Expenditure Division

The Functions of this division are:

  •  Cash backing of release to MDAs
  • Maintenance of adequate records and control of recurrent releases
  • Local Debt and Pension Payments
  • Raising of Mandates for FGN Bonds. Pre-shipment and Destination Inspections
  • Production of public Debt Statements.

The Recurrent Expenditure branch is further divided into sections – Recurrent

Expenditure and loan Servicing.

2.      Capital Expenditure Branch

The capital expenditure branch has the responsibility of performing any of the function listed below.

a.       Raising of Capital Expenditure Mandate

b.      Opening of new accounts and change of signatories Accounts

c.       Correspondence with MDAs on capital Expenditure related matters.

d.      Report and Investigation to Management

e.       Report and Investigation to external bodies on request

Preparation of Budget performance.


3.      Recurrent Expenditure

i.       The key function of this unit is the processing of personnel costs and overhead releases to the Ministries, Extra-ministerial Departments and Agencies (MDAs) as per relevant Warrants as approved by the Honourable Minister of Finance.

ii.      The unit also processes payments of pension arrears to both military and civilian pensioners as well as the payment of severance benefits to right-sized staff of the Federal Government and parastatals.

iii.     It is also responsible for the payments of local contractors’ liabilities as well as payments from some designated accounts such as UNAMSIL account a may be approved by the president.

iv.     The unit also prepared report on Recurrent budget expenditure as may be requested by FMF, NASS, EFCC, FCPC and other users as may be approved.

v.      During the year, additional MDAs were enrolled into the lntegrated Personnel Payroll Scheme (IPPIS). Processing of employees salary and remittance of deductions to third parties were effected as at when due.

4.      Loan Servicing

i.       This unit is responsible for the processing of payments in respect of external debts in favour of various categories of creditors.

ii.      The unit also prepares statutory Public debt Statements for inclusion in the Federal government of Nigeria Consolidated accounts statutorily submitted to the Auditor-General of the Federation annually.

iii.     The unit handles processing of payments of service fees to the nations Destination Inspection Agents for imports as well as the Pre-shipment Agents for exports.

iv.     The unit also participates in the monthly reconciliation of external debt payments after which the Honourable Minister of Finance is duly advised.

v.      Receives requests for payment from Debt Management Office.

5.      Fiscal Account Division

The Fiscal Account Division has the responsibility of performing any of the function listed below.

  • Cash Management and preparation of Fiscal Accounts
  • Rendition of Budget Performance reports
  • Reconciliation of CRF, Fed Acct.
  • Reconciliation of cash backing with budgetary releases
  • Monthly reconciliation of Mandates
  • Preparation of Cash Flow projection (CRF)

6.      Federation Account Division

This Division has two sections which are: FAAC Technical Committee Secretariat and Federation & Special Accounts, the primary Function are:

i.       To distribute the revenue accruing into the Federation among the three tiers of Government, using the sharing formula and indices as provided by Revenue Mobilization Allocation and Fiscal Commission (RMAFC).

ii.      The Division also maintains another separate Account with Central Bank of Nigeria called Value Added tax (VAT) Account which warehouses VAT on both imported and non-imported goods.

iii.     The Division maintains other Special Accounts which are:

(a)     1.46% Derivation and Ecology Account

(b)     0.5% Stabilization Account.

(c )    3.0% Development of Natural Resources Account

(d)     Excess Crude Account (Foreign and Domestic)

(e)     OAGF/CBN (Emergency Power Project Dollar Account).


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