How lack of accountability stifles fiscal democracy processes – FRC

The Fiscal Responsibility Commission (FRC), on Thursday, raised concerns on how lack of accountability has stifled efforts to democratise fiscal processes in Nigeria.

FRC also advocated for a common code of prudence, transparency, and accountability to address these challenges effectively.

The Executive Chairman of FRC, Victor Muruako, disclosed this in Abuja during a two-day sensitization retreat held in Abuja for stakeholders from the North-Central region, he emphasised the critical role of transparency and accountability in fostering sustainable development at sub-national levels.

The retreat, themed “The Impact of Transparency and Accountability on Sub-National Development in North Central Nigeria,” brought together policymakers, government officials, and civil society leaders.

He noted that the retreat will provide an opportunity for stakeholders to dialogue on best practices for enhancing financial governance, addressing challenges, and ensuring that public funds are managed responsibly to support long-term growth in the region.

Muruako said: “Challenges such as corruption, inefficiency, and lack of accountability continue to hinder our progress in the area of democratizing our fiscal processes. To address these challenges, it is imperative that we prioritize transparency and accountability in public finance management.”

He emphasized the importance of subnational governments in Nigeria’s fiscal framework, noting that states receive approximately half of the nation’s shareable revenue and have constitutional freedom to manage these resources independently, including their Internally Generated Revenue (IGR).

In his remarks, Clerk of the Committee on Finance in the House of Representatives, Bar. Oscar Okoro said that Fiscal responsibility has the potential to drive the national economy.

“There’s a need for increased sensitization to help states recognize the benefits of fiscal responsibility. Fiscal responsibility entails transparency, accountability, and prudent resource management.

“In our federal system, it’s challenging for the federal government to enforce laws on states. However, laws like the Public Procurement Act and fiscal responsibility legislation are crucial for economic development.

“Fiscal responsibility has the potential to drive the national economy, which encompasses local, state, and federal economies. For holistic growth, all three tiers must prioritize prudence. Beyond awareness and sensitization, if states choose not to adopt fiscal responsibility, it will hinder overall progress.”