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Questions and Answers
What is the purpose of the Petroleum Technology Development Fund (PTDF)?
What is the purpose of the Petroleum Technology Development Fund (PTDF)?
What are the revenues sources for the PTDF?
What are the revenues sources for the PTDF?
What is the function of a Counterpart Fund?
What is the function of a Counterpart Fund?
Which legislation led to the establishment of the Petroleum Technology Development Fund (PTDF)?
Which legislation led to the establishment of the Petroleum Technology Development Fund (PTDF)?
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What types of donations can make up a Counterpart Fund?
What types of donations can make up a Counterpart Fund?
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In which sector are the projects supported by a Counterpart Fund typically implemented?
In which sector are the projects supported by a Counterpart Fund typically implemented?
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What is the primary focus of the Commitment/Obligation or Encumbrance Basis of accounting?
What is the primary focus of the Commitment/Obligation or Encumbrance Basis of accounting?
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Why is the Commitment/Obligation or Encumbrance Basis important in Vote Accounting?
Why is the Commitment/Obligation or Encumbrance Basis important in Vote Accounting?
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Which types of documents are used to evidence anticipated expenditures in the Commitment/Obligation or Encumbrance Basis?
Which types of documents are used to evidence anticipated expenditures in the Commitment/Obligation or Encumbrance Basis?
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In which sector is the Provision of free or affordable welfare services a primary objective?
In which sector is the Provision of free or affordable welfare services a primary objective?
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What is the primary income source for the Public Sector according to the text?
What is the primary income source for the Public Sector according to the text?
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Which act emphasizes the importance of fiscal responsibility in government spending?
Which act emphasizes the importance of fiscal responsibility in government spending?
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What is the purpose of the Nigeria Infrastructure Fund (NIF)?
What is the purpose of the Nigeria Infrastructure Fund (NIF)?
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Which entity defined Sovereign Wealth Funds (SWF) as special purpose investment funds or arrangements?
Which entity defined Sovereign Wealth Funds (SWF) as special purpose investment funds or arrangements?
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What is the purpose of the Future Generation Fund (FGF)?
What is the purpose of the Future Generation Fund (FGF)?
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What does the Sovereign Wealth Fund (SWF) benefit according to the text?
What does the Sovereign Wealth Fund (SWF) benefit according to the text?
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Which investment areas are included in the Nigeria Infrastructure Fund (NIF)?
Which investment areas are included in the Nigeria Infrastructure Fund (NIF)?
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Study Notes
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.
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Description
Learn about the establishment and purpose of the Petroleum Technology Development Fund (PTDF), which was created to train Nigerians as graduates, professionals, technicians, craftsmen, and more. Explore how the fund serves both the principal and interest payments for training purposes.
