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CROSS RIVER – FINANCE (CONTROL AND MANAGEMENT) LAW

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LAWS OF CROSS RIVER STATE

CHAPTER F2

FINANCE (CONTROL AND MANAGEMENT) LAW

ARRANGEMENT OF SECTIONS

PART 1

Establishment of Certain Funds and Accounts

SECTION

  1. Consolidated Revenue Fund.
  2. Establishment and purposes of Capital Development Fund.
  3. Composition of the Capital Development Fund.
  4. Retention of balances of Capital Development Fund.
  5. Establishment of certain accounts.
  6. Operation of General Deposits Account.
  7. Accounting transactions. Treasury Clearance Account.
  8. Rules.

PART 2

Control of Expenditure

  1. Supervision of expenditure and accounts by the Commissioner.
  2. Management of Consolidated Revenue Fund.
  3. Authority to incur expenditure.
  4. Authorised expenditure from Consolidated Revenue Fund.
  5. Repayment of erroneous receipts.
  6. Losses.
  7. Investments.
  8. Authorisation of investments.
  9. Procedure concerning Investments General.
  10. Income of Investments General.
  11. Fluctuation in value of Investments General.
  12. Provision of Appropriation Law not in force.
  13. Payment of agents.
  14. Trading Accounts.

PART 3

Contingencies Fund

  1. The Contingencies Fund.
  2. Use of Contingencies fund to meet unforeseen expenditure.
  3. Repayments to Contingencies Fund.
  4. Power to make rules.

PART 4

Citation and Interpretation

SECTION

  1. Interpretation.
  2. Citation.

FIRST SCHEDULE

Funds and Accounts Established

SECOND SCHEDULE

Accounting Transaction Authorised

CHAPTER F2

FINANCE (CONTROL AND MANAGEMENT) LAW

(28th November, 1970)

[Commencement]

A Law to provide for the control and Management of the Public Finance of Cross River State, for the Establishment of certain Public Funds and Accounts and to regulate disbursement from such Funds and for other purposes connected with such Funds and Accounts or incidental thereto.

PART 1

Establishment of Certain Funds and Accounts

“statutory expenditure” means—

(a)     the expenditure charged on the Consolidated Revenue Fund by any provision of the Constitution; and

(b)     such other expenditure as may by law (other than an Appropriation or Supplementary Appropriation Law) be charged on the Consolidated Revenue Fund or the general revenue and assets of the State, or on the other public funds of the State, as the case may be; “the State” means Cross River State.

  1. Consolidated Revenue Fund

It is hereby declared that the fund known as the Consolidated Revenue Fund maintained by the Accountant-General since the 1st day of April, 1968, and still to be maintained by him, is the Consolidated Revenue Fund of the State established by section 167 of the Constitution.

  1. Establishment and purposes of Capital Development Fund

(1)     There is hereby established a fund to be known as the Capital Development Fund.

(2)     The purposes of the fund are to meet expenditure authorised in an Appropriation or a Supplementary Appropriation Law in respect of a development plan or development programme from time to time approved under either name, by the Executive Council.

(3)     For the avoidance of doubt it is hereby declared that expenditure of a recurrent nature shall not be met from the fund.

(4)     In so far as circumstances require, all documents relating to the fund shall account for, separately—

(a)     all contributions to; and

(b)     all expenditure from the fund.

  1. Composition of the Capital Development Fund The Capital Development Fund established under section 2 of this Law shall consist of the following, that is to say—

(a)     proceeds of the Development Fund portion of the State’s Development Tax;

(b)     all moneys accruing to the State from the following sources—

(i)      proceeds of the five per cent Compulsory Savings Scheme and of any other loans raised within or outside the State by the State Government for development purposes;

(ii)     the State’s share of Federal Development Loan;

(iii)    grants made to the State for capital development purposes by any person, institution or government;

(iv)    moneys appropriated by the Executive Council for Capital Development Expenditure from the Consolidated Revenue Fund of the State; and

(v)     such other moneys as the Commissioner may prescribe.

  1. Retention of balances of Capital Development Fund

At the close of each financial year all receipts, earnings, accruals or balances of the Capital Development Fund shall be retained for the purposes of the said fund, and shall not, unless the Commissioner otherwise directs, be paid into the Consolidated Revenue Fund.

  1. Establishment of certain accounts

(1)     The accounts set out in the first column of the First Schedule to this Law are hereby established.

(2)     The Commissioner may by warrant under his hand authorise the Accountant-General to withdraw from the Consolidated Revenue Fund such sums as may be necessary for the purposes of the accounts established under this section.

(3)      The amount withdrawn from the Consolidated Revenue Fund in respect of each of the said accounts shall not at any time exceed the amount set out opposite each account in the second column of the First Schedule to this Law.

(4)     No disbursements which are in the nature of final expenditure properly chargeable to the Consolidated Revenue Fund or to the Capital Development Fund shall be charged to the said accounts.

(5)     The Executive Council may by order in writing published in the State Gazette alter, amend or vary the First Schedule to this Law.

  1. Operation of General Deposits Account

Moneys which come into possession of the Government of the Sate but which are not due to the said Government and are held on behalf of other persons, institutions, corporate bodies or Governments, shall accrue to the General Deposits Accounts established under section 5 (1) of this Law.

  1. Accounting transactions. Treasury Clearance Account

(1)     The Accountant-General may from time to time enter into accounting transactions with any or all of the persons, institutions, corporate bodies and Governments specified in the Second Schedule to this Law.

(2)     Any accounting transactions entered into in accordance with the provisions of this section shall be by way of the Treasury Clearance Account established under section 5 (1) of this Law.

(3)     The Commissioner may by order under his hand alter, amend or vary the contents of the Second Schedule to this Law.

  1. Rules

The Commissioner may make rules the better to implement the purposes of the funds and accounts established by this Law.

PART 2

Control of Expenditure

  1. Supervision of expenditure and accounts by the Commissioner

(1)     The Commissioner shall so supervise the expenditure and finances of the State as to ensure that adequate arrangements are made for accounting to the Legislature and for such purpose shall have power to direct what accounts shall be kept.

(2)     All persons concerned in or responsible for the collection, receipt, custody, issue or payment of public moneys, stores stamps, investments, securities, or negotiable instruments, whether the property of Government or on deposit with or entrusted to Government or any public officer in his official capacity either alone or jointly with any public officer or any other person, shall obey all instructions that may from time to time be issued by the Commissioner or by direction of the Commissioner in respect of the custody and handling of the same and accounting therefore.

(3)     The Permanent Secretary, or other officer of the Ministry of Finance, shall have such access to all documents and records as may be necessary for the exercise of the Commissioner’s powers under this section.

  1. Management of Consolidated Revenue Fund

The management of the Consolidated Revenue Fund shall be conducted in accordance with the provisions of this Law and any other Law in force.

  1. Authority to incur expenditure

(1)     No expenditure involving a charge on the Consolidated Revenue Fund shall be incurred, except under the authority of a warrant sanctioned by the Commissioner.

(2)     No disbursement from the Capital Development Fund shall be made except by the authority of a warrant signed by the Commissioner.

(3)     No warrant for the disbursement of moneys from the Capital Development Fund shall be signed or issued by the Commissioner unless the expenditure to which the warrant relates      has been authorised in an Appropriation or Supplementary Appropriation Law of the State.

  1. Authorised expenditure from Consolidated Revenue Fund

(1)     The Commissioner may by warrant authorise the issue from the Consolidated Revenue Fund of all sums required to meet statutory expenditure or to meet the cost of any purpose to which any sum has been appropriated in accordance with this or any other Law: Provided that any such sum in respect of expenditure other than statutory expenditure shall not exceed the total amount appropriated for the purpose.

(2)     The Commissioner may limit or suspend expenditure notwithstanding that authority for such expenditure has been given by a warrant if, in his opinion, financial exigencies or the public interests so require: Provided that this subsection shall not convey authority to withhold payments in respect of statutory expenditure.

  1. Repayment of erroneous receipts

The Commissioner may by warrant authorise the repayment from the Consolidated Revenue Fund of sums received in error by that Fund and any such repayment shall be a charge on the Fund.

  1. Losses

Where a loss has occurred of any moneys forming part of the Consolidated Revenue Fund, or it is necessary to make a further issue there-from in respect of moneys already issued there-from which have been misappropriated or lost, or it is necessary to make an issue there-from to effect the replacement of any Government property which has been misappropriated or lost, then subject to any express provision of this or any other Law an adjustment of the Fund or an issue from the Fund for such purpose shall only be effected by the issue of a warrant by the Commissioner under the authority of an Appropriation or Supplementary Appropriation Law.

  1. Investments

The investment of moneys contained in the Capital Development Fund shall be governed by sections 18 to 21 of this Law.

  1. Authorisation of investments

(1)     The Consolidated Revenue Fund, and any other public fund of the State subject to any express provisions of Law regulating any such public fund, may in part consist of deposits with a bank, or with the Joint Consolidated Fund, either at call or subject to notice not exceeding six months, or of any investments in which a trustee in Nigeria may lawfully invest trust funds, and the disposition of moneys of the Consolidated Revenue Fund or of such other public fund for any such purpose shall need no legislative authority other than that contained in this section and may be made by the Accountant-General or the Crown Agents in accordance with any general or special instructions issued by the Commissioner.

(2)     No moneys deposited or invested otherwise than in accordance with subsection (1) may form part of the Consolidated Revenue Fund, or of any other public fund of the State, and the disposition of any moneys from that Fund or those funds for any purpose other than the form of deposit or investment specified in that subsection shall be made in accordance with the procedure prescribed in this Law or in accordance with the provisions of law regulating the fund in question.

  1. Procedure concerning Investments General

(1)     The Accountant-General shall maintain under the designation of Investments General a record of certain investments.

(2)     Investments General shall consist of—

(a)     those investments forming part of Consolidated Revenue Fund by virtue of section 18 of this Law;

(b)     any investments held in respect of moneys being part of the Contingencies Fund as described in section 25 of this Law, or any law superseding the same;

(c)     such investments held in respect of the public funds of the State as the Commissioner shall designate in writing: Provided that the Commissioner shall not designate any fund in respect of which by virtue of the provisions of law regulating such fund neither the receipts and outgoings nor the appreciation and depreciation of the investments forming part of the fund may accrue or does accrue to the Consolidated Revenue Fund.

  1. Income of Investments General

(1)     All income accruing to Investments General shall accrue to the Consolidated Revenue Fund and shall be included in the annual statement of revenue of the State for each financial year.

(2)     This section shall commence to take effect in respect of investments included in the record of twelve months ending the 31st day of March, 1969, and in respect of all interes accruing within such period.

  1. Fluctuation in value of Investments General

(1)     The Accountant-General shall in each year value any securities forming part of Investments General by assigning thereto the middle market price of such securities at the close of business on the last day in the year for which such information is available.

(2)     Any appreciation or depreciation arising from the valuation of such securities, together with any profits or losses arising from the sale of redemption of such securities, shall be credited or debited direct to the Consolidated Revenue Fund, and be shown as an addition to or deduction from the opening balance of the Consolidated Revenue Fund in the annual statement of assets and liabilities of the State.

  1. Provision if Appropriation Law not in force

(1)     If the Appropriation Law has not come into operation at the commencement of any financial year, the Commissioner may authorise by warrant the issue from the Consolidated Revenue Fund of such moneys as are necessary for carrying on the services of the Government at a level of those services prevailing in the previous financial year for a period of four months or until the Appropriation Law comes into operation whichever is shorter.

(2)     Any moneys so authorised to be issued shall not exceed the sum specified for such service in the estimates presented for the current year and shall be set off against the amounts respectively provided in the Appropriation Law upon the same coming into operation.

  1. Payments by agents

(1)     It shall be lawful for the Commissioner to appoint agents outside the State to make payments on behalf of the government and to issue instructions from time to time respecting the making of such payments.

(2)     Subject to any instructions issued by the Commissioner aforesaid, no payment by such agent in respect of contractual obligation is to be restricted by the fact that its financial authority has lapsed with the close of the financial year.

  1. Trading Accounts

(1)     The Commissioner may authorise, in the case of Ministries engaged in commercial or semi-commercial activities, the establishment of accounts to be known as Trading Accounts to which all expenditure (including that on Personal Emoluments) incurred and all revenue received for the purpose for which the said Trading Accounts are established, shall be debited or credited as the case may be.

