Increase technical support to LGCs, SGF urges FRC

The Secretary to the Government of the Federation (SGF), Senator George Akume, has urged the Fiscal Responsibility Commission (FRC) to increase its technical support  to local government councils.

He said this at the National Summit of Fiscal Responsibility Agencies, organised by FRC in collaboration with Rule of Law and Anti-Corruption Programme, Phase II (RoLACII), among others in Abuja, yesterday.

He was represented by Dr. Olusegun Adekunle from the OSGF at the summit themed, “Building a resilient fiscal framework, a collaborative approach.”

“I here by  direct the FRC to increase its technical support  to LGCs towards their wholesale adoption of fiscal responsibility conduct, policies and bye laws as practiced at the federal level.”

Akume said that the commission, which was established by the FRC Act of 2007, played a crucial role in monitoring and enforcing the provisions of the legislation.

He said that the Act’s primary objective was to ensure the prudent management of the nation’s resources, promote transparency and accountability, and uphold fiscal discipline.

“One of the commission’s key mandates is to encourage states across the federation to enact their own fiscal responsibility laws and establish dedicated agencies to enforce them.

“ While progress has been made, there is still room for improvement in terms of implementation and uniformity.”

The SGF said the summit aimed to strengthen fiscal responsibility policies and practices nationwide by bringing together representatives from both federal and state-level agencies.

“We can share best practices, address common challenges, and chart a course toward a more transparent, accountable, and corruption-free public financial management system.

“The fiscal conduct of subnational governments is paramount to our nation’s macroeconomic stability,” he said.

The Executive Chairman of FRC, Mr. Victor Muruako, said that the objective of the summit was to assess the progress made in fiscal responsibility management across all levels of government.

Muruako said that adopting a harmonious approach was vital for the economic well-being of the nation.

He said that it was crucial to foster improved fiscal coordination among governments in the federation.

“It is crucial to enhance collaboration between national and subnational institutions responsible for fiscal responsibility management, thereby ensuring that the efforts are synergistic and impactful,” he said.

According to him, the enactment of the Fiscal Responsibility Act in 2007 has been a cornerstone in our journey towards a fiscally responsible and sustainable nation.

“This landmark legislation has provided a legal framework for ensuring that government revenues and expenditures are managed in a responsible and efficient manner, for the benefit of all citizens.

“Improved fiscal discipline, enhanced transparency, reduced fiscal deficits and improved public service delivery.

“The Act had improved coordination among different levels of government, fostering a harmonious and efficient fiscal system.

“The recent judgement of the Supreme Court extending fiscal autonomy to LGCs has intensified the need for enhanced fiscal coordination across tiers of government. We are poised to meet that need.”

He said that there were some challenges hindering fiscal responsibility

According to him, the implementation of fiscal responsibility principles have been challenged by factors such as professional carelessness, political pressure, corruption, and inadequate capacity.

He said the challenge of institutional capacity in the course of implementing the Fiscal Responsibility Act was also an issue.

“It is clear to the commission and stakeholders that the Act needs to be strengthened by incorporating clearer definitions of offenses and associated sanctions.

“The efforts to amend the Act have been going on in the National Assembly. In the ninth assembly, the amendment got up to public hearing before the end of the assembly.

“In this 10th assembly, we are very hopeful that the amendment will be concluded and the fiscal responsibility space will be strengthened,” he said.

He said that poor fiscal coordination regarding subnational debts had been a key challenge, particularly in the area of debt management and procurement practices.

“The implications of subnational debts on Nigeria’s national debt profile are profound, necessitating a concerted approach to debt management.

“The challenges with debt management and procurement practices is that the subnational governments have powers to appropriate and manage their expenditure under Nigeria’s fiscal federalism.

“But their powers to superintend over laws related to public debt are limited to what is allowed by the 1999 constitution,” he said.

Dr. Emmanuel Uche, a representative of RoLAC II, said the programme would strengthen the foundation of democratic governance related to transparency and accountability of government systems and structures.

Uche said that public finances management fell under the responsibility of FRC, which is a key pillar in democratic governance.

“Without proper dividend to the people democracy will be under threat.

“We will strengthen the capacity of FRC to coordinate other agencies across the state who are supposed to join and implement the fiscal responsibility in the country,” he said