Economic Downturn: Management Of Funds Entails Forecasting Challenges – AGF-Idris

BY GLORIA USMAN, ABUJA – The Accountant General of the Federation, Mr Ahmed Idris, has said that the management of funds is not only concerned with expending the available funds but knowing how to ensure inflows, forecast into the unforeseeable future as well as plan on the cash needs of the government and possible challenges.

Speaking against the backdrop of the world economic downturn occasioned by the COVID-19 pandemic, Idris therefore advocated an efficient management of government funds.

Idris noted that there is an increasing pressure on government funds which makes it imperative for managers of government funds to evolve strategies and promote useful knowledge that will guarantee efficient cash management.

Idris, who stated this in an address at the 2021 retreat for members of the technical sub-committee on cash management at Gora, Nasarawa State.

The AGF, who was represented by the Director of Inspectorate Department in the OAGF, Anamekwe Chukwunyere, commended the initiative of the organisers and expressed optimism that the three-day retreat will discuss critical issues posing great challenges to public financial management practices and evolve feasible, sustainable solutions for them.

The technical sub-committee on cash management, is the professional arm of the Federal Cash Management Committee.

According to the AGF; “Among other functions, the technical sub-committee obtains stakeholders’ inputs, deliberates on them and makes proposals to the Federal Cash Management Committee for approval regarding the payment of personnel costs, pension/gratuities as well as statutory transfers”.

He noted that the theme of the retreat, ‘Advancing the operational efficiency for effective liquidity and cash management in Nigeria: beyond rhetoric’, is a clear message for all entrusted with the management of government funds to be up and doing and go beyond rhetoric in cash management practice as the traditional rule of the thumb and/or cash rationing approach cannot drive the nation’s economy.

Also speaking, the Director of Fund in the OAGF, Mr Sabo Mohammed said the office of the Accountant General is positioned to drive the policy and has been able to deliver on its mandates, despite the Covid-19 pandemic.

Mohammed stressed that the Sub-Committee functions are very critical to Treasury Management because it obtains stakeholders input, deliberate on them and make proposals for approval for the payment of personal costs, adding that it also deliberates on pension and gratuities as well as statutory transfer to the Federal Cash Management.