and can effectively execute the budget. With the new policy in place, the Federal Government is confident that it can achieve its development goals and improve the lives of Nigerians.
“The stakeholders’ engagement and sensitization meeting marked a significant step towards effective budget execution and implementation of the Bottom-Up Cash Planning Policy.
“The Federal Government’s commitment to funding the extended 2024 and 2025 capital budgets and prioritizing government priority projects is a clear indication of its determination to drive development and growth in the country”, he stated.
