Commission Urges States To Support FG’s Fiscal Policy Reform
By MAUREEN DICK
The Fiscal Responsibility Commission (FRC) has appealed to state governments across the country to support the efforts of the Federal Government to manage the economy in a prudent, transparent and responsible manner.
The commission, which is a Federal Government agency with the mandate of promoting fiscal responsibility, accountability and prudent management of the nation’s economy, said states could domesticate some of the policies and laws being passed by the federal government like the Fiscal Responsibility Act of 2017.
Executive Chairman, Fiscal Responsibility Commission, Victor Muruako, made the call in Port Harcourt on Monday, at the Financial Accountability Retreat for Sub-Nationals and Civil Societies.
He called on Civil Society Organisations (CSOs) to engage in advocacy for transparency, accountability, and prudent management of resources by the sub-national governments.
In his welcome address at the retreat which has as its theme; Strengthening Financial Accountability at Sub-National Levels, the Executive Chairman insisted that he burden of macroeconomic management cannot be left solely to the Federal Government.
Muruako said: “Sub-national governments must play a proactive role in promoting transparency, accountability and credibility.
“State governments that have not yet domesticated the Fiscal Responsibility Act are encouraged to take steps to do so.”
He added: “To emphasize the importance of sub-national governments adopting best practices in fiscal responsibility, we need only look at the Revenue Allocation Formula.
“For every N100 that enters the federation account, the formula allocates only about half to the Federal Government, with the remaining half going to sub-national governments. This underscores the critical role of sub-national governments in ensuring the success of Nigeria’s macroeconomic management.
“While we acknowledge the progress made by sub-national governments in recent years, there is still room for improvement. The publication of budgets, budget implementation reports, and audited financial statements is a significant step towards transparency. However, we can and must do more.”
He also highlighted the role of civil society organisations in achieving fiscal responsibility saying that CSOs play a vital role in enhancing financial accountability by asking critical questions and promoting transparency.
Muruako stated: “We urge CSOs to engage in advocacy for transparency, accountability, and prudence in a professional manner.
“Section 51 of the Fiscal Responsibility Act empowers every citizen with the legal capacity to enforce the provisions of the Act through the courts. We encourage citizens to utilize this power to hold governments accountable. However, it is important to exercise this power responsibly and based on evidence.
“We also urge state governments to view CSOs as partners in progress and collaborate with them. By working together, we can achieve greater development for our nation.
“Furthermore, state governments that have not yet domesticated the Fiscal Responsibility Act are encouraged to take steps to do so.”
In his his paper; “Strengthening Oversight: The Role of Civil Society Organizations in Promoting Fiscal Responsibility at the Sub-National Level”, Justice Kemakolam Ojiako recommended that to strengthen the role of the CSOs in promoting fiscal responsibility at the sub-national levels, “Governments at the sub-national levels should provide adequate funding and resources to CSOs working on fiscal governance issues; the legal framework should be strengthened to protect the independence and activities of CSO, increased collaboration between CSO, government agencies and other stakeholders, ensuring adequate and prompt public access to financial information and data and investing in capacity building programmes for CSOs to enhance their technical expertise.”
Participants at the retreat included public finance management officials at the sub-national level like State Commissioners for Finance, the accountant generals of the states, the auditor-generals, civil society organisations and other key players.