HOME FINANCE DEPARTMENT

The Home Finance Department handles matters relating to financial relations between the Federal, State and Local Governments. It is the Secretariat of the Federation Account Allocation Committee (FAAC) as provided in Section 5 of the Federation Account Act of 1982. It coordinates the activities relating to the supervisory role of the Ministry over Nigeria Customs Service as well as Government Parastatals and Agencies in the financial service sector. Also, it deals with matters on trade facilitation and issues of export and import guidelines/documentation requirements. The Department represents the Ministry on the Boards of Nigeria Customs Service, Nigeria Deposit Insurance Corporation, Securities and Exchange Commission, Nigeria Export-Import Bank, National Insurance Commission, Investments and Securities Tribunal and the Agricultural Credit Guarantee Scheme Fund.

The Home Finance Department is made up of three (3) Divisions namely; Trade Relations Division, Banking and other Financial Institutions Division and States Finances and Public Investment Division.

1. TRADE RELATIONS DIVISION

Trade Relation Division deals with all the policy issues relating to the Nigerian Exports Supervision Scheme (NESS) and Comprehensive lmport Supervision Scheme (CISS). The Division coordinates the activities relating to the supervisory role of the Ministry over the Nigeria Customs Service and also supervises, in collaboration with the Central Bank of Nigeria (CBN) the activities of Pre-shipment Inspection Agents (PIAs) and Monitoring & Evaluation Agents (MEAs) appointed by the FGN under the purview of the Ministry to provide surveillance services on the Nigerian Oil/Gas and Non-oil exports.

Key Projects/Initiatives

• Represents the Ministry on the Technical Committee on NESS and CISS;
• Processes the appointment of Pre-shipment Inspection Agents (PIAs) and Monitoring & Evaluation Agents (MEAs) in collaboration with the Ministry’s Procurement Department;
• Processes the appointment of banks for NESS Fee collection on Oil/Gas and Non-oil exports;
• Collaborates with CBN on verification exercises on the activities of dealer banks (collecting banks);
• Carries out quarterly verification exercises on the activities of PIAs for Oil and Non-oil exports;
• Conducts sensitization workshops on Nigerian Exports Supervision Scheme (NESS) for regulators, exporters, operators, and the general public in collaboration with the CBN;
• Processes payments of invoices submitted by the PIAs on both Oil/Gas and Non-oil based exports after verification by the CBN;
• The division in collaboration with the Ministry of Mines and Steel Development (MMSD) is in the process of finalizing the review of the Guidelines for Solid Mineral Exports;
• Regular review of Import/Export Guidelines to reflect best practices in the sector;
• Maintains records of Returns on Capital Importation;
• Verification of invoices/claims of services provided by the Scanning/ICT Service Providers for payment;
• Currently superintends the transfer of ICT services from Webb Fontaine to the Nigeria Customs Services
• Respond to all issues relating to AfCFTA

 

2. BANKS AND OTHER FINANCIAL INSTITUTIONS DIVISION (BFI)

The Banks and other Financial Institutions (BFI) Division is charged with the responsibility of collaborating with the following agencies under the purview of the Ministry in the implementation of Government Policies to ensure financial stability.

• Nigerian Deposit Insurance Corporation (NDIC);
• Securities and Exchange Commission (SEC);
• Nigerian Export-Import Bank (NEXIM);
• National Insurance Commission (NAICOM);
• Assets Management Corporation of Nigeria (AMCON)
• Investment and Securities Tribunal (IST);

Nigeria Deposit Insurance Corporation (NDIC)

The Nigeria Deposit Insurance Corporation (NDIC) insures all deposit liabilities of licensed banks and other financial institutions and ensures depositors’ protection towards enhancing public confidence in the banking system through periodic examination of deposit money banks and primary mortgage institutions in collaboration with the Central Bank of Nigeria.

Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is the apex regulatory authority for the supervision and regulation of the Capital Market with the view to ensuring the protection of investors and the development of the capital market. It also registers and supervises the issuance of securities of public companies, mergers and acquisitions as well as regulates the activity of market operators.

Nigerian Export-Import Bank (NEXIM)

The Nigerian Export-Import Bank (NEXIM) was established to undertake the business of export credit guarantee and export credit insurance. It provides export/import financing and grants loans to the non-oil sector e.g., manufacturing, agriculture, solid minerals and services as well as export credit guarantee in local and foreign currencies and encourages exporters in export business.

National Insurance Commission (NAICOM)

NAICOM is the regulatory authority of the Insurance Industry.  Its operations are geared towards effective regulation, protection of Insurance policy holders, the establishment of standards for the conduct of Insurance business and good corporate governance.  It also facilitates financial inclusion and financial sector development to increase insurance penetration through the development of micro-insurance.

Investment and Securities Tribunal (IST)

The IST was established to adjudicate amicable settlement/resolution of disputes involving stakeholders in the Capital Market and ensure quick dispensation of judgments. The Ministry is being represented on the Tribunal to ensure that its adjudication is in line with government policy.

Financial System Strategy (FSS 2020)

The FSS 2020 is coordinated by a Steering Committee with its Project Management Office (PMO) domiciled at CBN and jointly chaired by the Honourable Minister of Finance and the CBN Governor. The FSS 2020 is the government’s framework for reforming the Nigerian financial services sector and facilitating its implementation.

 

3. SFI Division

The State Finances and Public Investment Division (SFI) statutory responsibilities are as follows;

• Administration of Financial relations between the Federal, State and Local Governments.

• Processes State Governments’ requests for irrevocable Standing Payment Order (ISPO);
• Provides the Secretariat for the Federation Account Allocation Committee (FAAC) monthly meetings;
• Handles matters relating to public investment;

• Coordinates the hosting of the Annual Conference of the National Council of Finance and Economic Development (NACOFED);
• Coordinates the States’ Fiscal Transparency, Accountability and Sustainability Programme.

 

Agricultural Credit Guarantee Scheme Fund (ACGSF)

 

The Agricultural Credit Guarantee Scheme Fund was established by Decree No. 20 of 19977 to guarantee agricultural credit facilities granted to farmers. The Federal Government and the Central Bank of Nigeria both contribute to the Fund in the ratio of 60% and 40%, respectively. The CBN however doubles as the Managing Agent of the Scheme and the Secretariat of the ACGSF. The Director, Home Finance serves as the Chairman of the Board of ACGSF

 

List of key Programmes/ Initiatives;

• Coordinates financial relations amongst the Federal, State and Local Governments, Parastatals and Government-owned Companies;
• Established close liaison with Revenue Generating Agencies such as NNPC, FIRS, NCS DPR & MMSD, etc on financial matters on behalf of the Federal Government of Nigeria;
• Liaises with DMO over States’ debt matters;
• Serves as the Secretariat of the Federation Account Allocation Committee (FAAC);
• Organizes the Annual National Council on Finance and Economic Development (NACOFED);
• Handles matters relating to public investments such as the Sovereign Wealth Fund ;
• Liaise with the OAGF on issues relating to the disbursement of funds to the three tiers of government
• Collaborate with the OAGF on the management of Special Accounts of the Federal Government and the Federation.