LAGOS STATE FINANCE (CONTROL AND MANAGEMENT) LAW

 

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LAWS OF LAGOS STATE, NIGERIA

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LAGOS STATE FINANCE (CONTROL AND MANAGEMENT) LAW

 

LAGOS STATE FINANCE (CONTROL AND MANAGEMENT) LAW

CHAPTER F2 LAWS OF LAGOS STATE

 


ARRANGEMENT OF SECTIONS 

PART 1- Citation and Interpretation

1.       Citation. 

2.       Interpretation. 

PART 2 – The Finance Board

3.       Establishment of Finance Board. 

4.       Staff of the Board. 

5.       Board may issue financial instructions. 

6.       Board may give directions as to the form of accounts. 

PART 3 – General Provisions relating to Public Money

7.       Functions of the Commissioner. 

8.       Officials of Ministry to have access to records, etc. 

9.       Ministry may require production of information. 

10.     Authority for remission. 

11.     Collection of public money. 

12.     Bank account. 

13.     Services. 

14.     Deposits. 

15.     Refund. 

16.     Losses. 

PART 4 – Investments

17.     Authorisation of investments. 

18.     Investments General, procedure concerning these. 

19.     Income of Investments General. 

20. Fluctuation in value of investments of Investments General. 

PART 5 – Authorisation of Expenditure

21.     Unexpended votes to lapse. 

22.     Provision for Appropriation Law not in force. 

23.     Power to limit or suspend expenditure. 

24.     Payments from the Contingencies Fund. 

PART 6 – Other Public Funds of the State

25.     Specification of public funds allocated by law. 

26.     Carrying forward of annual balance. 

27.     Interest and investment fluctuation to accrue to certain funds. 

28.     Interest on Development Fund. 

29.     Interest and investment fluctuation to accrue to Consolidated Revenue Fund in certain cases. 

30.     Fluctuation in value of investments. 

31.     Capital Expenditure and Development Fund. 

32.     Power of the State Commissioner to make rules regulating payment into and disbursement from funds. 

PART 7 – Miscellaneous

33.     Annual accounts. 

34.     Notification of irregularities. 

Schedule 

 

CHAPTER F2

FINANCE (CONTROL AND MANAGEMENT) LAW 

[1968 No. 3.; 1969 No. 3.; 1970 Act No. 37.]

 

A Law to provide for the Control and Management of the Public Finances of the Lagos State and for Matters connected therewith.

 

[1st April, 1968]             [Commencement.]

 

PART 1

1.       Citation

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

2.   Interpretation

In this Law, unless the context otherwise requires, the following expressions have the meanings hereby assigned to them respectively, that is to say

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

“accounting officer” means any officer charged by the Ministry with the duty of accounting for any service in respect of which moneys have been appropriated by law;

“Auditor-General” means the Auditor-General of the State;

[1970 Decree No. 37.]

“Board” means the Finance Board established by section 3 of this Law;

“State Commissioner” means the State Commissioner charged with responsibility for finance and economic development;

“Consolidated Revenue Fund” means the Consolidated Revenue Fund of the State established by the Lagos State (Interim Provisions) Decree 1968;

“contingencies Fund” means the fund established by section 25;

“Permanent Secretary” means the Permanent Secretary Lagos State Ministry of Finance and Economic Development.

“financial instructions” means instructions issued under section 5;

“financial year” means a period of twelve months beginning on the first day of April in any year;

“Government” means the Government of Lagos State;

“Governor” means the Governor of Lagos State;

“Ministry” means the Lagos State Ministry of Finance and Economic Development;

“public money” includes –

(a)     the public revenues of the State;

(b)     any trust or other moneys held by any officer in his official capacity whether temporarily or otherwise either alone or jointly with any other person, whether that other person is an officer or not;

“public office” means any office of emolument in the public service of the State;

“public officer” means the holder of any public office, including any person appointed to act in any such office;

“public service” means the service of the State in a civil capacity in respect of the Government of the State;

“public stores” means any movable property in the ownership of the Government;

“revenue” means all tolls, taxes, imposts, rates, fees, duties, fines, penalties, forfeitures, rents, dues and all other receipts of the Government, from whatever source arising over which the State has power of appropriation, including proceeds of all loans raised;

“statutory expenditure” means any expenditure which, by law, is charged on the Consolidated Revenue Fund, the general revenue and assets of the State or other public funds of the State;

“sub-accounting officer” means any imprest holder, collector of revenue, or other person whose duties involve responsibility in connection with public money;

“treasury approval” means with the approval of the Ministry.

