The Ministry of Finance has formulated a policy to issue credit cards to state institutions.
The finance ministry formulated the policy to allow state institutions to make financial transactions in situations where they are unable to use internet banking. Offices are required to submit an application to the finance ministry for a corporate credit card along with information on the financial institution that would issue the card and a copy of the identification card of the nominee.
However, local councils are required to obtain credit cards through the Local Government Authority (LGA), which will submit the application to the financial institution after receiving approval from the finance minister. The policy dictates that expenses made using the credit card should be allocated in the budget and state institutions are required to submit details of their expenses to the finance ministry. The credit card limit will be set by the ministry and state institutions are required to submit their intention to make transactions that are over the limit, via a letter to the ministry.
Furthermore, senior officials of state institutions are required to explain any anomalous transactions to the ministry. State institutions will be penalised over any transaction that violated the relevant rules and regulations.