FINANCIAL YEAR ACT

FINANCIAL YEAR ACT

What Is This Policy?

An Act defining the official financial year for the Federal Government of Nigeria as the period from 1 January to 31 December of each year.

Who Does It Target?

Federal Government agencies managing public finances Ministry of Finance and Budget Office National Assembly for appropriations All entities with fiscal year obligations to the government

What Does It Aim to Achieve?

Establish a uniform financial year for all federal government accounting, budgeting, and reporting purposes, ensuring consistency across government.

Key Features

Financial Year Definition: Defines the government financial year as 1 January to 31 December. Budget Cycle: Budget preparation and appropriation aligned to the January-December financial year. Accounting Period: All government financial statements prepared on a January-December basis. Statutory Consistency: Ensures uniformity across all federal agencies in financial reporting periods.

Current Status

Rollout Stage: Active Coverage: All Federal Government financial management Beneficiaries: Orderly government financial management Funding: Not applicable

How to Access

Not applicable — defines a government standard Application method: Not applicable.

Important Terms

The financial year runs from 1 January to 31 December Budget appropriation must be enacted before the start of each financial year Supplementary appropriations may be made during the year

Official Resources

Website: https://www.finance.gov.ng Contact: Federal Ministry of Finance

Legal Framework

Enacted under the legislative powers of the National Assembly as the Financial Year Act (Cap F31 LFN 2004). Operates alongside the Finance (Control and Management) Act (Cap F26 LFN 2004), the Fiscal Responsibility Act 2007, and the annual Appropriation Act. The financial year definition aligns with the Gregorian calendar year standard adopted by most UN member states and is consistent with the IMF Government Finance Statistics Manual.