(2)     In the preparation of the Estimates and of the Appropriation Bills account shall be taken of the net balance only of any such Trading Account as may have been established in pursuance of subsection (1) of this section.

PART 3

Contingencies Fund

  1. The Contingencies Fund

The Commissioner may direct the payment into the Contingencies Fund established under section 7 of this Law of such sums as are appropriated for the purpose by the Legislature of the State.

  1. Use of the Contingencies Fund to meet unforeseen expenditure

(1)     Where any expenditure required for the Public Service is urgently needed at a time when the House of Assembly is in recess, or when for any other reason it is impracticable immediately to obtain the authority required under the Constitution and any other Law in force for meeting the expenditure out of the Consolidated Revenue Fund or other public funds, the Commissioner may issue a warrant authorising advances from the Contingencies Fund for the purpose of meeting the said expenditure.

(2)     No money shall be advanced from the Contingencies Fund except under the authority of a warrant issued pursuant to subsection (1) of this section.

  1. Repayments to Contingencies Fund

(1)     As the Commissioner has issued a warrant under section 24 of this Law authorising advances from the Contingencies Fund, a proposal for the appropriation of an equal amount from the Consolidated Revenue Fund or other public funds shall be submitted to the Legislative Houses of the State beginning next after the date when the warrant was issued or, if the warrant was issued during a meeting of the Legislative Houses of the State and the Commissioner so directs, then at that meeting.

(2)     A proposal submitted under this section shall be for appropriation of the said amount to the various heads of expenditure under which the expenditure would have been incurred if it had been incurred under the authority of a warrant issued by virtue of an Appropriation Law, instead of being met from the Contingencies Fund.

(3)     So soon as may be after a proposal made under this section has received the approval of the Legislative House of the State, and a warrant has been issued by virtue of such approval, the amounts advanced from the Contingencies Fund shall be repaid to the said Fund by adjustment from the said heads of expenditure.

  1. Power to make rules

Subject to the provisions of this Law, the Commissioner may make rules for the proper and efficient administration of the Fund; such rules shall be presented for the information of the Legislative House of the State.

PART 4

Citation and Interpretation

  1. Interpretation

In this Law—

“the Accountant-General” means the Accountant-General of the Cross River State;

“Appropriation Law” means the Law enacted in each year the principal purpose of which is the appropriation of public moneys for such services as are specified in such Law;

“Consolidated Revenue Fund” means the Consolidated Revenue Fund of the State established by section 56 of the Constitution of the State; “Legislative House” means the House of Assembly of the State;

“the Commissioner” means the State Commissioner charged with responsibility for matters relating to finance;

“the Constitution” means the Constitution of the Federal Republic of Nigeria 1999;

“the Executive Council” means the Executive Council of the State; “prescribe” means prescribe by rules made under section 10; “public moneys” include—

(a)     the public revenues of the State; and

(b)     any moneys held in his official capacity, whether temporarily or otherwise, and whether subject to any trust or specific allocation or not, by any agent of the Government, Either alone or jointly with any other person.

  1. Citation

This Law may be cited as the Finance (Control and Management) Law.

FIRST SCHEDULE

[(s.7)]

Funds and Accounts Established

[C.R.S.L.N. 5 of 1976.]

₦

Contingencies Fund …………………………………………………………..          500,000

Vehicle Advances Account…………………………………………………….      8,000,000 Miscellaneous Personal Advances Account…………………………………      12,000 Petrol Trading Account………………………………………………………..      40,000 Diesel Trading Account………………………………………………………..      20,000 School Fees (Voluntary Agency) Account ………………………………….      Unlimited Farmers Fertiliser and Poultry Deposit Account……………………………      Unlimited General Deposits Account …………………………………………………….      Unlimited Unallocated Stores Account… ………………………………………………..      50,000 Workshop Suspense Account …………………………………………………      10,000

Special Agricultural Inputs (Revolving) Accounts …………………………      100,000 Treasury Clearance Account…………………………………………………..      Unlimited Staff Housing Fund……………………………………………………………..     2,000,000 Trading Account for Government Guest Houses …………………………..     27,000

SECOND SCHEDULE

[(s. 9).]

Accounting Transactions Authorised

The Federal Government of Nigeria.

Any of the other State Governments of Nigeria.

Statutory Bodies or Corporations.

Other Governments not expressly mentioned herein.

The Crown Agents for Overseas Governments and Administrations.

TABLE

Derivation of Sections

  1. Funds and Accounts Law 1970.
  2. Finance (Control and Management) Law.
  3. Contingencies Fund Law.

1.

  1. A2 and B2.
  2. A3.
  3. A4.
  4. A5.
  5. A6.
  6. A9.
  7. A10.
  8. A11.
  9. A12.
  10. B3.
  11. B4.
  12. A8 and B5.
  13. B6.
  14. B7.
  15. B8.
  16. A7.
  17. B9.
  18. B10 and A7.
  19. B11 and A7.
  20. B12 and A7.
  21. B13.
  22. B14.
  23. B15.
  24. C3 omitting subsections (2) & (3).
  25. C4.
  26. C5.
  27. C6.

 

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

  1. Contingency Fund Rules.
  2. Staff Housing Fund Rules.

CONTINGENCIES FUND RULES

  1. Citation

These rules may be cited as the Contingencies Fund Rules.

  1. Keeping of accounts

The accounts of the Fund shall be kept by the Accountant-General of the State and shall be audited by the Auditor-General to whom annual statements shall be forwarded by the Accountant- General as soon as possible after the close of each financial year. A copy of such accounts, together with the reports of the Auditor-General thereon, shall be presented before the Legislature and shall be examined by the Public Accounts Committee.

  1. Issue of Contingencies Warrants

No sums shall be paid out of the Fund save on the authority of a Warrant, which shall be known as a Contingencies Warrant, signed by the Commissioner. Every such payment shall be described as a Contingencies Advance. The Contingencies Warrant shall state the purposes for which expenditure is to be made and shall indicate the Head, Sub-head and Item of expenditure to which the expenditure would have been classified, if made from the Consolidated Revenue Fund and not by way of advance from the Contingencies Fund.

  1. Contingencies Warrant to be signed on Executive Council’s approval

The Commissioner shall not sign a Contingencies Warrant unless Executive Council has approved the presentation to the Legislature of a Supplementary Estimate in due course.

  1. Action to be taken on receipt of Contingencies Warrant.

When a Contingencies Warrant has been signed it shall be forwarded to the Accountant- General; a copy of the Warrant shall be forwarded to the Auditor-General. On receipt of the Warrant the Accountant-General shall forthwith accept as a charge against the Fund vouchers drawn by the officer controlling expenditure under each Head, Sub-head and Item indicated in the Warrant up to the maximum imposed by the amounts shown in the Schedule to the Warrant; each voucher shall indicate clearly the vote of charge to which the expenditure would  have been classified if incurred from the Consolidated Revenue Fund.

  1. Adjustment Vouchers to be raised as soon as Legislature passes Appropriation or Supplementary Appropriation Law

When the Legislature has passed a Supplementary Appropriation Law, or an Appropriation Law, which contains provisions in respect of Items for which Contingencies Advances have been made, the Accountant-General shall within seven days raise Adjustment Vouchers debiting the Head, Sub-head and Item for which Supplementary Appropriation has been made and crediting the Contingencies Fund with the sums expended from the Fund on the authority of the Warrant or Warrants. Every officer against whom such Adjustment Vouchers are raised shall forthwith accept it.

 

STAFF HOUSING FUND RULES

ARRANGEMENT OF RULES

RULE

  1. Establishment of a board of management of the Fund.
  2. Composition of the Board and its meeting.
  3. Provisions as to Secretary and his functions.
  4. Powers of the Board.
  5. Eligibility for loan, etc.
  6. Obligation to serve at a place other than where house is situated.
  7. Provisions relating to applications, etc.
  8. Maximum limit of loans
  9. Provisions relating to repayment of loans.
  10. Method of making loans.
  11. Extra requirement relating to property acquired from loans made by the Board.
  12. A house built or purchased with loan to be insured.
  13. Loan to bear interest.
  14. Commencement date of repayment of loan.
  15. Repayment of loan, how made.
  16. Further security for loan.
  17. Repayment of loan if the Borrower dies or ceases to be a person to whom these Rules apply.
  18. Unauthorised structural alteration prohibited.
  19. Obtaining land with part of loan.
  20. Loan for permanent capital improvement to Borrower’s house.
  21. Avoidance of doubt.
  22. Interpretation.
  23. Citation.

SCHEDULE 1

Form of Application for Advance

SCHEDULE 2

Procedure in Dealing with Applications for Loans

SCHEDULE 3

Specimen Form of Contract between Borrower and Contractor

SCHEDULE 4

Specimen Forms of Mortgage

F2 – 13 [Issue 1]

SCHEDULE 5

Table of Repayments at Five Per Cent

SCHEDULE 6

Table of Repayments at Eight and a Half Per Cent                                                                                                                                         

STAFF HOUSING FUND RULES

(1st January, 1972)

[Commencement]

  1. Establishment of a board of management of the Fund.

There is hereby established for the purposes of the Staff Housing Fund shown in the First Schedule to the Finance (Control and Management) Law, a board (in these rules hereafter referred to as the Board”) the function of which shall be to manage and control the said Fund.

  1. Composition of the Board and its meeting

(1)     The meeting of the Board shall be held at least two times in the year.

(2)     A meeting of the Board shall be summoned by the Secretary on the direction of the Chairman and held at such places and times as the Chairman may direct.

(3)     The quorum for a meeting of the Board shall be the Chairman (or other person presiding in the absence of the Chairman) and two other members.

(4)     Decisions reached at meetings of the Board shall be signified by the votes of a majority of members present and voting thereat, and in the case of equality of votes, the Chairman shall, in accordance with the provisions of section 53 of the Interpretation Law, have a casting vote.

  1. Provisions as to Secretary and his functions

(1)     The Secretary to the Board shall be a person in the public service and shall be assisted in the performance of his functions by such staff in the public service as may be deployed for that purpose.

(2)     It shall be the duty of the Secretary to—

(a)     record minutes of the proceedings of the Board;

(b)     attend to the Board and carry out its or its Chairman’s directives;

(c)     cause to be kept by a duly qualified officer proper accounts of financial transactions undertaken by the Board; and

(d)     do all such things as may be necessary for the due and effectual performance of the functions of the Board.

  1. Powers of the Board

(1)     The Board may consider applications from persons to whom these rules apply for loans for the purpose of building, or completing the building of, or purchasing, houses for residential purpose.

 

(2)     The Board shall not make a loan for the purpose of purchasing a house unless the house is inspected and valued by an appropriate officer of the Ministry responsible for land matters and the Board is satisfied that the applicant has a valid title deed to the land or which may be sublease or mortgage a certificate of occupancy, customary right of occupancy on condition that the Government obtains a first mortgage of the land and of any building erected, or to be erected, thereon.

  1. Eligibility for loan etc.

A person is not eligible to apply for a loan under these Rules unless at the time of the application he is a holder of a pensionable appointment in the service of the Government of the State, or in a Statutory Corporation, or in a State-owned Company, or in a Voluntary Agency Medical or Educational Institution owned and controlled by the State by virtue of which he is entitled to receive an annual allowance on completion of service.

  1. Obligation to serve at a place other than where house is situated

A person who obtains a loan from the Board and builds, completes the building of, or purchases, a house is not thereby released from his obligation to serve at a place other than the place where the house is built, completed or, as the case may be, purchased.

  1. Provisions relating to application, etc.

(1)     Application shall be made in a form, duly completed, as in Schedule 1 to these rules addressed to the Secretary who shall submit the same to the Board for consideration in accordance with the provisions of Schedule 2 of these rules.

(2)     Such application shall be considered on merit and for this purpose the Board may require an applicant to appear before it to give further and better particulars regarding his financial position, and to assist the Board further, the Senior Local Officer of the applicant’s Ministry or Department may in forwarding an application to the Board, accompany it with any special information he may have.

(3)     The applicant shall submit for the approval of the Board any relevant plans of the house he intends to build, and (unless the applicant intends to build the house by direct labour) a copy of the contract he intends to enter into with the contractor for the building of the house; and for this purpose a contract acceptable to the Board may be in the form in Schedule 3 to these rules or in a form to the like effect.

(4)     The Board shall require the applicant to enter into a Loan Agreement to guarantee the repayment of the loan and such agreement shall be as in the form set out in Schedule 4 to these rules.

