The minister of finance and coordinating minister of the economy, Mr Wale Edun has said again that the federal government is committed to maximum overhaul of the nation’s economy to improve the lives of Nigerians. Speaking at the Abuja event, the minister said Nigeria is now on the road to reform and transparency, adding, “We must be determined that even though we could not do it yesterday, we will definitely do it tomorrow. He therefore urged the accounting officers at the workshop to embrace the financial reforms of the government for national good.

This is as the government has concluded in the revised policy on cash management that any amounts held in the Treasury Single Account (TSA) system not immediately needed will be invested in interest-yielding deposits. To do that, the AGF will direct the Central Bank of Nigeria (CBN) to invest idle cash balances in short-term instruments at the ruling or competitive rate.

The revised cash management policy among other things stipulate that all MDAs will now have to submit their monthly expenditure needs for consolidation by the funds department (cash management unit) at the OAGF headquarters; monthly cash payment needs will now be based on capital commitments to be settled in the month as well as recurrent needs for the specific month.

It also provides that capital and overhead cash needs will henceforth be based on legal and financial commitments that is in line with the approved cash plan entered in GIFMIS. Where actual commitments do not support expenditure needs, the MDA cash plan (outflows) would be reduced without recourse to the MDA in question accordingly.

The new policy provides strategies for cash flow planning and management such that inflows are realisable, outflows controlled and there is value for money in public expenditure, avoiding discretionary spending, minimising deficits, and borrowing within limits as well as investment of excess and/or idle cash.

It focuses attention on a strategy that ensures government commitment to budget implementation, effective public expenditure funding and management and strategies for the investment of idle cash and financing of gaps when they occur.