NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JULY 2018 EXAMINATION

COURSE CODE:      BFN411                                                          CREDIT UNIT:   3       

OURSE TITLE:     PUBLIC FINANCIAL MANAGEMENT

TIME ALLOWED:   3 HOURS     

Instructions:

1. Attempt question number one (1) and any other three (3).

Question 1

Table 1: VAT Revenue Allocation Formula (%)

 Assume Table 1 is hypothetically representing Federal Government of Nigeria formula for sharing VAT revenue among the three tiers of government; and the following are revenues for the various years: 1994 N545,555,240; 1995 N650,252,400; 1996 N674,980,230; 1997 N875,109,790; 1998 N980,567,200; and 1999 N1,234,456,900. Calculate revenue accruable to each tier of government for the periods under consideration.                                      25 marks

Question 2

1. Discuss any five (5) functions of African Development Bank as expressed in the establishing statute.                         7^1/2 marks 
2. What are the main features of the International Financial Corporation’s investment policy? (Any 5 will suffice).        7^1/2 marks      

Question 3

1. Discuss briefly the project life cycle.         10 marks
2. The first stage of Project Analysis involves dividing the project into a number of different activities and events. With an example of a simple project and a network diagram

1. Define an activity
2. What is an event?
3. Define a network

5 marks

Question 4

1. What is fiscal policy?        2 marks         
2. Define any five (5) underlying fiscal policy objectives of government. 10 marks
3. Mention any six (6) monetary policy instruments and briefly discuss any two.             3 marks

Question 5

1. In each respect list any five (5) sources of revenue accruable to the federal, state and local governments.                                                                                     7^1/2 marks

Table 2: Summary of Federal Government Finances (N Million)               

2. From Table 2 above calculate the approximate ratio of oil revenue to non-oil revenue of the federally collected revenue for each year.    2^1/2 marks
3. Calculate the percentage (to 2 decimal places) contribution of each source of revenue to total revenue for the five years.          5 marks

Question 6

Discuss briefly any five (5) public financial control authorities in Nigeria. 15 marks