Here in this post, you are going to read about the 6 functions of the Nigerian ministry of finance and what its role is as an agency of government.
The Nigerian Ministry of finance, whether it is in the federal level or in the state level, saddled with a peculiar responsibility, which has to do with the management of government money.
That is in a layman description of the ministry of finance. But in this article, I will love to describe the Nigerian Ministry of Finance in a broader perspective.
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And that is, the Nigerian Ministry of Finance is a government Ministry, who saddled with the responsibility of managing government financial assets.
The Ministry of Finance is also charged with the responsibility of managing proposed economic, as well as, financial policies of Nigerian.
The Nigerian Ministry of Finance is expected to coordinate these activities and also manage same in accordance with the law.
Besides such responsibilities on the part of the Nigerian Ministry of Finance, there are some other functions performed by the Nigerian Ministry of Finance, which are empowered by law.
In this article, I am going to explain quite a number of these functions. Below are the functions and the duties of the Nigerian Ministry of Finance.
What Are Functions Of Nigerian Ministry Of Finance?
As stated earlier, the ministry of finance was created for a particular purpose, and the purpose was to manage government funds, or called it, public funds, formulates financial policies, and as well, implement same for the purpose of growing Nigerian economy. Besides this, other functions of the Nigerian Ministry of Finance are explained below:
1. Ministry Of Finance Prepares Annual Fiscal Budgets
This is a major function of the Nigerian Ministry of Finance. Apart from numerous functions of the Nigerian Ministry of Finance, the Ministry is also charged with the responsibility of preparing the either federal government annual budget or the state government annual budget. Without such fiscal budget, as prepared by the Nigerian Ministry of Finance, it would be difficult for the government to execute is functions, by way of providing those necessities of life effectively for its citizenry. In other words, government would be stuck at performing this duty. Therefore, to avoid any financial deficit in the course of carrying out its functions, there is need for the Nigerian Ministry of Finance to prepare the annual fiscal budget. It is also the responsibility of the Ministry of Finance to issue out regulations that are adequate for the execution of the budgets.
2. Ministry Of Finance Manages Government Financial Assets:
Another function of the Nigerian Ministry of Finance falls under the management of government financial assets. Every government has an asset. What is an asset?
In financial accounting, an asset is any resource owned by the business. Anything tangible or intangible that can be owned or controlled to produce value and that is held by a company to produce positive economic value is an asset. Simply stated, assets represent value of ownership that can be converted into cash.
Therefore, one of the functions of the Nigerian Ministry of Finance is that of managing such assets that are owned by the government.
3. Ministry Of Finance Proposes Bills That Related To Government Employees Management
Proposal of bills is yet another function of the Nigerian Ministry of Finance. The Nigerian Ministry of Finance is charged with the responsibility of proposing bills, and these bills proposed must relate to the management of employees of the government.
Do not for, the employees of government need to be properly managed. The reason of this is obvious. Without such staff management, the government employees may not put up their best in discharging their responsibilities.
So the government to get the best from its staff, it must manage them properly. One of the ways to achieve this, is to propose bills that are related to the management of employees of the government, and the Ministry responsible for this function, is the Nigerian Ministry of Finance.
And if such bills must relate to the management of employees of the government, it must make sure that, it covers staffing, and employees’ salaries, and other benefits, including their pensions.
4. Amortizes Debts And Also Coordinates Financial Activities
The amortization of government debt is mainly, the responsibility of the Nigerian Ministry of Finance. For instance, every, Ministry, derives its finance from the Ministry of Finance.
Be that as it may, the Nigerian Ministry of Finance can amortize debt of every Ministry, and can as well, make sure that, it coordinates every activity that is carrying out within the jurisdiction of the power of the Nigerian Ministry of Finance, for these various Ministries, including those entities that are related to the Ministries.
As far as financial transactions or activities are concerned, there could be an issue or a situation where funds owed, cannot be recovered, such funds could be write off, or clear off and/or amortized.
If such cases are found in public funds management, debt could be amortized, and the only Ministry responsible for this, is the Nigerian Ministry of Finance, because it is its duty to coordinate all financial activities, that are carried out within the jurisdiction or scope of the Ministry’s powers, for every other Ministries.
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5. Ministry Of Finance Is Always Aware Of, And Reports Financial Nature, Involving Public Expenditure And Indebtedness
This is another function of the Nigerian Ministry of Finance. The Ministry must make sure that, it is acquainted with any initiative of any financial nature that has to do with public expenditure, as well as, indebtedness. It must also make sure that, it reports same before such is debated by the Congress.
6. Ministry Of Finance Participates In The Negotiations Of International Free Trade
This is another important function of the Nigerian Ministry of Finance. The Ministry has to ensure that, it participates, when there is any negotiations of international free trade, including negotiations of financial agreements. This aspect of the Nigerian Ministry of Finance is quite important and necessary.
7. Ministry Of Finance Exercises Every Power And Every Right That Is Conferred On It
This actually, is the last function of the Nigerian Ministry of Finance, I am explaining in this article. Besides every other functions assigned to the Nigerian Ministry of Finance, the Ministry also has the power to exercise every power and every right, that are conferred on the Nigerian Ministry of Finance in the Nigerian central bank law.
The Nigerian Ministry of Finance is a government Ministry, charged with the responsibility of managing government financial assets and public funds.
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