Overview

The 2021 Appropriation Act Implementation Guidelines, issued by the Federal Ministry of Finance, Nigeria, on 10th March 2021, provide directives for all Ministries, Departments, and Agencies (MDAs) to ensure strict adherence to the 2021 budget implementation. Key points include: (1) MDAs must commence procurement planning immediately to sustain the January-December fiscal calendar, with no extension for capital budget implementation beyond December 2021. (2) MDAs are directed to submit monthly Expenditure Plans for the full year to the Budget Office of the Federation (BOF) and the Office of the Accountant General of the Federation (OAGF) to guide cash planning. (3) Disbursement of funds will follow the annual cash plan prepared by the OAGF in accordance with the Fiscal Responsibility Act (FRA) 2007, with the Honourable Minister of Finance, Budget and National Planning (HMFBNP) required to publish a Disbursement Schedule within 30 days of the Appropriation Act's enactment. The cash plan will be reviewed monthly by the Cash Management Committee and adjusted after Federal Accounts Allocation Committee (FAAC) meetings, with any adjustments requiring HMFBNP approval. (4) Full compliance with the Treasury Single Account (TSA) policy is mandated; MDAs authorized to retain Internally Generated Revenues (IGR) must stay within approved limits for sub-account access, with sanctions for non-compliance. (5) Capital expenditure releases will be project-tied, based on government priorities and resource availability, and will largely depend on MDAs' monthly Budget Performance Reports and Monitoring & Evaluation reports, though all projects in the Appropriation Act must be implemented subject to fund availability. (6) MDAs are advised against seeking Presidential or Federal Executive Council approvals for new projects not in the Appropriation Act or additional funding for existing projects without prior consultation with the HMFBNP on fund availability and appropriate vote of charge. (7) Greater efficiency in managing personnel costs will be pursued to minimize MDAs locked out of the Integrated Personnel and Payroll Information System (IPPIS) and eliminate unjust payments.

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