The mandate of the Federal Ministry of Finance requires that it should possess core institutional and operational competencies in the economic activities that are very critical to the nation’s resource profile and expenditure framework. These include Oil and Gas Fiscal, Tax Policy, and Public Private Partnership, among others. Up till early 2013, the responsibility for matters relating to each of these sectors was diffused amongst its various departments/agencies without a central sector-focused coordinating Unit/Department.
The Technical Services Department was thus established to build institutional expertise and specialized skills in the Ministry, which will effectively engage other specialists in the individual sectors and also facilitate a more scientific approach in the projection of revenue, expenditure, planning and management of the economy.
The Technical Services Department is made up of three Divisions: Oil and Gas Fiscal; Public Private Partnership; and Tax Policy.
The core functions of the Department include the following:
Oil and Gas Fiscal
• Providing Scenario-based revenue forecasting;
• Generating sustainable expenditure forecasts;
• Providing inputs into petroleum fiscal design and fiscal framework of other commercially exploited solid minerals;
• Supporting and contributing to the negotiation of production sharing contracts (PSCs); and providing support to FIRS’ audit function;
• Providing support and analysis on power sector issues.
Public Private Partnership Financing
• Assessing the total fiscal commitments and the affordability of PPP projects;
• Preparing an economic risk analysis of all proposed PPP projects; analyzing the financial nature of liabilities, and their sensitivity to changes in market rates, shift in key variables, etc., and advise on whether and to what extent government support should be allocated to such projects;
• Identifying financial and credit risk associated with all PPP transactions; etc.