 

PART 2 – The Finance Board

3.   Establishment of Finance Board

(1)     There shall be a board to be known as the “Finance Board” which shall consist of

(a)     the State Commissioner, who shall be the Chairman;

(b)     the Secretary to the State Government, who shall be the Deputy Chairman;

(c)     the Permanent Secretary;

(d)     the Accountant-General of the State;

(e)     the Permanent Secretary of the Lagos State Ministry of Works and Transport; and

[1969 No. 3.]

(f)      the Permanent Secretary of the Lagos State Ministry of Agriculture and Co-operatives, Commerce and Industry.

(2)     The Board may determine its own rules of procedure and may act notwithstanding any vacancy in its membership.

 

4.   Staff of the Board

The State Commissioner may designate any officer of the Ministry to be secretary of the Board and shall provide for the Board from among the officers of the Ministry such other employees as are necessary for the proper conduct of the business of the Board.

 

5.   Board may issue financial instructions

(1)     Subject to the provisions of this Law the Board may, by instructions issued in accordance with the provisions of this section, make provision for regulating the management of the financial business of the Government, including provision¾

(a)     for securing that all moneys received on account of the revenues of the State or otherwise shall be paid into the Consolidated Revenue Fund or other appropriate public fund of the State;

(b)     for the procedure to be followed in respect of payment of money into the said fund and the withdrawal of money therefrom;

(c)     for the custody of public moneys, and of documents issued in connection with the expenditure, receipt or management of public money;

(d)     for regulating imprest accounts to be managed by sub-accounting officers;

(e)     for regulating the opening of bank accounts by accounting and sub-accounting officers and prescribing the duties of such officers in relation to such accounts;

(f)      for the survey of cash, stamps, bank balances, or public stores, in the possession or under the control of any public officer;

(g)     for the rendering of reports and holding of inquiries where any loss or shortage of public money or public stores occurs or may have occurred;

(h)     prescribing the purposes for which advances from public funds to public officers or other persons may be issued, for prescribing the amount of such advances, the conditions attaching to any such advances, and the procedure in connection therewith;

(i)      for the establishment of Boards to examine tenders for Government contracts and for the procedure for, or in connection with, tenders;

(j)      for the supervision, custody, and control of public stores, and for regulating the purchase of stores;

(k) for the insurance of public property and public stores.

 

(2)     The instructions entitled “Revised Financial Instructions of the Government of Federation of Nigeria, 1962”, as amended at the date of the commencement of this Law, shall, apply to the State and so far as not inconsistent with the Lagos State (Interim Provisions) Act 1968, have effect as if made under this section and may be amended or revoked accordingly.

[1968 No. 13.]

(3)     Instructions issued under this section may be published in such manner as the Governor may direct and shall come into force upon such date as may be specified therein.

 

6.   Board may give directions as to the form of accounts

The Board may direct from time to time the manner and form in which the accounts of the State and the accounts of the several departments thereof shall be kept, and may direct any person receiving, managing or disposing of public moneys to keep any books, records or accounts that the Permanent Secretary considers necessary.

 

PART 3 – General Provisions relating to Public Money

7.   Functions of the Commissioner

The State Commissioner shall so supervise the expenditure and finances of the State as to ensure that a full account is made to the Executive Council of the State and that financial control is maintained, and for such purposes shall, subject to the provisions of this Law, have the management of the Consolidated Revenue Fund and the supervision, control and direction of all matters relating to the financial affairs of the State which are not by law assigned to any other State Commissioner or authority.

 

8.   Officials of Ministry to have access to records, etc.

The Permanent Secretary or any officer authorised by him shall be entitled to inspect all offices and have access to all official books, documents, and other records in the State as may be necessary for the exercise and performance of the powers and duties of the Ministry under this Law.

 

9.   Ministry may require production of information

The Ministry may require from any officer or any agent of Government any account, return, information, document or report that it considers necessary for the due performance of its duties.