  1. Maximum limit of loans

(1)     In the case of an officer described in rule 5 not below salary grade level 04, the amount of loan to which such officer is entitled shall not exceed the aggregate of his salary for six years.

(2)     In the case of an officer described in rule 5 other than an officer to whom rule 8 (1) applies, a loan shall not exceed the aggregate of six years’ salary of such officer but subject to a maximum loan of sixty thousand naira.

  1. Provisions relating to repayment of loans

(1)     Subject to rule 15 a loan is repayable within fifteen years and the rate of monthly repayment may not exceed one-third of the borrower’s monthly income.

(2)     Where it appears to the Board that a borrower is due to retire from service before the loan is completely repaid, the Board may either increase the rate of repayment or attach such other conditions regarding repayment as the Board may deem necessary.

  1. Method of making loans

(1)     Where a loan is approved for the purpose of building a house under a contract between the applicant and a contractor, payment of the loan shall be made by advances to the applicant in the manner hereinafter stated, that is to say—

(a)     on the signing of the loan agreement, an advance representing not more than twenty per cent of the loan approved or of the contract price;

(b)     further advances payable from time upon the certificate of the Permanent Secretary, representing in each case the value of the materials on site, so however that the aggregate of the advances made does not exceed sixty per cent of the contract price or of the loan approved;

(c)     a further advance at the completion of the house representing ten per cent of the contract price; and

(d)     a final advance representing ten per cent of the contract price payable at the expiration of three months after the date of the certificate and upon a final certificate of the Permanent Secretary that the work has been satisfactorily completed.

(2)     Where a person to whom these rules applies is building his house by direct labour, further advances after the initial advance shall only be made from time to time on a certificate by an independent valuer approved by the Permanent Secretary to the effect that the value of work done is commensurate with the loan previously made.

(3)     Where a loan is made for the purchase of a house, the payment shall be made—

(a)     to the borrower and the vendor informed;

(b)     upon the security of the house as stipulated in rule 17, and

(c)     upon the certificate of the Permanent Secretary responsible for land matters as to the structure and suitability of the house in relation to the amount of the loan made by the Board and to the purchase price of the house.

  1. Extra requirement relating to property acquired from loans made by the Board

(1)     Before an advance under paragraphs (b) and (c) of rule 10 (1) is made, the Permanent Secretary shall, upon the request of the Board to that effect and within thirty days of the receipt of such request, depute an officer to inspect the work and furnish a certificate authorising the payment of the relevant advance.

(2)     The Board shall ensure that a house built with a loan made by the Board is properly maintained and kept in a state of good repair by the borrower during the period of repayment and for this purpose the Permanent Secretary may depute an officer to carry out periodical inspection of the house, and the Board may direct any necessary repairs to be carried out at the expense of the borrower.

  1. A house built or purchased with loan to be insured

(1)     A house built or purchased with a loan made by the Board shall be insured by the borrower with an approved Insurance Company for not less than the full amount of the outstanding loan in appropriate case against—

(a)     loss or damage by fire, water, tornado, lightning or burglary; and

(b)     theft of the building materials in the course of construction

(2)     The policy of insurance shall be taken out in favour of the Accountant-General and maintained throughout the period of repayment of the loan and the premiums payable in respect thereof shall be paid by the borrower.

(3)     The borrower shall take out the necessary insurance policy—

(a)     in the case of a house built by the borrower, at the commencement of construction; or

(b)     in the case of a house to be purchased by the borrower, immediately after the Permanent Secretary has certified that the house is suitable for the loan.

(4)     The borrower shall ensure that for the duration of the construction of the building, he or his contractor shall insure the work as executed and fixed in position in accordance with Clause 5 (b) of Schedule 4 to these rules.

  1. Loan to bear interest

A loan made by the Board shall bear interest at the rate of three per cent.

  1. Commencement date of repayment of loan

Repayment of a loan made by the Board shall commence—

(a)     in the case of purchase, immediately after the loan is made;

(b)     in any other case, eighteen months after the loan is made.

  1. Repayment of loan, how made

(1)     The repayment of loan made by the Board together with interest thereon shall be made by equated monthly instalments the amount of which shall be specified in the loan agreement as shown in Schedule 4 to these rules.

(2)     Subject to agreement between the Board and the borrower the amount of the monthly instalments may at any time be increased so as to effect a speedier repayment so however that repayment shall always be by equated monthly instalments.

(3)     Notwithstanding the provisions of paragraphs (1) and (2) of this rule, the repayment of an outstanding balance of a loan made by the Board may be made by—

(a)     one lump sum payment, or

(b)     regular lump sum payments the amount of which shall not be less in each case than the aggregate of six monthly instalments as stipulated in the loan agreement; and if such lump sum payments do not completely discharge the outstanding balance together with the interest thereon, the repayment of any balance then outstanding shall be repayable by equated monthly instalments the amount of which shall be agreed between the lender and the borrower until such balance is fully repaid.

  1. Further security for loan

Until a loan made by the Board is fully repaid, the house in respect of which the loan was made shall be secured to the Government in a manner acceptable to the Board.

  1. Repayment of loan if the Borrower dies or ceases to be a person to whom these

Rules apply

Where before the loan made by the Board is fully repaid the borrower dies or ceases to be a person to whom these rules apply, the Board shall consider any arrangement whereby the payment of any balance then outstanding may be continued by the borrower or his next-of-kin or other legal personal representative.

  1. Unauthorised structural alteration prohibited

No structural alteration may without the consent of the Board be made to a house built with a loan made by the Board when the loan has not been fully repaid.

  1. Obtaining land with part of loan

(1)     The Board may in certain circumstances authorise the borrower to use a part (not exceeding twenty-five per cent) of the loan for the purpose of purchasing land on which the house is to be built; and the other part shall be used only for the building of the house.

(2)     Where a borrower is authorised by the Board to obtain land with part of the loan, the borrower shall deposit with the Board as the case may be the certificate of occupancy, the customary right of occupancy or a deed of sublease of the land.

  1. Loan for permanent capital improvement to Borrower’s house

The Board may, in certain circumstances, make a loan to a person to whom these rules apply for the purpose of making permanent capital improvement to a house belonging to such person which had been built on land covered with as the case may be a certificate of occupancy, the customary right of occupancy or deed of sublease and free from any encumbrance whatsoever.

  1. Avoidance of doubt

For the avoidance of doubt, where the Board is empowered by these rules to make a loan in certain circumstances the question as to what constitutes such circumstances shall be determined by the Board and the Board alone.

  1. Interpretation

(1)     In these rules unless the context otherwise requires—

“the Fund” means the Staff Housing Fund; “the Permanent Secretary” means the Permanent Secretary of the Ministry of Public Works, or his representative “public officer” includes members of staff of Statutory Corporations, State-owned Companies, Voluntary Agencies, Medical or Educational Institutions; “the Secretary” means the Secretary to the Board appointed under these rules.

(2)     In these rules and in the Schedules thereto—

(a)     words importing the masculine gender include females;

(b)     words in the singular include the plural and words in the plural include the singular.

  1. Citation

These rules may be cited as the Staff Housing Fund Rules.

SCHEDULE 1

STAFF HOUSING FUND RULES                

Form of Application for Advance

Age ……………………………………

  1. Name ……………………………………………………………………………………..
  2. Rank and present salary ……………………………………………………………….
  3. Department/Ministry ………………………………………………………………….
  4. State whether married or single and if married the number of children ………
  5. Length of pensionable service ……………………………………………………….. ……………………………………………………………………………………………..
  6. Where the applicant is now living and does he hold his present house under lease and if so, wheat rent does he pay? …………………………………………..
  7. Give full descriptions of place where he desires to build giving the address …………………………………………………………………………………………….
  8. State the location of the land on which he intends to build ……………………..
  9. Does the applicant own any property anywhere and if so, what rent does he derive there-from? ……………………………………………………………………..
  10. Has the applicant any source of income other than his salary, if so, how much?……………………………………………………………………………………..
  11. Is the applicant’s life insured, if so, for what sum and with which Company? ……………………………………………………………………………………………..
  12. Amount required ……………………………………………………………………….. ……………………………………………………………………………………………..
  13. Period of refund ………………………………………………………………………… ……………………………………………………………………………………………..

DECLARATION BY APPLICANT

I HEREBY DECLARE that the loan described in the particulars furnished above is required to provide a house for the residential purposes of myself or the family or both, or for a house which I can let at a rent particularly if I am living in the place or town where the house is situated; that I fully understand the conditions under which the money will be advanced as embodied in the rules; that after making allowance for every contingency I am able to repay the advance in the instalments stipulated………………………………………………………………….

Signature …………………………………………

Rank

CERTIFICATE OF HEAD OF DEPARTMENT/MINISTRY (WHERE APPLICABLE)

I CERTIFY that the particulars furnished by …………………………………………… in the above statement are true to the best of my knowledge and belief; that the work and conduct of the applicant have been satisfactory, and I can recommend the applicant as being worthy in every respect of the concession for which he applies. I confirm that the applicant has been confirmed in his appointment. ………………………………………………………..20 …………..

……………………………………………                        Signature

SCHEDULE 2

STAFF HOUSING FUND RULES

Procedure in Dealing with Application for Loans

  1. Loans are of three kinds, namely—

(a)     loan to build a house for residential purposes;

(b)     loan to purchase a house and obtain land for residential purposes, and

(c)     loan to complete the building of a house.

  1. Application for loan shall be submitted to the Secretary through the applicant’s Head of Department in the case of non-Ministerial Departments, but in the case of an officer in the Administration in the field or an officer directly under a Ministry, the application shall be submitted through the Administrative Officer in charge of that station or through the Permanent Secretary respectively.
  2. The Head of Department, Administrative Officer, or Permanent Secretary, as the case may be, may in transmitting the application, make such comments respecting the application as he thinks fit.
  3. Where the loan is for the purpose of building a house the applicant must produce as the case may be a certificate of occupancy, a customary right of occupancy or deed of sublease—

(a)     in the case of State land, the lease of the plot;

(b)     the building plan and specifications in duplicate; and

(c)     a copy of the contract entered into or to be entered into between the applicant and his contractor for the erection of the house.

  1. (1) The Board shall keep a file for each application, and the Secretary shall, as soon as an application is received, write the Permanent Secretary forwarding the plan of the house and specification in duplicate for comments.

(2)     Upon the receipt of these papers, the Permanent Secretary shall communicate his views to the Secretary covering the points—

(a)     whether the plan and specifications could provide a reasonably solid building, and

(b)     whether the tender price is reasonable in relation to known costs of work done by or for the Ministry of Public Works and Housing.

  1. If the tender price or official estimated cost of the house is higher than the amount of loan entitlement by more than 15% of the loan entitlement, the Secretary shall write to the applicant instructing him to deposit the difference into the Treasury and to forward the Treasury receipt.
  2. (a) After receipt of the replies to the inquiries referred to in paragraphs 5, 6, and 7 above, but before any further action is taken, the Secretary shall bring the case before a meeting of the Board.

(b)     If the Board disapproves the application or requires further information, it will issue specific instructions. If it approves the application, action shall proceed in accordance with the following paragraphs.

  1. The Secretary shall request the applicant to register the Deed or Mortgage with the appropriate Ministry.
  2. A Deed of Mortgage or Deed of Assignment which shall be consented to by His Excellency, the Governor, or the Commissioner charged with responsibility for land matters shall contain a certificate as under, signed by the Commissioner for Stamp Duties – “In exercise of the power delegated to me in this behalf, I hereby consent to the transaction herein contained.”.
  3. The Borrower shall forward to the Secretary in duplicate the indenture of agreement between himself and the Contractor, each copy of which shall be signed over a ten kobo stamp.
  4. After execution of the Agreement a copy shall be filed and copies shall be sent to—

(a)     The Permanent Secretary, Ministry of Public Works;

(b)     the Contractor;

(c)     the Accountant-General; and

(d)     the Applicant.

  1. After the Secretary of the Lands Division of the appropriate Ministry has received the registered Deed of Mortgage he shall file a copy and send the original copy with the Building Lease to the Accountant-General and the counterpart to the Mortgagor, and shall further send copies to—

(a)     the Accountant-General;

(b)     the mortgagee;

(c)     the Solicitor-General and Permanent Secretary; and

(d)     the mortgagor.

