News

February 9, 2023

FG begins Bottom-Up Cash Planning tomorrow

FG begins Bottom-Up Cash Planning tomorrow

…To track MDAs’ expenditures

Emma Ujah, Abuja Bureau Chief

The federal government will commence the implementation of its Bottom-Up Cash Planning initiative tomorrow.

The Ag. Accountant-General of the Federation (AGF), Mr. Sylva Okolieaboh, disclosed this at a just-concluded sensitization programme in Abuja.

He said that the initiative was being adopted as one of the best strategies to address cash management challenges of the federal government and as part of its Public Financial Management (PFM) reforms.

According to him, “Shortly after the pilot roll-out of the Government Integrated Financial Management Information System (GIFMIS) alongside the Treasury Single Account in April 2012, the process of implementing an efficient cash management system commenced.

“Unfortunately, that process has witnessed many unforeseen delays over ten years of hiatus; but fortunately today, we are witnessing its actualization.

“Bottom-up cash planning, as the name suggests, is the collection and aggregation of government cash needs through the individual spending units. As part of the overall government cash management arrangement, it facilitates the optimal allocation and utilization of government cash resources.”

The Ag. AGF identified other objectives to include: “minimising the costs of holding cash balances; reducing risk (operational, credit and market risk); adding flexibility to the ways in which the timing of government cash inflows and outflows can be matched; and supporting other financial policies.”

He said that the implementation of Bottom-Up Cash Planning would bring more certainty to budget execution; and engender fiscal discipline.

Mr. Okolieaboh said that a Treasury Circular was issued on February 2, 2023, notifying MDAs of the Go-Live date of 10th February, 2023, describing the sensitization programme as one of the pre-go-live activities.

According to him, “This sensitization event is meant to rally all Directors and Heads of Finance and Accounts towards ensuring the success of the policy because of their critical roles in the implementation of this important project.

“We can only succeed if everyone of us does his own part. Indeed, the success of the bottom-up cash planning policy will rely heavily on your ability and willingness to play your own part. Being bottom-up, the process starts effectively with you.

“Under the direction of your respective Accounting Officers, your specific roles include: constitution of in-house Cash Management Committees; sending details of your focal persons to the Office of the Accountant-General of the Federation; submission of your role players to be profiled on the GIFMIS platform; and using the full GIFMIS functionality from procurement to payment.

“Today’s event is a defining moment for all of us gathered here. We are on the verge of history: the journey of over two decades is coming to completion in a few days.”