 

10.   Authority for remission

(1)     Where any sum is due to the Consolidated Revenue Fund or any other public fund, the Ministry may remit payment thereof but the power conferred on the Ministry by this section does not extend to the remittance generally of any sums due on account of revenue.

(2)     Except as is provided by subsection (1) of this section or by any Law of the State no sum due to the Consolidated Revenue Fund or other public fund of the State shall be remitted.

 

11.   Collection of public money

Every person employed in the collection or management, or charged with the receipt, of public money, and every person who receives or collects public money shall pay such public money coming into his hands to the credit of the Consolidated Revenue Fund or other appropriate fund through such officers, banks or persons and in such manner as the Ministry may direct.

 

12.   Bank accounts

No public or official account shall be opened in any bank without the prior authority in writing of the Ministry and no bank shall permit an overdraft of any public or official account without the authority in writing of the Ministry.

 

13.   Services

Where any service is provided by the Government to any person and the Ministry is of the opinion that the whole or part of the cost thereof should be borne by the person to whom it is provided, the Ministry may, subject to the provisions of any written law relating to such services direct the fee that may be charged for such service.

 

14.   Deposits

(1)     Where any money is received by any public officer from any person, institution or other government as a deposit for any purpose, the officer shall hold or dispose of the money in accordance with any financial instructions for the time being in force and shall not pay the money directly into the Consolidated Revenue Fund.

(2)     The provision of subsection (1) shall not apply to incidental or refundable deposits received from pupils by a public officer in charge of a government institution.

(3)     In this section

“government institution” means an institution established under the Education Law;

[Cap. E1.]

“incidental or refundable deposits” means the deposits made by pupils in government institutions from which the pupils’ incidental expenses fall to be met, or deposits which are intended to be returned or repaid to the pupils, and includes deposits made by such pupils¾

(a)     or the purchase of school equipment;

(b)     as against any damage that may be caused by them to school property; and

(c)     from profits derived from such activities as may be organised in the schools;

“pupil” means a person of any age for whom education is provided under the Education Law.

[Cap. E1.]

 

15.   Refund

Where any money is paid by any person for any purpose that, in the opinion of the Ministry, is not fulfilled, the money may be returned or repaid to that person less such sum as in the opinion of the Ministry is properly due to the Government for any services rendered.

 

16.   Losses

Where a loss has occurred of any moneys forming part of the Consolidated Revenue Fund, or other public funds of the State, or it is necessary to make a further issue therefrom in respect of moneys already issued therefrom which have been misappropriated or lost, or it is necessary to make an issue therefrom 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 State Commissioner under the authority of an Appropriation Law, or Supplementary Appropriation Law.

 

PART 4 – Investments

17.   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 consist of any of the following:

(a)     deposits with a bank, or with the Joint Consolidated Fund, either at call or subject to notice not exceeding six months;

(b)     cash balances with the Crown Agents for Overseas Governments and Administrations, the Government of the United Kingdom, or any other Government in the Federation of Nigeria; or

(c)     any investments in which a trustee in Nigeria may lawfully invest trust funds or such other investments as may from time to time be authorised under any law in force in the State;

and the disposition of moneys of the Consolidated Revenue Fund or of such other public fund (subject as aforesaid) for any such purpose shall need no legislative authority other than that contained in this section and may be made by the Accountant-General and, in the case of investments, by the Crown Agents for Overseas Governments and Administrations or by any bank or stockbroker approved by the Board in accordance with specific instructions issued by the State Commissioner.

(2)     The disposition of any moneys from the Consolidated Revenue Fund or other public funds of the State or for any purpose, other than the form of deposit or investment specified in subsection (1) of this section, shall be made only in accordance with the procedure prescribed under any law in force in the State or in accordance with the provisions of law regulating the fund in question.

 

18.   Investments General procedure concerning these

(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 the Consolidated Revenue Fund by virtue of section 17;

(b)     any investments held in respect of moneys being part of the Contingencies Fund;

(c)     such investments held in respect of the public funds of the State specified in the Schedule as the State Commissioner shall designate in writing:

Provided that the State 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 are chargeable to the Consolidated Revenue Fund.

 

19.   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 come into operation in respect of investments included in the record of Investments General at any time during the period of twelve months ending on the 31st day of March 1969, and in respect of all interest accruing within such period.

