11.2 CONSOLIDATED REVENUE FUND OR ACCOUNT OF THE FEDERAL GOVERNMENT

3.6.9 CONSOLIDATED REVENUE FUND

It is a general fund of government into which all receipts are paid into and out of which all withdrawals, except those that are charged on other funds, are made from in accordance with the Constitution.

Because the Fund is used to serve both principal and interest payments, transfers into it are limited to funds from the Consolidated Fund required to service principal and interest payments.

An alternative to this is the establishment of a sinking fund into which an annual payment is made for the redemption of a specific loan, with the annual payment

RELATED TOPIC: PUBLIC SECTOR AUDITING IN NIGERIA PDF

calculated in such a way that the annual payment (the principal) plus the interest earned on the loan is sufficient to liquidate the loan in the future.

According to Section 80(1) of the 1999 Constitution, “all revenues or other moneys raised or received by the Federation (other than revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other Public Fund established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.”

Additionally, the Consolidated Revenue Fund (CRF) is known as the Federal Government Account.

The Constitution establishes the CRF, which is always represented by monetary assets.

CONSOLIDATED REVENUE ACCOUNT

The consolidated revenue account is the account into which the council transfers all net surpluses and deficits from all accounts, with the exception of all funds as defined in subsection (6) of section two hundred and eighty-six, the housing account referred to in section three hundred and one, the traditional beer account, the services levy account, the parking account, and the capital account of the estates account;

source

11.2.1 SOURCES OF REVENUE INTO THE FEDERAL GOVERNMENT’S CONSOLIDATED REVENUE FUND

1. Federal Government Account or Consolidated Revenue Fund: – This Account receives allocations from the Federal Government.

READ ALSO:  PUBLIC SECTOR ACCOUNTING AND FINANCE IN NIGERIA

(a) Federation account of 48.5%, as analyzed in the previous page’s table.

(a) Additional revenue items that directly benefit the Federal Government include the following:

2. Taxes levied directly: –

Pay-As-You-Earn (PAYE) is deducted from the salary of the following individuals: –

1. Armed Forces.
2. Armed Forces.
3. Police Force of Nigeria.
4. Officers of the Ministry of External Affairs.
5. Abuja residents of the Federal Capital Territory.
6. High Commissions and Embassies of States.

(c) License and Internal Revenue:

– These are revenue items earned from the licensing of intellectual property.

The items are as follows:

1. Licence fees for the sale of firearms.
2. Fees for Goldsmith Licences.
3. Licensing fees for gold traders.
4. Registration fees for businesses.
5. Licence fees for radio and television.
6. Fees for obtaining a citizenship license.
7. Fees for residence permits.

(d) Exploration Fees for mining.

1. Royalty plated with gold.
2. On tin and iron ore, royalty.
3. Bitumen and coal royalties
4. On limestone and other mineral resources, a royalty is charged.
5. E) fees
6. Court fees.
7. Fees for probate.
8. Medical fees
9. Court-imposed fines.

(f) Profitability and Sales

1. Interest and dividends received by the federal government on its investments.
2. Sales of property owned by the federal government, such as land, vehicles, and buildings.
3. Publication and stamp sales.
4. Fee for postal and money orders.

(h) Federal Government Property Rental

1. Rental of government-owned buildings and parks.
2. government of public land and buildings The national stadium, Tafawa Balewa Square, the Trade Fair Complex, and the National Theatre are among examples.
3. Rental of government-owned property such as machinery and trucks, among others.

(h) Interest and Repayments (General): These are revenue items generated by interest and repayments on loans made to employees in the form of advances, as well as to companies and government-owned facilities.

(I) Interest and Repayments (State Governments): – These are revenue streams generated by interest and repayments on loans extended to Federation State Governments.

READ ALSO: CONTITUTIONAL, LEGAL AND REGULATORY FRAMEWORK OF PUBLIC SECTOR ACCOUNTING IN NIGERIA

(j) Reimbursements: These are reimbursements provided to the Federal Government by States, Local Governments, and parastatals for expenses incurred on their behalf by the Federal Government.

(k) Armed Forces Property Sales: These are revenue items earned from Armed Forces property sales. They include the following: –

1. Vehicles and buildings for the Armed Forces are rented.
2. Earnings from Armed Forces bands.
3. Payment of school fees to Armed Forces institutions such as the Nigeria Defence Academy, the Nigeria Navy Secondary Schools, the Nigeria Airforce Secondary Schools, and Command Day Secondary Schools.

(l) Other revenue items:

These include the following:

1. Repatriation of looted funds
2. Recoverable from armed robbers, drug pushers, and con artists, among others.
3. Reimbursement of overpayments.

TO SUM UP

Section 80(1) of the 1999 Constitution sets up the Consolidated Revenue Fund (CRF).

The CRF is used for principal and interest payments.

Additional revenue items that directly benefit the Federal Government include the following:

Licensing fees for the sale of intellectual property, as well as ExplorationFees for mining.

Interest and Repayments (General): These are revenue items generated by interest and repayments on loans made to employees in the form of advances. Rental of government-owned buildings and parks: The national stadium, Tafawa Balewa Square, and the Trade Fair Complex are among examples.

Note:

The public sector accounting post or guides or articles are not limited to these 10 countries alone:

1. Ghana
2. Nigeria
3. United States
4. Uganda
5. India
6. Kenya
7. Philippines
8. Malaysia
9. Tanzania
10. South Africa

But instead targeted all the countries in the world since public sector accounting is being practice in every country in the world, so wherever country you are in the world can read public sector guides here since public sector accounting applications are similar.