  1. The Borrower is responsible for requesting payment of advance to himself out of the loan and upon such request, the Secretary shall authorise the Permanent Secretary of the Ministry of Works and Housing to arrange for inspection and valuation of the work as executed and fixed in position and, upon the receipt of the certificate of the said Permanent Secretary stating the value of the work, shall make proportionate payment to the Borrower in accordance with Rule 10.
  2. The Borrower shall then send the insurance policy to the Secretary.
  3. Where the loan is for the purchase of a house—

(a)     the applicant shall produce the documents prescribed in paragraphs (a), (b) and (c) of clause 4 of this Schedule together with a copy of the drawing of the house to be purchased;

(b)     the Secretary of the Ministry of Works and Housing who shall arrange to have the house inspected by an officer in his Ministry and shall then report to the Secretary in the manner stated in Clause 5 of this Schedule shall apply;

(c)     Clauses 6 to 11 and 14 to 17 of this Schedule shall apply.

SCHEDULE 3

STAFF HOUSING FUND RULES

Specimen Form of Contract between Borrower and Contractor

ARTICLES OF AGREEMENT made the ……….. day of………………………………….., 20  ………… ………Between…………………………………………………………………… of ……………………………………….. (hereinafter called “the Employer”) of the one part and…………………………… of ……………………………… (hereinafter called “the Contractor”) of the other part. WHEREAS the Employer is desirous of erecting or completing a dwelling house on the plot of land situated at ……………………………………………………. in accordance with the drawings and specifications setting forth the work to be done.

NOW IT IS HEREBY AGREED AS FOLLOWS—

  1. The Contractor for the consideration of ₦…………………..will erect on the said plot the dwelling house in accordance with detailed drawings and specifications (signed by the parties and annexed hereto) and the Contractor will complete the said dwelling house in substantial and workmanlike manner to the satisfaction of the Permanent Secretary of the Ministry of Works and Housing.
  2. The Contractor will keep the Employer indemnified against all losses incurred by reason of any breach of by-laws or regulations relating to building or building lines which are in force in the area where the dwelling house is being built.
  3. The Contractor will within …………………………………… from the date of the signing of this Agreement complete the work of building the said dwelling house and render same fit for occupation and remove from the said premises all surplus materials and rubbish.
  4. The Contractor shall, immediately before commencing the works and at all times during the progress of the works until the said dwelling house and premises are delivered up, insure and keep insured the building in the course of erection in full value thereof from loss or damage by fire, water, tornado, lightning or burglary and shall deposit with the Accountant-General all policies and receipts for premiums paid.
  5. Advances in respect of the buildings shall be paid to the Employer by the Accountant-General at the request of the Employer from time to time, upon the certificate of the Permanent Secretary of the Ministry of Works and Housing at the rate of the original advance of ten per cent of the contract price reduced to that proportion which the value of the work done together with the materials on site bears to the total value of the completed house until the actual completion of the work, and at that stage an additional ten per cent shall be paid and the remaining ten per cent paid at the expiration of three months after the date of the certificate of the said Permanent Secretary that the work has been satisfactorily completed.
  6. The Contractor shall within two days of the completion of the building give notice thereof in writing to the Permanent Secretary of the Ministry of Works and Housing, and if the building is in accordance with the plans and specifications or the plans and specifications modified or added to as provided for by subsequent agreement and the Contractor has in all other respects conformed with the provisions of this Agreement, the calculation of the period for the issue of the final certificate of the Permanent Secretary of the Ministry of Works and Housing shall commence from the date of the notice so given; and in all other cases the calculation of such period shall commence two days after the receipt by the Permanent Secretary of the Ministry of Works and Housing of notice of such completion or two days after completion to the satisfaction of the Permanent Secretary of the Ministry of Works and Housing as the case may be.
  7. If the Contractor—

(a)     without reasonable cause wholly suspends the work during construction; or

(b)     refuses or fails to remove defective work or improper materials; or

(c)     neglects or fails to proceed with the work with reasonable diligence, and if the default continues for seven days after the Employer has served him with notice in writing to desist from the default or to make good the defect, the Employer may, without prejudice to any other course of action which he may have under this contract, by notice in writing signed by him, determine this contract.

  1. If this contract is determined in pursuance of Clause 7, then—

(a)     the Employer may employ and pay any other person or carry on and complete the work and the Employer or that other person or those other persons may enter upon the site and use all materials, temporary buildings, plants or appliances thereon; and

(b)     the Contractor shall, if required by the Employer so to do, without further payment assign to the Employer the benefit of any contract—

(i)      for the supply of materials intended for use under this contract; or

(ii)     for the execution of any works under this contract, and the Employer shall pay the amount, if any, that remains to be paid under this contract for the materials supplied or for the works executed after the determination.

IN WITNESS whereof the parties hereto have hereunto set their hands and seals the day and year first above written. Signed, sealed and delivered by the said employer…………………………………………………………………. Employer In the presence of Signature………………………………………….. Name ……………………………………………….Address………………………………………………………………………………………………………Occupation………………………………………..Signed, sealed and delivered by the said Contractor………………………………………………………………..Contractor In the presence of Signature………………………………………….. Name………………………………………………Address………………………………………………………………………………………………………Occupation………………………………………..

SCHEDULE 4

STAFF HOUSING FUND RULES

Specimen Forms of Mortgage

THIS INDENTURE made the ……………. day of …………………………………. , 20 …………Between ……………………………………………………… of ………………………………………………………………………(hereinafter called “the Borrower” which expression shall, where the context so permits, include his successors in title) of the one part and ……………………………………………………………, the Chairman, Board of Management, the Staff Housing Fund of the Government of the Cross River State of Nigeria acting for and on behalf of the said Government (hereinafter called “the Lender” which expression shall, where the context so admits, include his successors in office) of the other part.

WHEREAS—

(1) The Borrower is the lessee (or as the case may be, assignee) of the premises in the lease dated the………………. day of …………………………….. , 20 ………… made between…………………………………….. and the Borrower and registered as No …………… at page …… in volume ……………………………….. in the Register of Deeds in the Land Registry at Calabar for the term and subject to the covenants and conditions therein contained.

(2) The Borrower intends to erect a house and out-buildings on the said premises at an estimated cost of ₦ …………………… and in accordance with the plans hereto annexed.

(3) The Borrower has applied to the Lender for an advance of ₦……………………. for the purpose upon the repayment thereof with interest secured in the manner hereinafter appearing.

(4) The Borrower requires an immediate advance of ₦………………. being an amount equivalent to ten per cent of the said loan to enable him to commence the erection of the said house and out-buildings and the Lender has agreed to advance him the said ₦ …………………………. and from time to time at the request of the Borrower to make further advances to the Borrower in the manner hereinafter appearing but so that the aggregate of those advances together with the sum of ₦………………………………. now advanced to the Borrower shall not exceed ₦ ……………………………………………………… being the total amount of this loan. In pursuance of the said agreement and in consideration of the sum of ₦……….(being ten per cent of the said loan) paid by the Lender to the Borrower (the receipt whereof the Borrower hereby acknowledges) and in consideration of the covenant of the Lender hereinafter contained for making further advances:

THIS INDENTURE WITNESSETH as follows:

  1. The Borrower hereby covenants with the Lender to pay to the Lender the sum of ₦………………………. (whole amount of loan) with interest thereon at the rate of five per cent or where applicable eight and a half per cent per annum over a period of …………………….. by equated monthly instalments or deductions from the salary of the Borrower of ₦ ………………. each, the first of such payments to be made on the first day of the month following the date on which the Permanent Secretary of the Ministry of Works and Housing or, where necessary, other competent authority, certifies that the house is fit for occupation, and each of the subsequent instalments on the first day of every succeeding month, until the whole debt is fully repaid: Provided, however, that the Borrower may effect a speedier repayment of the loan or any outstanding balance thereof and interest thereon by a lump sum payment or regular lump sum payments each of which shall not be less than the aggregate of six monthly instalments, and if the lump sum payments do not discharge the whole amount of the loan or any balance and interest thereon repayment shall be equated monthly payments the amount of which shall be agreed between the Lender and the Borrower.
  2. In further pursuance of the said agreement and for the consideration aforesaid the Borrower as beneficial owner hereby demises unto the Lender all the property comprised in and demised by the aforementioned lease and all the buildings now or hereafter to be erected thereon to hold the same unto the Lender for the residue of the term created by the said lease subject to the provision for redemption hereinafter contained.
  3. If the Borrower pays to the Lender on the dates aforesaid the said sum of ₦……………… (total amount of loan) and interest thereon at the rate herein before mentioned in accordance with the instalments or deductions from the salary of the Borrower as herein before provided, then the Lender will any time thereafter at the request and cost of the Borrower either execute a receipt for the Borrower’s money or re-assign to the Borrower the property hereby mortgaged or otherwise discharge this security.
  4. The Lender hereby covenants with the Borrower that if the Borrower in the mean-time strictly observes and performs all agreements, stipulations and conditions on his part herein contained and carries out the provisions of the Housing Fund Rules but not otherwise, then at the request of the Borrower, the Lender shall—

(a)     from time to time advance sums of money representing seventy per cent of the loan reduced to that proportion which the value of the work done together with the value of materials on site bears to the total value of the completed building until the actual completion of the work; and

(b)     when the said house and out-buildings are completed, painted and certified fit for occupation by the Permanent Secretary of the Ministry of Works and Housing and (where necessary) a certificate of occupation is granted by the competent authority, advance to the Borrower such sum as will bring the total advance to ninety per cent of the said loan; and

(c)     after three months of the issue of the above certificate and subject to another inspection by the Permanent Secretary of the Ministry of Works and Housing or his representative advance to the Borrower an amount representing the last ten per cent of the loan: Provided and it is hereby agreed that interest at the rate aforesaid shall be due and payable on the amount of each advance beginning with the date on which such advance is made to the Borrower.

  1. The Borrower hereby covenants with the Lender as follows—

(a)     that during the continuance of this security the Borrower shall keep the aforementioned house and out-buildings in good and substantial repair and if the Borrower neglects so to do the Lender may, at his discretion, enter upon the said premises in order to repair and keep in repair the said house and out-buildings without thereby becoming liable as a mortgagee in possession and his expenses of so doing shall be added to the principal money hereby secured and bear interest accordingly; and

(b)     that from the date of taking over of the building from the Contractor and during the continuance of this security the Borrower shall insure and keep insured against loss or damage by fire, water, lightning, tornado and burglary for the full value thereof; and the insurance shall be with the Manilla Insurance Company Limited and the receipts for the policy and premiums shall as and when received by the Borrower be deposited with the Lender, and if the Borrower makes default in securing such insurance or in paying any premiums the Lender may insure as aforesaid and pay the premiums and such expenses of the Lender shall be payable by the Borrower on demand and until so paid shall be added to the principal sum hereby secured and bear interest accordingly.

  1. The Borrower further covenants with the Lender that the Borrower shall not, during the continuance of this security, make an under-lease or sublet or otherwise part with the possession of the mortgaged premises without the consent in writing of the Lender.

IN WITNESS whereof the parties have hereunto set their hands and seals the day and year first above written. Signed, sealed and delivered by the Borrower………………………………………………………………….

Borrower In the presence of Signature…………………………………………..

Name ……………………………………………….

Address…………………………………………….

………………………………………………………..

Occupation………………………………………..

Signed, sealed and delivered by the Lender.

…………………………………………………………………

Chairman, Board of Management,

Staff Housing Fund, Calabar

In the presence of

Signature…………………………………………..

Name ……………………………………………….

Address…………………………………………….

………………………………………………………..

Occupation………………………………………..

 

SCHEDULE 5

STAFF HOUSING FUND RULES

Table showing monthly repayment of loans by way of annuity over a period of fifteen years with interest at five per cent per annum.

 

Amount of Loan Total Amount of Loan and Interest Repayable Amount of monthly Repayment of Loan and Interest
₦          K ₦        k ₦         K
100.00 144.50 0.81
200.00 289.00 1.61
1,000.00 1,445.121/2 9.05
2,000.00 2,890.25 18.10
4,000.00 5,780.50 36.20
6,000.00 8670.75 54.30

 

 

 

 

SCHEDULE 6

STAFF HOUSING FUND RULES

Table showing monthly repayments of loans by way of annuity over a period of fifteen years with interest at eight and a half per cent per annum.

