The Fiscal Responsibility Commission (FRC) is intensifying its efforts to amend the Fiscal Responsibility Act (FRA) 2007, seeking support from the National Assembly and the Federal Ministry of Justice to address gaps that have weakened enforcement of the law.
Acting Chairman Highlights Enforcement Gaps
Acting Chairman of the commission, Charles Abana, disclosed this on Tuesday during a courtesy visit to the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, in Abuja. Abana stated that while the FRA 2007 prescribes offences related to fiscal misconduct, many of these provisions lack corresponding sanctions, limiting the commission's ability to enforce compliance effectively.
According to him, the commission is working with the Federal Ministry of Justice to address these deficiencies and strengthen the implementation of the Act. He added that consultations are ongoing with the National Assembly regarding the codification and gazetting of fiscal rules to give them stronger legal backing.
Background of the Fiscal Responsibility Act
The FRA 2007 was enacted to promote prudent management of public resources, ensure macroeconomic stability, and improve accountability in public spending. However, the law has faced criticism over weak enforcement mechanisms.
Strategic Plans and Operational Challenges
Abana also briefed the permanent secretary on the outcome of a recent management retreat, where the commission developed a strategic work plan aimed at aligning its operations with global best practices. He disclosed that the commission is finalising plans for a workshop on Fiscal Responsibility Index studies for ministries, departments, and agencies (MDAs).
The acting chairman highlighted operational challenges confronting the commission, including a shortage of skilled personnel caused by the exit of staff to better-paying government agencies. He warned that this development is affecting the commission's capacity to discharge its mandate and called for urgent intervention in recruitment, training, and staff development. He also raised concerns over inadequate office accommodation, describing the current working conditions as unsuitable for a regulatory institution. He noted that some deputy directors currently share office space with junior officers.
Ministry of Finance Pledges Support
Responding, Omachi commended Abana's leadership and acknowledged his longstanding relationship with the commission as one of its pioneer members. He said the FRA 2007 had contributed significantly to strengthening fiscal discipline and public resource management in Nigeria. He added that the Ministry of Finance would support efforts to amend the legislation, particularly during stakeholder engagements and public hearings.
On the issue of office accommodation, Omachi advised the commission to formally approach the Office of the Secretary to the Government of the Federation (SGF), which he described as the commission's supervisory authority and better positioned to address the request.