 

20.   Fluctuation in value or investments of Investments General

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

(2)     Any appreciation or depreciation arising from the revaluation of such securities in accordance with subsection (1) of this section, together with any profits or losses arising from the sale or 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.

 

PART 5 – Authorisation of Expenditure

21.   Unexpended votes to lapse

Subject to any express provision of an Appropriation Law or Supplementary Appropriation Law, moneys appropriated thereby and not expended shall lapse and accrue to the Consolidated Revenue Fund or the Development Fund, as the case may be, at the expiration of the year in respect of which they are appropriated.

 

22.   Provision for Appropriation Law not in force

(1)     If the Appropriation Law (whether in respect of appropriations from the Consolidated Revenue Fund or from the Development Fund) has not come into operation at the commencement of any financial year, the State Commissioner may authorise by warrant the issue from the Consolidated Revenue Fund or the Development Fund, as the case may be, of such moneys as are necessary for carrying on the services of the Government at a level not exceeding the 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 the shorter.

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

 

23.   Power to limit or suspend expenditure

Notwithstanding the issue of a warrant, the State Commissioner may limit or suspend expenditure (not being statutory expenditure) with or without cancellation of the warrant if in his opinion financial exigencies or the public interest so require.

 

24.   Payments from the Contingencies Fund

(1)     The Contingencies Fund may be utilised for making money available to meet expenditure (other than statutory expenditure) which is not provided for in the Appropriation Law for the current year and which although otherwise falling to be met out of the Consolidated Revenue Fund or Development Fund cannot be postponed or cannot without serious injury to the public interest be postponed until a Supplementary Appropriation Law providing for it can be made.

(2)     Any amount issued from the Contingencies Fund shall be regarded as an advance from that Fund and every such advance shall accordingly be repaid to the Fund as soon as the expenditure in respect of which the advance was made has been authorised by a Supplementary Appropriation Law.

 

PART 6 – Other Public Funds of the State

25.   Specification of public funds allocated by law

(1)     There shall be the public funds specified in the Schedule to this Law.

(2)     Whenever money is allocated by law to establish a fund or whenever it shall appear to the State Commissioner that any public fund which is the property of the State, or which comes into the possession of the State or of any public officer on behalf of the State, but which is not specified in the Schedule is by the provisions of law regulating such fund allocated for a specific purpose, and that for that reason such fund should not form part of the Consolidated Revenue Fund, the State Commissioner shall, by order, amend the Schedule by the addition of the title of the fund and a reference to the specific purpose to which it is allocated.

(3)     The State Commissioner may, by order, amend the Schedule by the deletion therefrom of the particulars relating to any fund which may lawfully be absorbed into and form part of the Consolidated Revenue Fund or which has otherwise ceased to exist.

 

26.   Carrying forward of annual balance

Subject to the provisions of any law regulating any public fund, the balance remaining in such fund at the end of each financial year shall during the continuance of the existence of such fund be carried forward to the credit of that fund at the beginning of the next financial year.

 

27.   Interest and investment fluctuation to accrue to certain funds

Unless by the provisions of law regulating any fund specified in the Schedule (including any rules relating to that fund) it is provided that interest earned by that fund shall accrue to the Consolidated Revenue Fund, that interest, and certain all receipts, earnings and other items accruing in respect of such fund, shall be credited to the fund itself, and any appreciation or depreciation in the value of any investments of such fund arrived at in accordance with section 30 shall similarly be taken to the account of that fund.

 

28.   Interest on Development Fund

 

Interest earned by the Development Fund shall accrue to that fund.

29.   Interest and investment fluctuation to accrue to Consolidated Revenue Fund in certain cases

Where by the provisions of law regulating any fund specified in the Schedule (including any rule relating to that fund) it is provided that interest earned by that fund shall to accrue to the Consolidated Revenue Fund, any depreciation in the value of investments of that fund and any losses on the sale or redemption of such investments shall be borne by the Consolidated Revenue Fund and any appreciation in the value of investments of such fund, and any profit on the sale or redemption of such investments, shall similarly accrue to the Consolidated Revenue Fund.

 

30.   Fluctuation in value of investments

(1)     The Accountant-General shall in each financial year value any securities, other than those forming part of Investments General as provided for in section 18 held by any of the funds specified in the Schedule by assigning thereto the mean market price of such securities at the close of business on the last day in the financial year for which such information is available.