 

Amount of Loan Total Amount of Loan and Interest Repayable Amount of monthly Repayment of Loan and Interest
₦          K ₦        k ₦         K
100.00 181.50 0.01
200.00 361.50 2.01
1,000.00 1,807.50 10.05
2,000.00 3,615.00 20.09
4,000.00 7,230.00 40.17
6,000.00 10,845.00 60.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAP. F2

Finance (Control and Management) Law

F2 – 1 [Issue 1]

CHAPTER F2

FINANCE (CONTROL AND MANAGEMENT) LAW

ARRANGEMENT OF SECTIONS

PART 1

Establishment of Certain Funds and Accounts

SECTION

  1. Consolidated Revenue Fund.
  2. Establishment and purposes of Capital Development Fund.
  3. Composition of the Capital Development Fund.
  4. Retention of balances of Capital Development Fund.
  5. Establishment of certain accounts.
  6. Operation of General Deposits Account.
  7. Accounting transactions. Treasury Clearance Account.
  8. Rules.

PART 2

Control of Expenditure

  1. Supervision of expenditure and accounts by the Commissioner.
  2. Management of Consolidated Revenue Fund.
  3. Authority to incur expenditure.
  4. Authorised expenditure from Consolidated Revenue Fund.
  5. Repayment of erroneous receipts.
  6. Losses.
  7. Investments.
  8. Authorisation of investments.
  9. Procedure concerning Investments General.
  10. Income of Investments General.
  11. Fluctuation in value of Investments General.
  12. Provision of Appropriation Law not in force.
  13. Payment of agents.
  14. Trading Accounts.

PART 3

Contingencies Fund

  1. The Contingencies Fund.
  2. Use of Contingencies fund to meet unforeseen expenditure.
  3. Repayments to Contingencies Fund.
  4. Power to make rules.

 

F2 – 2 [Issue 1]

PART 4

Citation and Interpretation

SECTION

  1. Interpretation.
  2. Citation.

FIRST SCHEDULE

Funds and Accounts Established

SECOND SCHEDULE

Accounting Transaction Authorised

CHAPTER F2

FINANCE (CONTROL AND MANAGEMENT) LAW

(28th November, 1970)

[Commencement]

A Law to provide for the control and Management of the Public Finance of Cross River State, for the Establishment of certain Public Funds and Accounts and to regulate disbursement from such Funds and for other purposes connected with such Funds and Accounts or incidental thereto.

PART 1

Establishment of Certain Funds and Accounts

“statutory expenditure” means—

(a)     the expenditure charged on the Consolidated Revenue Fund by any provision of the Constitution; and

(b)     such other expenditure as may by law (other than an Appropriation or Supplementary Appropriation Law) be charged on the Consolidated Revenue Fund or the general revenue and assets of the State, or on the other public funds of the State, as the case may be; “the State” means Cross River State.

  1. Consolidated Revenue Fund

It is hereby declared that the fund known as the Consolidated Revenue Fund maintained by the Accountant-General since the 1st day of April, 1968, and still to be maintained by him, is the Consolidated Revenue Fund of the State established by section 167 of the Constitution.

  1. Establishment and purposes of Capital Development Fund

(1)     There is hereby established a fund to be known as the Capital Development Fund.

(2)     The purposes of the fund are to meet expenditure authorised in an Appropriation or a Supplementary Appropriation Law in respect of a development plan or development programme from time to time approved under either name, by the Executive Council.

(3)     For the avoidance of doubt it is hereby declared that expenditure of a recurrent nature shall not be met from the fund.

(4)     In so far as circumstances require, all documents relating to the fund shall account for, separately—

(a)     all contributions to; and

(b)     all expenditure from the fund.

  1. Composition of the Capital Development Fund The Capital Development Fund established under section 2 of this Law shall consist of the following, that is to say—

(a)     proceeds of the Development Fund portion of the State’s Development Tax;

(b)     all moneys accruing to the State from the following sources—

(i)      proceeds of the five per cent Compulsory Savings Scheme and of any other loans raised within or outside the State by the State Government for development purposes;

(ii)     the State’s share of Federal Development Loan;

(iii)    grants made to the State for capital development purposes by any person, institution or government;

(iv)    moneys appropriated by the Executive Council for Capital Development Expenditure from the Consolidated Revenue Fund of the State; and

(v)     such other moneys as the Commissioner may prescribe.

  1. Retention of balances of Capital Development Fund

At the close of each financial year all receipts, earnings, accruals or balances of the Capital Development Fund shall be retained for the purposes of the said fund, and shall not, unless the Commissioner otherwise directs, be paid into the Consolidated Revenue Fund.

  1. Establishment of certain accounts

(1)     The accounts set out in the first column of the First Schedule to this Law are hereby established.

(2)     The Commissioner may by warrant under his hand authorise the Accountant-General to withdraw from the Consolidated Revenue Fund such sums as may be necessary for the purposes of the accounts established under this section.

(3)      The amount withdrawn from the Consolidated Revenue Fund in respect of each of the said accounts shall not at any time exceed the amount set out opposite each account in the second column of the First Schedule to this Law.

(4)     No disbursements which are in the nature of final expenditure properly chargeable to the Consolidated Revenue Fund or to the Capital Development Fund shall be charged to the said accounts.

(5)     The Executive Council may by order in writing published in the State Gazette alter, amend or vary the First Schedule to this Law.

  1. Operation of General Deposits Account

Moneys which come into possession of the Government of the Sate but which are not due to the said Government and are held on behalf of other persons, institutions, corporate bodies or Governments, shall accrue to the General Deposits Accounts established under section 5 (1) of this Law.

  1. Accounting transactions. Treasury Clearance Account

(1)     The Accountant-General may from time to time enter into accounting transactions with any or all of the persons, institutions, corporate bodies and Governments specified in the Second Schedule to this Law.

(2)     Any accounting transactions entered into in accordance with the provisions of this section shall be by way of the Treasury Clearance Account established under section 5 (1) of this Law.

(3)     The Commissioner may by order under his hand alter, amend or vary the contents of the Second Schedule to this Law.

  1. Rules

The Commissioner may make rules the better to implement the purposes of the funds and accounts established by this Law.

PART 2

Control of Expenditure

  1. Supervision of expenditure and accounts by the Commissioner

(1)     The Commissioner shall so supervise the expenditure and finances of the State as to ensure that adequate arrangements are made for accounting to the Legislature and for such purpose shall have power to direct what accounts shall be kept.

(2)     All persons concerned in or responsible for the collection, receipt, custody, issue or payment of public moneys, stores stamps, investments, securities, or negotiable instruments, whether the property of Government or on deposit with or entrusted to Government or any public officer in his official capacity either alone or jointly with any public officer or any other person, shall obey all instructions that may from time to time be issued by the Commissioner or by direction of the Commissioner in respect of the custody and handling of the same and accounting therefore.

(3)     The Permanent Secretary, or other officer of the Ministry of Finance, shall have such access to all documents and records as may be necessary for the exercise of the Commissioner’s powers under this section.

  1. Management of Consolidated Revenue Fund

The management of the Consolidated Revenue Fund shall be conducted in accordance with the provisions of this Law and any other Law in force.

  1. Authority to incur expenditure

(1)     No expenditure involving a charge on the Consolidated Revenue Fund shall be incurred, except under the authority of a warrant sanctioned by the Commissioner.

(2)     No disbursement from the Capital Development Fund shall be made except by the authority of a warrant signed by the Commissioner.

(3)     No warrant for the disbursement of moneys from the Capital Development Fund shall be signed or issued by the Commissioner unless the expenditure to which the warrant relates      has been authorised in an Appropriation or Supplementary Appropriation Law of the State.

  1. Authorised expenditure from Consolidated Revenue Fund

(1)     The Commissioner may by warrant authorise the issue from the Consolidated Revenue Fund of all sums required to meet statutory expenditure or to meet the cost of any purpose to which any sum has been appropriated in accordance with this or any other Law: Provided that any such sum in respect of expenditure other than statutory expenditure shall not exceed the total amount appropriated for the purpose.

(2)     The Commissioner may limit or suspend expenditure notwithstanding that authority for such expenditure has been given by a warrant if, in his opinion, financial exigencies or the public interests so require: Provided that this subsection shall not convey authority to withhold payments in respect of statutory expenditure.

  1. Repayment of erroneous receipts

The Commissioner may by warrant authorise the repayment from the Consolidated Revenue Fund of sums received in error by that Fund and any such repayment shall be a charge on the Fund.

  1. Losses

Where a loss has occurred of any moneys forming part of the Consolidated Revenue Fund, or it is necessary to make a further issue there-from in respect of moneys already issued there-from which have been misappropriated or lost, or it is necessary to make an issue there-from to effect the replacement of any Government property which has been misappropriated or lost, then subject to any express provision of this or any other Law an adjustment of the Fund or an issue from the Fund for such purpose shall only be effected by the issue of a warrant by the Commissioner under the authority of an Appropriation or Supplementary Appropriation Law.

  1. Investments

The investment of moneys contained in the Capital Development Fund shall be governed by sections 18 to 21 of this Law.

  1. Authorisation of investments

(1)     The Consolidated Revenue Fund, and any other public fund of the State subject to any express provisions of Law regulating any such public fund, may in part consist of deposits with a bank, or with the Joint Consolidated Fund, either at call or subject to notice not exceeding six months, or of any investments in which a trustee in Nigeria may lawfully invest trust funds, and the disposition of moneys of the Consolidated Revenue Fund or of such other public fund for any such purpose shall need no legislative authority other than that contained in this section and may be made by the Accountant-General or the Crown Agents in accordance with any general or special instructions issued by the Commissioner.

(2)     No moneys deposited or invested otherwise than in accordance with subsection (1) may form part of the Consolidated Revenue Fund, or of any other public fund of the State, and the disposition of any moneys from that Fund or those funds for any purpose other than the form of deposit or investment specified in that subsection shall be made in accordance with the procedure prescribed in this Law or in accordance with the provisions of law regulating the fund in question.

  1. Procedure concerning Investments General

(1)     The Accountant-General shall maintain under the designation of Investments General a record of certain investments.

(2)     Investments General shall consist of—

(a)     those investments forming part of Consolidated Revenue Fund by virtue of section 18 of this Law;

(b)     any investments held in respect of moneys being part of the Contingencies Fund as described in section 25 of this Law, or any law superseding the same;

(c)     such investments held in respect of the public funds of the State as the Commissioner shall designate in writing: Provided that the Commissioner shall not designate any fund in respect of which by virtue of the provisions of law regulating such fund neither the receipts and outgoings nor the appreciation and depreciation of the investments forming part of the fund may accrue or does accrue to the Consolidated Revenue Fund.

  1. Income of Investments General

(1)     All income accruing to Investments General shall accrue to the Consolidated Revenue Fund and shall be included in the annual statement of revenue of the State for each financial year.

(2)     This section shall commence to take effect in respect of investments included in the record of twelve months ending the 31st day of March, 1969, and in respect of all interes accruing within such period.

  1. Fluctuation in value of Investments General

(1)     The Accountant-General shall in each year value any securities forming part of Investments General by assigning thereto the middle market price of such securities at the close of business on the last day in the year for which such information is available.

(2)     Any appreciation or depreciation arising from the valuation of such securities, together with any profits or losses arising from the sale of redemption of such securities, shall be credited or debited direct to the Consolidated Revenue Fund, and be shown as an addition to or deduction from the opening balance of the Consolidated Revenue Fund in the annual statement of assets and liabilities of the State.

  1. Provision if Appropriation Law not in force

(1)     If the Appropriation Law has not come into operation at the commencement of any financial year, the Commissioner may authorise by warrant the issue from the Consolidated Revenue Fund of such moneys as are necessary for carrying on the services of the Government at a level of those services prevailing in the previous financial year for a period of four months or until the Appropriation Law comes into operation whichever is shorter.

(2)     Any moneys so authorised to be issued shall not exceed the sum specified for such service in the estimates presented for the current year and shall be set off against the amounts respectively provided in the Appropriation Law upon the same coming into operation.

  1. Payments by agents

(1)     It shall be lawful for the Commissioner to appoint agents outside the State to make payments on behalf of the government and to issue instructions from time to time respecting the making of such payments.

(2)     Subject to any instructions issued by the Commissioner aforesaid, no payment by such agent in respect of contractual obligation is to be restricted by the fact that its financial authority has lapsed with the close of the financial year.

  1. Trading Accounts

(1)     The Commissioner may authorise, in the case of Ministries engaged in commercial or semi-commercial activities, the establishment of accounts to be known as Trading Accounts to which all expenditure (including that on Personal Emoluments) incurred and all revenue received for the purpose for which the said Trading Accounts are established, shall be debited or credited as the case may be.

(2)     In the preparation of the Estimates and of the Appropriation Bills account shall be taken of the net balance only of any such Trading Account as may have been established in pursuance of subsection (1) of this section.

