Petroleum Technology Development Fund (PTDF) Overview

Fund Types

• The Fund is used to service both principal and interest payments, and transfers into it are solely from the Consolidated Fund for principal and interest payments.

Petroleum Technology Development Fund (PTDF)

• Established in 1973, following the cancellation of the Gulf Oil Training Fund Act of 1964.
• Purpose: to train Nigerians to qualify as graduates, professionals, technicians, craftsmen, etc. in the Petroleum and Gas Industry in Nigeria and abroad.
• Revenues: signature bonuses for oil blocs awarded, bid round, and Federal Government sales of Seismic data.

Counterpart Fund

• Established by the Government to support projects jointly funded by Nigeria and foreign countries or donors.
• Foreign donations can be made in cash or goods/services.
• Government makes a contribution in addition to foreign contributions/donations towards project completion.
• Used in projects such as oil and gas, roads and bridges, railways, and hospitals.

Commitment/Obligation or Encumbrance Basis

• Records anticipated expenditure evidence by a contract agreement, local purchase order, or management determination.
• Recognizes expenditure that Government has committed to, including all cash paid and anticipated expenditure.
• Important in Vote Accounting for expenditure control and preventing overspending.

Comparison Between Public & Private Sector Accounting

• Objectives: private sector maximizes profit, public sector provides free or affordable welfare services.
• Accounting basis: private sector uses accrual basis, public sector uses cash basis.
• Income: private sector from sales of goods and services, public sector from taxes, fines, fees, and customs duties.
• Accountability: private sector to shareholders, public sector to citizens.

Future Generation Fund (FGF)

• Created for investment in a diversified portfolio to provide future generations of Nigerians a solid savings base.
• Purpose: to provide for when hydrocarbon reserves in Nigeria are exhausted.

Nigeria Infrastructure Fund (NIF)

• Invests in infrastructure projects in Nigeria that meet targeted returns and contribute to economic development.
• Investment areas: transportation, energy and power, water resources, agriculture, etc.

Sovereign Wealth Fund (SWF)

• Defined by the International Working Group of Sovereign Wealth Funds (IWG) as special purpose investment funds or arrangements owned by general governments.
• Created for the benefit of the Federal Republic of Nigeria with an initial funding of US$1 billion.