In a new move to tackle revenue shortfalls in agencies, the federal government now requires heads of Government-Owned Enterprises to meet fiscal targets to keep their positions.
Announced on February 2, 2026, during a Budget 2026 training session for ministries, departments, and agencies, the new shift makes hitting revenue targets a key responsibility.
The 2026–2028 Medium-Term Expenditure Framework (MTEF) shifts the government’s focus from aspirational targets to accountability through measurable consequences.
GOE heads are legally obligated to meet revenue targets, which will impact their performance evaluations and institutional scorecards. To professionalise revenue collection and ensure payment tracking and verification, the government is deploying a centralised digital “Federal Treasury Receipt” system alongside the National Tax Acts.
The policy change comes in response to a challenging fiscal landscape, with the government projecting a ₦25.27 trillion budget deficit for 2026. To support a ₦58.47 trillion expenditure plan, authorities are relying on a projected ₦33.20 trillion in revenue, much of which must be generated by these enterprises.
Tanimu Yakubu, Director General of the Budget Office, described the 2026 budget as following a “single train” approach, an execution logic that eliminates hidden obligations and fragmented lists, which have undermined accountability in previous years.
To ensure GOEs meet their fiscal obligations, several administrative measures were highlighted during the training. A central billing system that will standardise pricing and billing for government services, closing gaps that have historically allowed revenue leakages. An agency-by-agency audit is underway to review staffing, expenditure patterns, and operational efficiency, with privatisation being considered for underperforming functions. Increased transparency is also being demanded in sectors such as oil and gas to curb under-reporting and strengthen fiscal oversight.
The message to GOE leaders is unambiguous: the Federal Government is committed to fully funding agency budgets in 2026, but such funding is conditional on revenue performance. “If it cannot be measured, it should not be defended,” Yakubu stressed, signalling a new era of accountability and fiscal discipline for government enterprises.
This move represents a clear departure from past practices, positioning revenue generation and transparency as non-negotiable pillars of government operations. It underscores a broader commitment to professionalising public sector management and ensuring that government resources are utilised efficiently to meet national development goals.