PART 3

Contingencies Fund

  1. The Contingencies Fund

The Commissioner may direct the payment into the Contingencies Fund established under section 7 of this Law of such sums as are appropriated for the purpose by the Legislature of the State.

  1. Use of the Contingencies Fund to meet unforeseen expenditure

(1)     Where any expenditure required for the Public Service is urgently needed at a time when the House of Assembly is in recess, or when for any other reason it is impracticable immediately to obtain the authority required under the Constitution and any other Law in force for meeting the expenditure out of the Consolidated Revenue Fund or other public funds, the Commissioner may issue a warrant authorising advances from the Contingencies Fund for the purpose of meeting the said expenditure.

(2)     No money shall be advanced from the Contingencies Fund except under the authority of a warrant issued pursuant to subsection (1) of this section.

  1. Repayments to Contingencies Fund

(1)     As the Commissioner has issued a warrant under section 24 of this Law authorising advances from the Contingencies Fund, a proposal for the appropriation of an equal amount from the Consolidated Revenue Fund or other public funds shall be submitted to the Legislative Houses of the State beginning next after the date when the warrant was issued or, if the warrant was issued during a meeting of the Legislative Houses of the State and the Commissioner so directs, then at that meeting.

(2)     A proposal submitted under this section shall be for appropriation of the said amount to the various heads of expenditure under which the expenditure would have been incurred if it had been incurred under the authority of a warrant issued by virtue of an Appropriation Law, instead of being met from the Contingencies Fund.

(3)     So soon as may be after a proposal made under this section has received the approval of the Legislative House of the State, and a warrant has been issued by virtue of such approval, the amounts advanced from the Contingencies Fund shall be repaid to the said Fund by adjustment from the said heads of expenditure.

  1. Power to make rules

Subject to the provisions of this Law, the Commissioner may make rules for the proper and efficient administration of the Fund; such rules shall be presented for the information of the Legislative House of the State.

PART 4

Citation and Interpretation

  1. Interpretation

In this Law—

“the Accountant-General” means the Accountant-General of the Cross River State;

“Appropriation Law” means the Law enacted in each year the principal purpose of which is the appropriation of public moneys for such services as are specified in such Law;

“Consolidated Revenue Fund” means the Consolidated Revenue Fund of the State established by section 56 of the Constitution of the State;

“Legislative House” means the House of Assembly of the State;

“the Commissioner” means the State Commissioner charged with responsibility for matters relating to finance;

“the Constitution” means the Constitution of the Federal Republic of Nigeria 1999;

“the Executive Council” means the Executive Council of the State;

“prescribe” means prescribe by rules made under section 10; “public moneys” include—

(a)     the public revenues of the State; and

(b)     any moneys held in his official capacity, whether temporarily or otherwise, and whether subject to any trust or specific allocation or not, by any agent of the Government, Either alone or jointly with any other person.

  1. Citation

This Law may be cited as the Finance (Control and Management) Law.

FIRST SCHEDULE

[(s.7)]

Funds and Accounts Established

[C.R.S.L.N. 5 of 1976.]

₦

Contingencies Fund ………………………………………………………….          500,000 Vehicle Advances Account…………………………………………………..        8,000,000 Miscellaneous Personal Advances Account…………………………………      12,000 Petrol Trading Account………………………………………………………..       40,000 Diesel Trading Account………………………………………………………..      20,000 School Fees (Voluntary Agency) Account ………………………………….      Unlimited Farmers Fertiliser and Poultry Deposit Account……………………………      Unlimited General Deposits Account …………………………………………………….      Unlimited Unallocated Stores Account… ………………………………………………..      50,000 Workshop Suspense Account …………………………………………………      10,000

Special Agricultural Inputs (Revolving) Accounts …………………………      100,000 Treasury Clearance Account…………………………………………………..      Unlimited Staff Housing Fund……………………………………………………………..           2,000,000 Trading Account for Government Guest Houses …………………………..      27,000

SECOND SCHEDULE

[(s. 9).]

Accounting Transactions Authorised

The Federal Government of Nigeria.

Any of the other State Governments of Nigeria.

Statutory Bodies or Corporations.

Other Governments not expressly mentioned herein.

The Crown Agents for Overseas Governments and Administrations.

TABLE

Derivation of Sections

  1. Funds and Accounts Law 1970.
  2. Finance (Control and Management) Law.
  3. Contingencies Fund Law.

1.

  1. A2 and B2.
  2. A3.
  3. A4.
  4. A5.
  5. A6.
  6. A9.
  7. A10.
  8. A11.
  9. A12.
  10. B3.
  11. B4.
  12. A8 and B5.
  13. B6.
  14. B7.
  15. B8.
  16. A7.
  17. B9.
  18. B10 and A7.
  19. B11 and A7.
  20. B12 and A7.
  21. B13.
  22. B14.
  23. B15.
  24. C3 omitting subsections (2) & (3).
  25. C4.
  26. C5.
  27. C6.

CHAPTER F2

FINANCE CONTROL LAW

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

  1. Contingency Fund Rules.
  2. Staff Housing Fund Rules.

CONTINGENCIES FUND RULES

  1. Citation

These rules may be cited as the Contingencies Fund Rules.

  1. Keeping of accounts

The accounts of the Fund shall be kept by the Accountant-General of the State and shall be audited by the Auditor-General to whom annual statements shall be forwarded by the Accountant- General as soon as possible after the close of each financial year. A copy of such accounts, together with the reports of the Auditor-General thereon, shall be presented before the Legislature and shall be examined by the Public Accounts Committee.

  1. Issue of Contingencies Warrants

No sums shall be paid out of the Fund save on the authority of a Warrant, which shall be known as a Contingencies Warrant, signed by the Commissioner. Every such payment shall be described as a Contingencies Advance. The Contingencies Warrant shall state the purposes for which expenditure is to be made and shall indicate the Head, Sub-head and Item of expenditure to which the expenditure would have been classified, if made from the Consolidated Revenue Fund and not by way of advance from the Contingencies Fund.

  1. Contingencies Warrant to be signed on Executive Council’s approval

The Commissioner shall not sign a Contingencies Warrant unless Executive Council has approved the presentation to the Legislature of a Supplementary Estimate in due course.

  1. Action to be taken on receipt of Contingencies Warrant.

When a Contingencies Warrant has been signed it shall be forwarded to the Accountant- General; a copy of the Warrant shall be forwarded to the Auditor-General. On receipt of the Warrant the Accountant-General shall forthwith accept as a charge against the Fund vouchers drawn by the officer controlling expenditure under each Head, Sub-head and Item indicated in the Warrant up to the maximum imposed by the amounts shown in the Schedule to the Warrant; each voucher shall indicate clearly the vote of charge to which the expenditure would  have been classified if incurred from the Consolidated Revenue Fund.

  1. Adjustment Vouchers to be raised as soon as Legislature passes Appropriation or Supplementary Appropriation Law

When the Legislature has passed a Supplementary Appropriation Law, or an Appropriation Law, which contains provisions in respect of Items for which Contingencies Advances have been made, the Accountant-General shall within seven days raise Adjustment Vouchers debiting the Head, Sub-head and Item for which Supplementary Appropriation has been made and crediting the Contingencies Fund with the sums expended from the Fund on the authority of the Warrant or Warrants. Every officer against whom such Adjustment Vouchers are raised shall forthwith accept it.

 

STAFF HOUSING FUND RULES

ARRANGEMENT OF RULES

RULE

  1. Establishment of a board of management of the Fund.
  2. Composition of the Board and its meeting.
  3. Provisions as to Secretary and his functions.
  4. Powers of the Board.
  5. Eligibility for loan, etc.
  6. Obligation to serve at a place other than where house is situated.
  7. Provisions relating to applications, etc.
  8. Maximum limit of loans
  9. Provisions relating to repayment of loans.
  10. Method of making loans.
  11. Extra requirement relating to property acquired from loans made by the Board.
  12. A house built or purchased with loan to be insured.
  13. Loan to bear interest.
  14. Commencement date of repayment of loan.
  15. Repayment of loan, how made.
  16. Further security for loan.
  17. Repayment of loan if the Borrower dies or ceases to be a person to whom these Rules apply.
  18. Unauthorised structural alteration prohibited.
  19. Obtaining land with part of loan.
  20. Loan for permanent capital improvement to Borrower’s house.
  21. Avoidance of doubt.
  22. Interpretation.
  23. Citation.

SCHEDULE 1

Form of Application for Advance

SCHEDULE 2

Procedure in Dealing with Applications for Loans

SCHEDULE 3

Specimen Form of Contract between Borrower and Contractor

SCHEDULE 4

Specimen Forms of Mortgage

SCHEDULE 5

Table of Repayments at Five Per Cent

SCHEDULE 6

Table of Repayments at Eight and a Half Per Cent                                                                                         

STAFF HOUSING FUND RULES

(1st January, 1972)

[Commencement]

  1. Establishment of a board of management of the Fund.

There is hereby established for the purposes of the Staff Housing Fund shown in the First Schedule to the Finance (Control and Management) Law, a board (in these rules hereafter referred to as the Board”) the function of which shall be to manage and control the said Fund.

  1. Composition of the Board and its meeting

(1)     The meeting of the Board shall be held at least two times in the year.

(2)     A meeting of the Board shall be summoned by the Secretary on the direction of the Chairman and held at such places and times as the Chairman may direct.

(3)     The quorum for a meeting of the Board shall be the Chairman (or other person presiding in the absence of the Chairman) and two other members.

(4)     Decisions reached at meetings of the Board shall be signified by the votes of a majority of members present and voting thereat, and in the case of equality of votes, the Chairman shall, in accordance with the provisions of section 53 of the Interpretation Law, have a casting vote.

  1. Provisions as to Secretary and his functions

(1)     The Secretary to the Board shall be a person in the public service and shall be assisted in the performance of his functions by such staff in the public service as may be deployed for that purpose.

(2)     It shall be the duty of the Secretary to—

(a)     record minutes of the proceedings of the Board;

(b)     attend to the Board and carry out its or its Chairman’s directives;

(c)     cause to be kept by a duly qualified officer proper accounts of financial transactions undertaken by the Board; and

(d)     do all such things as may be necessary for the due and effectual performance of the functions of the Board.

  1. Powers of the Board

(1)     The Board may consider applications from persons to whom these rules apply for loans for the purpose of building, or completing the building of, or purchasing, houses for residential purpose.

 

(2)     The Board shall not make a loan for the purpose of purchasing a house unless the house is inspected and valued by an appropriate officer of the Ministry responsible for land matters and the Board is satisfied that the applicant has a valid title deed to the land or which may be sublease or mortgage a certificate of occupancy, customary right of occupancy on condition that the Government obtains a first mortgage of the land and of any building erected, or to be erected, thereon.

  1. Eligibility for loan etc.

A person is not eligible to apply for a loan under these Rules unless at the time of the application he is a holder of a pensionable appointment in the service of the Government of the State, or in a Statutory Corporation, or in a State-owned Company, or in a Voluntary Agency Medical or Educational Institution owned and controlled by the State by virtue of which he is entitled to receive an annual allowance on completion of service.

  1. Obligation to serve at a place other than where house is situated

A person who obtains a loan from the Board and builds, completes the building of, or purchases, a house is not thereby released from his obligation to serve at a place other than the place where the house is built, completed or, as the case may be, purchased.

  1. Provisions relating to application, etc.

(1)     Application shall be made in a form, duly completed, as in Schedule 1 to these rules addressed to the Secretary who shall submit the same to the Board for consideration in accordance with the provisions of Schedule 2 of these rules.

(2)     Such application shall be considered on merit and for this purpose the Board may require an applicant to appear before it to give further and better particulars regarding his financial position, and to assist the Board further, the Senior Local Officer of the applicant’s Ministry or Department may in forwarding an application to the Board, accompany it with any special information he may have.

(3)     The applicant shall submit for the approval of the Board any relevant plans of the house he intends to build, and (unless the applicant intends to build the house by direct labour) a copy of the contract he intends to enter into with the contractor for the building of the house; and for this purpose a contract acceptable to the Board may be in the form in Schedule 3 to these rules or in a form to the like effect.

(4)     The Board shall require the applicant to enter into a Loan Agreement to guarantee the repayment of the loan and such agreement shall be as in the form set out in Schedule 4 to these rules.

  1. Maximum limit of loans

(1)     In the case of an officer described in rule 5 not below salary grade level 04, the amount of loan to which such officer is entitled shall not exceed the aggregate of his salary for six years.