(2)     Any appreciation or depreciation arising from the revaluation of such securities in accordance with subsection (1) of this section, together with any profits or losses arising from the sale or redemption of such securities, shall be credited or debited direct to the Consolidated Revenue Fund or to the fund in question in accordance with the provisions of section 27, 28 or 29, as the case may be.

 

31.   Capital Expenditure and Development Fund

(1)     There shall be paid into the Capital Expenditure and Development Fund all sums being

(a)     loans raised by the Government for expenditure on capital or other development projects;

(b)     grants of money made to the State for development purposes by any person, Government or institution;

(c)     any appropriations by any law in force in the State from the revenues of the State for expenditure on capital or other development projects.

(2)     The State Commissioner shall cause to be prepared in each financial year, estimates of the receipts and expenditure in respect of the Development Fund for the next following financial year and such estimates shall be submitted to the Executive Council of the State.

(3)  Whenever

(a)     any expenditure from the Development Fund is incurred or is likely to be incurred in any financial year upon any service which is in excess of the sums provided for that service by the Appropriation Law relating to that year; or

(b)     any expenditure from that Fund is incurred or is likely to be incurred in any financial year upon any service not provided for by the Appropriation Law;

a Supplementary Appropriation Law relating to that year, which shall contain that expenditure under appropriation heads, shall be made.

(4)     Subject to the provision of section 17 no moneys shall be withdrawn from the Development Fund except upon the authority of a warrant under the hand of the State Commissioner and no such warrant shall be issued for the purpose of meeting any expenditure from that Fund unless that expenditure has been authorised by an Appropriation Law or a Supplementary Appropriation Law.

 

32.   Power of the State Commissioner to make rules regulating payment into and disbursement from funds

(1)     Subject to the provisions of this Law, the State Commissioner may make rules regulating payments into and disbursements from any fund (other than the Development Fund) established by or in accordance with the provisions of this Law and all such payments and disbursements shall be made in accordance with those rules.

(2)     Until rules are made in respect of a fund or until the expiration of a period of six months commencing from the date of coming into operation of this Law, whichever shall be the sooner, disbursements may be made in accordance with instructions issued by the State Commissioner.

PART 7 – Miscellaneous

33.   Annual Accounts

Within a period of six months the 31st day of March in each year, or such longer period thereafter as the Governor may, by order, appoint, the Accountant-General shall transmit to the Auditor-General accounts showing the financial position of the State on the said 31st day of March which shall include—

[1970 Decree No. 37.]

(a)     a statement of assets and liabilities;

(b)     a statement showing the sums estimated to be received as revenue into the Consolidated Revenue Fund and the sums actually so received in the period of account;

(c)     a statement showing the sums estimated to be issued out of the Consolidated Revenue Fund and the sums actually so issued in the period of account;

(d)     a statement showing the sums estimated to be received as revenue of the Development Fund and the sums actually so received in the period of account;

(e)     a statement showing the sums estimated to be issued out of the Development Fund and the sums actually so issued in the period of account;

(f)      such other statements as the Governor or the Finance Board may from time to time require.

 

34.   Notification of irregularities

If at any time it appears to the Auditor-General that any major irregularities have occurred in receipt, custody or expenditure of public moneys, or in receipt, custody, issue, sale, transfer or delivery of any stocks, security, public stores or other Government property or in accounting for the same, he shall immediately bring the matter to the notice of the Ministry.

[1970 Decree No. 37.]

 

SCHEDULE [Section 25]

PART 1 – Funds Established with effect from 1st April, 1968

1.       Contingencies Fund The fund established by section 25 of this Law for the purposes specified in section 24. 

2.       Development Fund To finance the general capital expenditure of Government, including non-recurrent statutory expenditure not suitable for inclusion in the Estimates of Recurrent Expenditure. 

3.       Government Staff Housing Fund To finance the building of houses by African Officers in the Public Service. 


PART 2 – Treasury Funds deemed to be Public Funds

1.       Personal Advances Fund To provide for advances to members of the Public Service and other persons in accordance with Financial Instructions. 

2.       Treasury Clearance Fund To provide for acceptance and repayment of deposits referred to in section 14 of this Law; and for non-personal advances and to provide for payments on behalf of other States. 

 

LAWS OF THE FEDERATION OF NIGERIA 

 

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