Why NASS should amend the Fiscal Responsibility Act
As the National Assembly resumed from its mid-year recess one of the most pressing issues Nigerians expect to see on the table for the next legislative session is the amendment of the Fiscal Responsibility Act, 2007. This should be paramount and I can dare say urgent, priority more especially at the time when the country […]
As the National Assembly resumed from its mid-year recess one of the most pressing issues Nigerians expect to see on the table for the next legislative session is the amendment of the Fiscal Responsibility Act, 2007. This should be paramount and I can dare say urgent, priority more especially at the time when the country is smarting from the effects of recession and the aftermath of the economic downturn brought about by the COVID-19 pandemic.
The Fiscal Responsibility Act came into being on July 30, 2007, as part of the government’s effort to address the problems of corruption and bad governance in the country. It paved the way for the establishment of the Fiscal Responsibility Commission (FRC) – to enforce the provisions contained in the Act. In its over a decade of existence, the Commission has fared well with remarkable efforts at checkmating corruption and blocking leakages in the government’s financial management despite low funding, among other constraints.
The Act is meant to put a stop to the culture of treasury looting and fine-tune the economy through fostering adherence to a robust fiscal framework that regulates fiscal conduct, prescribes guidelines for the management of state revenues, imposes limitations on government spending and prohibits certain fiscal activities such as some kinds of debt securities and irresponsible borrowing by various tiers of government.
But, the Act as it is now, has limitations that negate or weaken the Commission’s ability to perform in accordance with the current realities. Therefore, the ongoing amendment process by the National Assembly – currently in its final stages at the Senate – is a positive development for the entire country, as it would strengthen the Commission by giving it more powers to function.
The proposed Fiscal Responsibility Act (Repeal and Enactment) Bill contains all the provisions necessary to reinforce the Commission in its resolve to enthrone transparency and accountability in the management of government finances, which would pave the way for the attainment of a prudent and prosperous national economy for the good of our teeming citizens. The amendment bill provides clear-cut solutions to the current helpless status of the Commission by handing it the tools and ability with which to act decisively in checkmating corruption in government agencies.
For instance, the amendment bill, empowers Commission, inter alia, to “Access to inspect, search and seize documents and records deemed necessary for the performance of the function of the Commission; and as required as evidence pursuant to the ex-parte orders of a competent court,” and “review or verify the financial records of any government agency, corporation, ministry, department, extra-ministerial department, etc.’
It also expanded the functions of the Commission. But, above, all the amendment bill seeks to make the Commission independent in the performance of its functions.
The amendment of the FRA has been overdue. The urgency of the amendment is more pronounced by the prevailing reality in the country vis-à-vis the tense state of the economy. And the fact that Nigeria has experienced two consecutive recessions within the space of four years, is enough reason for the National Assembly to speed up the amendment process so as to enable the Commission apply appropriate intervention measures that would help secure the nation’s economy through enforcement of fiscal discipline and prudence in government affairs.
Even from the recent happenings at the National Assembly where the Commission has been working with both the Senate and House committees to expose infractions in several government agencies, especially in the areas of remittance, it is glaringly clear that the work of the Fiscal Responsibility Commission is very vital and critical in today’s Nigeria.
The bill is now heading for the third reading as the Senate Committee on Finance is expected to present its public hearing report on the floor of the Senate any time soon. Therefore, all eyes would be on the National Assembly as Nigerians welcome our representatives back to their legislative duties with renewed expectations. The Fiscal Responsibility Act amendment Bill should be passed.
Hamisu Gumel [email protected]