(2)     In the case of an officer described in rule 5 other than an officer to whom rule 8 (1) applies, a loan shall not exceed the aggregate of six years’ salary of such officer but subject to a maximum loan of sixty thousand naira.

  1. Provisions relating to repayment of loans

(1)     Subject to rule 15 a loan is repayable within fifteen years and the rate of monthly repayment may not exceed one-third of the borrower’s monthly income.

(2)     Where it appears to the Board that a borrower is due to retire from service before the loan is completely repaid, the Board may either increase the rate of repayment or attach such other conditions regarding repayment as the Board may deem necessary.

  1. Method of making loans

(1)     Where a loan is approved for the purpose of building a house under a contract between the applicant and a contractor, payment of the loan shall be made by advances to the applicant in the manner hereinafter stated, that is to say—

(a)     on the signing of the loan agreement, an advance representing not more than twenty per cent of the loan approved or of the contract price;

(b)     further advances payable from time upon the certificate of the Permanent Secretary, representing in each case the value of the materials on site, so however that the aggregate of the advances made does not exceed sixty per cent of the contract price or of the loan approved;

(c)     a further advance at the completion of the house representing ten per cent of the contract price; and

(d)     a final advance representing ten per cent of the contract price payable at the expiration of three months after the date of the certificate and upon a final certificate of the Permanent Secretary that the work has been satisfactorily completed.

(2)     Where a person to whom these rules applies is building his house by direct labour, further advances after the initial advance shall only be made from time to time on a certificate by an independent valuer approved by the Permanent Secretary to the effect that the value of work done is commensurate with the loan previously made.

(3)     Where a loan is made for the purchase of a house, the payment shall be made—

(a)     to the borrower and the vendor informed;

(b)     upon the security of the house as stipulated in rule 17, and

(c)     upon the certificate of the Permanent Secretary responsible for land matters as to the structure and suitability of the house in relation to the amount of the loan made by the Board and to the purchase price of the house.

  1. Extra requirement relating to property acquired from loans made by the Board

(1)     Before an advance under paragraphs (b) and (c) of rule 10 (1) is made, the Permanent Secretary shall, upon the request of the Board to that effect and within thirty days of the receipt of such request, depute an officer to inspect the work and furnish a certificate authorising the payment of the relevant advance.

(2)     The Board shall ensure that a house built with a loan made by the Board is properly maintained and kept in a state of good repair by the borrower during the period of repayment and for this purpose the Permanent Secretary may depute an officer to carry out periodical inspection of the house, and the Board may direct any necessary repairs to be carried out at the expense of the borrower.

  1. A house built or purchased with loan to be insured

(1)     A house built or purchased with a loan made by the Board shall be insured by the borrower with an approved Insurance Company for not less than the full amount of the outstanding loan in appropriate case against—

(a)     loss or damage by fire, water, tornado, lightning or burglary; and

(b)     theft of the building materials in the course of construction

(2)     The policy of insurance shall be taken out in favour of the Accountant-General and maintained throughout the period of repayment of the loan and the premiums payable in respect thereof shall be paid by the borrower.

(3)     The borrower shall take out the necessary insurance policy—

(a)     in the case of a house built by the borrower, at the commencement of construction; or

(b)     in the case of a house to be purchased by the borrower, immediately after the Permanent Secretary has certified that the house is suitable for the loan.

(4)     The borrower shall ensure that for the duration of the construction of the building, he or his contractor shall insure the work as executed and fixed in position in accordance with Clause 5 (b) of Schedule 4 to these rules.

  1. Loan to bear interest

A loan made by the Board shall bear interest at the rate of three per cent.

  1. Commencement date of repayment of loan

Repayment of a loan made by the Board shall commence—

(a)     in the case of purchase, immediately after the loan is made;

(b)     in any other case, eighteen months after the loan is made.

  1. Repayment of loan, how made

(1)     The repayment of loan made by the Board together with interest thereon shall be made by equated monthly instalments the amount of which shall be specified in the loan agreement as shown in Schedule 4 to these rules.

(2)     Subject to agreement between the Board and the borrower the amount of the monthly instalments may at any time be increased so as to effect a speedier repayment so however that repayment shall always be by equated monthly instalments.

(3)     Notwithstanding the provisions of paragraphs (1) and (2) of this rule, the repayment of an outstanding balance of a loan made by the Board may be made by—

(a)     one lump sum payment, or

(b)     regular lump sum payments the amount of which shall not be less in each case than the aggregate of six monthly instalments as stipulated in the loan agreement; and if such lump sum payments do not completely discharge the outstanding balance together with the interest thereon, the repayment of any balance then outstanding shall be repayable by equated monthly instalments the amount of which shall be agreed between the lender and the borrower until such balance is fully repaid.

  1. Further security for loan

Until a loan made by the Board is fully repaid, the house in respect of which the loan was made shall be secured to the Government in a manner acceptable to the Board.

  1. Repayment of loan if the Borrower dies or ceases to be a person to whom these

Rules apply

Where before the loan made by the Board is fully repaid the borrower dies or ceases to be a person to whom these rules apply, the Board shall consider any arrangement whereby the payment of any balance then outstanding may be continued by the borrower or his next-of-kin or other legal personal representative.

  1. Unauthorised structural alteration prohibited

No structural alteration may without the consent of the Board be made to a house built with a loan made by the Board when the loan has not been fully repaid.

  1. Obtaining land with part of loan

(1)     The Board may in certain circumstances authorise the borrower to use a part (not exceeding twenty-five per cent) of the loan for the purpose of purchasing land on which the house is to be built; and the other part shall be used only for the building of the house.

(2)     Where a borrower is authorised by the Board to obtain land with part of the loan, the borrower shall deposit with the Board as the case may be the certificate of occupancy, the customary right of occupancy or a deed of sublease of the land.

  1. Loan for permanent capital improvement to Borrower’s house

The Board may, in certain circumstances, make a loan to a person to whom these rules apply for the purpose of making permanent capital improvement to a house belonging to such person which had been built on land covered with as the case may be a certificate of occupancy, the customary right of occupancy or deed of sublease and free from any encumbrance whatsoever.

  1. Avoidance of doubt

For the avoidance of doubt, where the Board is empowered by these rules to make a loan in certain circumstances the question as to what constitutes such circumstances shall be determined by the Board and the Board alone.

  1. Interpretation

(1)     In these rules unless the context otherwise requires—

“the Fund” means the Staff Housing Fund; “the Permanent Secretary” means the Permanent Secretary of the Ministry of Public Works, or his representative “public officer” includes members of staff of Statutory Corporations, State-owned Companies, Voluntary Agencies, Medical or Educational Institutions; “the Secretary” means the Secretary to the Board appointed under these rules.

(2)     In these rules and in the Schedules thereto—

(a)     words importing the masculine gender include females;

(b)     words in the singular include the plural and words in the plural include the singular.

  1. Citation

These rules may be cited as the Staff Housing Fund Rules.

SCHEDULE 1

STAFF HOUSING FUND RULES

Form of Application for Advance

Age ……………………………………

  1. Name ……………………………………………………………………………………..
  2. Rank and present salary ……………………………………………………………….
  3. Department/Ministry ……………………………………………………………………
  4. State whether married or single and if married the number of children ………
  5. Length of pensionable service ……………………………………………………….. ……………………………………………………………………………………………..
  6. Where the applicant is now living and does he hold his present house under lease and if so, wheat rent does he pay? ………………………………………….
  7. Give full descriptions of place where he desires to build giving the address ……………………………………………………………………………………………..
  8. State the location of the land on which he intends to build………………………
  9. Does the applicant own any property anywhere and if so, what rent does he derive there-from?………………………………………………………………………
  10. Has the applicant any source of income other than his salary, if so, how much? …………………………………………………………………………………….
  11. Is the applicant’s life insured, if so, for what sum and with which Company? ……………………………………………………………………………………………..
  12. Amount required ……………………………………………………………………… ……………………………………………………………………………………………..
  13. Period of refund…………………………………………………………………………. ……………………………………………………………………………………………..

DECLARATION BY APPLICANT

I HEREBY DECLARE that the loan described in the particulars furnished above is required to provide a house for the residential purposes of myself or the family or both, or for a house which I can let at a rent particularly if I am living in the place or town where the house is situated; that I fully understand the conditions under which the money will be advanced as embodied in the rules; that after making allowance for every contingency I am able to repay the advance in the instalments stipulated………………………………………………………………….

Signature …………………………………………………………………

Rank

CERTIFICATE OF HEAD OF DEPARTMENT/MINISTRY (WHERE APPLICABLE)

I CERTIFY that the particulars furnished by …………………………………………….. in the above statement are true to the best of my knowledge and belief; that the work and conduct of the applicant have been satisfactory, and I can recommend the applicant as being worthy in every respect of the concession for which he applies. I confirm that the applicant has been confirmed in his appointment. ………………………………………………………..20 …………..

……………………………………………………..                                   Signature

SCHEDULE 2

STAFF HOUSING FUND RULES

Procedure in Dealing with Application for Loans

  1. Loans are of three kinds, namely—

(a)     loan to build a house for residential purposes;

(b)     loan to purchase a house and obtain land for residential purposes, and

(c)     loan to complete the building of a house.

  1. Application for loan shall be submitted to the Secretary through the applicant’s Head of Department in the case of non-Ministerial Departments, but in the case of an officer in the Administration in the field or an officer directly under a Ministry, the application shall be submitted through the Administrative Officer in charge of that station or through the Permanent Secretary respectively.
  2. The Head of Department, Administrative Officer, or Permanent Secretary, as the case may be, may in transmitting the application, make such comments respecting the application as he thinks fit.
  3. Where the loan is for the purpose of building a house the applicant must produce as the case may be a certificate of occupancy, a customary right of occupancy or deed of sublease—

(a)     in the case of State land, the lease of the plot;

(b)     the building plan and specifications in duplicate; and

(c)     a copy of the contract entered into or to be entered into between the applicant and his contractor for the erection of the house.

  1. (1) The Board shall keep a file for each application, and the Secretary shall, as soon as an application is received, write the Permanent Secretary forwarding the plan of the house and specification in duplicate for comments.

(2)     Upon the receipt of these papers, the Permanent Secretary shall communicate his views to the Secretary covering the points—

(a)     whether the plan and specifications could provide a reasonably solid building, and

(b)     whether the tender price is reasonable in relation to known costs of work done by or for the Ministry of Public Works and Housing.

  1. If the tender price or official estimated cost of the house is higher than the amount of loan entitlement by more than 15% of the loan entitlement, the Secretary shall write to the applicant instructing him to deposit the difference into the Treasury and to forward the Treasury receipt.
  2. (a) After receipt of the replies to the inquiries referred to in paragraphs 5, 6, and 7 above, but before any further action is taken, the Secretary shall bring the case before a meeting of the Board.

(b)     If the Board disapproves the application or requires further information, it will issue specific instructions. If it approves the application, action shall proceed in accordance with the following paragraphs.

  1. The Secretary shall request the applicant to register the Deed or Mortgage with the appropriate Ministry.
  2. A Deed of Mortgage or Deed of Assignment which shall be consented to by His Excellency, the Governor, or the Commissioner charged with responsibility for land matters shall contain a certificate as under, signed by the Commissioner for Stamp Duties – “In exercise of the power delegated to me in this behalf, I hereby consent to the transaction herein contained.”.
  3. The Borrower shall forward to the Secretary in duplicate the indenture of agreement between himself and the Contractor, each copy of which shall be signed over a ten kobo stamp.
  4. After execution of the Agreement a copy shall be filed and copies shall be sent to—

(a)     The Permanent Secretary, Ministry of Public Works;

(b)     the Contractor;

(c)     the Accountant-General; and

(d)     the Applicant.

  1. After the Secretary of the Lands Division of the appropriate Ministry has received the registered Deed of Mortgage he shall file a copy and send the original copy with the Building Lease to the Accountant-General and the counterpart to the Mortgagor, and shall further send copies to—

(a)     the Accountant-General;

(b)     the mortgagee;

(c)     the Solicitor-General and Permanent Secretary; and

(d)     the mortgagor.

  1. The Borrower is responsible for requesting payment of advance to himself out of the loan and upon such request, the Secretary shall authorise the Permanent Secretary of the Ministry of Works and Housing to arrange for inspection and valuation of the work as executed and fixed in position and, upon the receipt of the certificate of the said Permanent Secretary stating the value of the work, shall make proportionate payment to the Borrower in accordance with Rule 10.
  2. The Borrower shall then send the insurance policy to the Secretary.
  3. Where the loan is for the purchase of a house—

(a)     the applicant shall produce the documents prescribed in paragraphs (a), (b) and (c) of clause 4 of this Schedule together with a copy of the drawing of the house to be purchased;

(b)     the Secretary of the Ministry of Works and Housing who shall arrange to have the house inspected by an officer in his Ministry and shall then report to the Secretary in the manner stated in Clause 5 of this Schedule shall apply;

(c)     Clauses 6 to 11 and 14 to 17 of this Schedule shall apply.

SCHEDULE 3

STAFF HOUSING FUND RULES

Specimen Form of Contract between Borrower and Contractor

ARTICLES OF AGREEMENT made the ……….. day of……………………., 20  ………… ………Between…………………………………….. of ……………………………………….. (hereinafter called “the Employer”) of the one part and…………………………… of ……………………………… (hereinafter called “the Contractor”) of the other part. WHEREAS the Employer is desirous of erecting or completing a dwelling house on the plot of land situated at ……………………………………………………. in accordance with the drawings and specifications setting forth the work to be done.

NOW IT IS HEREBY AGREED AS FOLLOWS—

  1. The Contractor for the consideration of ₦…………………..will erect on the said plot the dwelling house in accordance with detailed drawings and specifications (signed by the parties and annexed hereto) and the Contractor will complete the said dwelling house in substantial and workmanlike manner to the satisfaction of the Permanent Secretary of the Ministry of Works and Housing.
  2. The Contractor will keep the Employer indemnified against all losses incurred by reason of any breach of by-laws or regulations relating to building or building lines which are in force in the area where the dwelling house is being built.
  3. The Contractor will within …………………………………… from the date of the signing of this Agreement complete the work of building the said dwelling house and render same fit for occupation and remove from the said premises all surplus materials and rubbish.
  4. The Contractor shall, immediately before commencing the works and at all times during the progress of the works until the said dwelling house and premises are delivered up, insure and keep insured the building in the course of erection in full value thereof from loss or damage by fire, water, tornado, lightning or burglary and shall deposit with the Accountant-General all policies and receipts for premiums paid.
  5. Advances in respect of the buildings shall be paid to the Employer by the Accountant-General at the request of the Employer from time to time, upon the certificate of the Permanent Secretary of the Ministry of Works and Housing at the rate of the original advance of ten per cent of the contract price reduced to that proportion which the value of the work done together with the materials on site bears to the total value of the completed house until the actual completion of the work, and at that stage an additional ten per cent shall be paid and the remaining ten per cent paid at the expiration of three months after the date of the certificate of the said Permanent Secretary that the work has been satisfactorily completed.
  6. The Contractor shall within two days of the completion of the building give notice thereof in writing to the Permanent Secretary of the Ministry of Works and Housing, and if the building is in accordance with the plans and specifications or the plans and specifications modified or added to as provided for by subsequent agreement and the Contractor has in all other respects conformed with the provisions of this Agreement, the calculation of the period for the issue of the final certificate of the Permanent Secretary of the Ministry of Works and Housing shall commence from the date of the notice so given; and in all other cases the calculation of such period shall commence two days after the receipt by the Permanent Secretary of the Ministry of Works and Housing of notice of such completion or two days after completion to the satisfaction of the Permanent Secretary of the Ministry of Works and Housing as the case may be.
  7. If the Contractor—

(a)     without reasonable cause wholly suspends the work during construction; or

(b)     refuses or fails to remove defective work or improper materials; or

(c)     neglects or fails to proceed with the work with reasonable diligence, and if the default continues for seven days after the Employer has served him with notice in writing to desist from the default or to make good the defect, the Employer may, without prejudice to any other course of action which he may have under this contract, by notice in writing signed by him, determine this contract.

  1. If this contract is determined in pursuance of Clause 7, then—

(a)     the Employer may employ and pay any other person or carry on and complete the work and the Employer or that other person or those other persons may enter upon the site and use all materials, temporary buildings, plants or appliances thereon; and

(b)     the Contractor shall, if required by the Employer so to do, without further payment assign to the Employer the benefit of any contract—

(i)      for the supply of materials intended for use under this contract; or

(ii)     for the execution of any works under this contract, and the Employer shall pay the amount, if any, that remains to be paid under this contract for the materials supplied or for the works executed after the determination.

IN WITNESS whereof the parties hereto have hereunto set their hands and seals the day and year first above written. Signed, sealed and delivered by the said employer…………………………………………………………………. Employer In the presence of Signature………………………………………….. Name ……………………………………………….Address………………………………………………………………………………………………………Occupation………………………………………………………………………………. Signed, sealed and delivered by the said Contractor………………………………………………………………..Contractor In the presence of Signature………………………………………….. Name………………………………………………Address………………………………………………………………………………………………………Occupation………………………………………..

SCHEDULE 4

STAFF HOUSING FUND RULES

Specimen Forms of Mortgage

THIS INDENTURE made the ……………. day of …………………….. , 20 …………….. Between ……………………………………… of ……………………………………………… (hereinafter called “the Borrower” which expression shall, where the context so permits, include his successors in title) of the one part and ……………………………, the Chairman, Board of Management, the Staff Housing Fund of the Government of the Cross River State of Nigeria acting for and on behalf of the said Government (hereinafter called “the Lender” which expression shall, where the context so admits, include his successors in office) of the other part.

WHEREAS—

(1)     The Borrower is the lessee (or as the case may be, assignee) of the premises in the lease dated the………….. day of ………………. , 20 ………… made between…………………………………….. and the Borrower and registered as No …………… at page …… in volume ……………………………. in the Register of Deeds in the Land Registry at Calabar for the term and subject to the covenants and conditions therein contained.

(2)     The Borrower intends to erect a house and out-buildings on the said premises at an estimated cost of ₦ …………………… and in accordance with the plans hereto annexed.

(3)     The Borrower has applied to the Lender for an advance of ₦…………… for the purpose upon the repayment thereof with interest secured in the manner hereinafter appearing.

(4)     The Borrower requires an immediate advance of ₦………………. being an amount equivalent to ten per cent of the said loan to enable him to commence the erection of the said house and out-buildings and the Lender has agreed to advance him the said ₦ …………………………. and from time to time at the request of the Borrower to make further advances to the Borrower in the manner hereinafter appearing but so that the aggregate of those advances together with the sum of ₦………………………………. now advanced to the Borrower shall not exceed ₦ ……………………………………………………… being the total amount of this loan. In pursuance of the said agreement and in consideration of the sum of ₦……….(being ten per cent of the said loan) paid by the Lender to the Borrower (the receipt whereof the Borrower hereby acknowledges) and in consideration of the covenant of the Lender hereinafter contained for making further advances:

THIS INDENTURE WITNESSETH as follows:

  1. The Borrower hereby covenants with the Lender to pay to the Lender the sum of ₦………………………. (whole amount of loan) with interest thereon at the rate of five per cent or where applicable eight and a half per cent per annum over a period of …………………….. by equated monthly instalments or deductions from the salary of the Borrower of ₦ ………………. each, the first of such payments to be made on the first day of the month following the date on which the Permanent Secretary of the Ministry of Works and Housing or, where necessary, other competent authority, certifies that the house is fit for occupation, and each of the subsequent instalments on the first day of every succeeding month, until the whole debt is fully repaid: Provided, however, that the Borrower may effect a speedier repayment of the loan or any outstanding balance thereof and interest thereon by a lump sum payment or regular lump sum payments each of which shall not be less than the aggregate of six monthly instalments, and if the lump sum payments do not discharge the whole amount of the loan or any balance and interest thereon repayment shall be equated monthly payments the amount of which shall be agreed between the Lender and the Borrower.
  2. In further pursuance of the said agreement and for the consideration aforesaid the Borrower as beneficial owner hereby demises unto the Lender all the property comprised in and demised by the aforementioned lease and all the buildings now or hereafter to be erected thereon to hold the same unto the Lender for the residue of the term created by the said lease subject to the provision for redemption hereinafter contained.
  3. If the Borrower pays to the Lender on the dates aforesaid the said sum of ₦……………… (total amount of loan) and interest thereon at the rate herein before mentioned in accordance with the instalments or deductions from the salary of the Borrower as herein before provided, then the Lender will any time thereafter at the request and cost of the Borrower either execute a receipt for the Borrower’s money or re-assign to the Borrower the property hereby mortgaged or otherwise discharge this security.
  4. The Lender hereby covenants with the Borrower that if the Borrower in the mean-time strictly observes and performs all agreements, stipulations and conditions on his part herein contained and carries out the provisions of the Housing Fund Rules but not otherwise, then at the request of the Borrower, the Lender shall—

(a)     from time to time advance sums of money representing seventy per cent of the loan reduced to that proportion which the value of the work done together with the value of materials on site bears to the total value of the completed building until the actual completion of the work; and

(b)     when the said house and out-buildings are completed, painted and certified fit for occupation by the Permanent Secretary of the Ministry of Works and Housing and (where necessary) a certificate of occupation is granted by the competent authority, advance to the Borrower such sum as will bring the total advance to ninety per cent of the said loan; and

(c)     after three months of the issue of the above certificate and subject to another inspection by the Permanent Secretary of the Ministry of Works and Housing or his representative advance to the Borrower an amount representing the last ten per cent of the loan: Provided and it is hereby agreed that interest at the rate aforesaid shall be due and payable on the amount of each advance beginning with the date on which such advance is made to the Borrower.

  1. The Borrower hereby covenants with the Lender as follows—

(a)     that during the continuance of this security the Borrower shall keep the aforementioned house and out-buildings in good and substantial repair and if the Borrower neglects so to do the Lender may, at his discretion, enter upon the said premises in order to repair and keep in repair the said house and out-buildings without thereby becoming liable as a mortgagee in possession and his expenses of so doing shall be added to the principal money hereby secured and bear interest accordingly; and

(b)     that from the date of taking over of the building from the Contractor and during the continuance of this security the Borrower shall insure and keep insured against loss or damage by fire, water, lightning, tornado and burglary for the full value thereof; and the insurance shall be with the Manilla Insurance Company Limited and the receipts for the policy and premiums shall as and when received by the Borrower be deposited with the Lender, and if the Borrower makes default in securing such insurance or in paying any premiums the Lender may insure as aforesaid and pay the premiums and such expenses of the Lender shall be payable by the Borrower on demand and until so paid shall be added to the principal sum hereby secured and bear interest accordingly.

  1. The Borrower further covenants with the Lender that the Borrower shall not, during the continuance of this security, make an under-lease or sublet or otherwise part with the possession of the mortgaged premises without the consent in writing of the Lender.

IN WITNESS whereof the parties have hereunto set their hands and seals the day and year first above written. Signed, sealed and delivered by the Borrower………………………………………………………………….

Borrower In the presence of Signature…………………………………………..

Name ……………………………………………….

Address…………………………………………….

………………………………………………………..

Occupation………………………………………..

Signed, sealed and delivered by the Lender.

…………………………………………………………………

Chairman, Board of Management,

Staff Housing Fund, Calabar

In the presence of

Signature…………………………………………..

Name ……………………………………………….

Address…………………………………………….

………………………………………………………..

Occupation………………………………………..

 

SCHEDULE 5

STAFF HOUSING FUND RULES

Table showing monthly repayment of loans by way of annuity over a period of fifteen years with interest at five per cent per annum.

 

Amount of Loan Total Amount of Loan and Interest Repayable Amount of monthly Repayment of Loan and Interest
₦          K ₦        k ₦         K
100.00 144.50 0.81
200.00 289.00 1.61
1,000.00 1,445.121/2 9.05
2,000.00 2,890.25 18.10
4,000.00 5,780.50 36.20
6,000.00 8670.75 54.30

 

 

 

 

SCHEDULE 6

STAFF HOUSING FUND RULES

Table showing monthly repayments of loans by way of annuity over a period of fifteen years with interest at eight and a half per cent per annum.

 

Amount of Loan Total Amount of Loan and Interest Repayable Amount of monthly Repayment of Loan and Interest
₦          K ₦        k ₦         K
100.00 181.50 0.01
200.00 361.50 2.01
1,000.00 1,807.50 10.05
2,000.00 3,615.00 20.09
4,000.00 7,230.00 40.17
6,000.00 10,845.00 60.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Law Nigeria Admin
Law Nigeria Admin

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