The Fiscal Responsibility Commission (FRC) will provide technical support to states and local governments to help them adopt fiscal responsibility rules and enact fiscal responsibility laws/bylaws.

The Executive Chairman of the commission, Victor Muruako, who disclosed this in Abuja on Tuesday at a policy dialogue organised by Agora Policy, said the Supreme Court judgement on local government autonomy was not merely a legal milestone, but a clarion call to restore dignity, functionality, and independence to the tier of government closest to the people.

However, he observed that autonomy comes with great responsibility, adding that the FRC is poised to support local government councils with the appropriate fiscal responsibility framework for discharging the responsibilities.

He explained: “The Fiscal Responsibility Act (FRA) mandates the FRC to provide encouragement and technical support to states and local governments towards their adopting fiscal responsibility rules and enacting fiscal responsibility laws/bylaws with semblance to the FRA. Accordingly, I passionately urge all local governments in Nigeria to preface the implementation of their autonomy with clear commitments to fiscal transparency, accountability, and prudence.”

He stated that with fiscal and financial autonomy, local governments now have the opportunity to approach banks and other financial institutions for borrowing to fund development projects.

He, however, advises LGAs to exercise caution and adhere strictly to the terms, conditions, and limitations outlined in the FRA to ensure sustainable fiscal management.

He argued that strengthening fiscal governance at the lowest level of government is critical to transforming lives and fostering human development across Nigeria.

According to Muruako, the goal of local government autonomy is not autonomy for the sake of it, but autonomy that delivers tangible results for the citizens.

In her goodwill remarks, Deborah Isser, Lead Governance Specialist at the World Bank, stated that, in principle, local government, as the authority closest to the people, is best positioned to make decisions that address local preferences and needs.

She explained that federal systems are often sites of contestation over power and resources, which often leads to mismatches between the assignment of responsibilities, resources, and capacities.

“This is not only in Nigeria – many countries have followed trajectories of decentralisation and recentralisation in ways that distort the ability of the lowest tier of government to function,” she stated.

Speaking on the theme, ‘Second Policy Dialogue on Local Governance Reforms: A Year After the Supreme Court’s Ruling’, the Chair, Agora Policy, Ojobo Atuluku said the supreme court judgment affirming the constitutional autonomy of local governments was a constitutional reaffirmation of the principle that local governance must be closer to the people, more transparent, and more accountable.

He asked rhetorically: “The questions remain – Have we seen meaningful devolution of authority and resources? Have local governments become more responsive, more capable, or more participatory? Has the judgment shifted the balance of power in a way that empowers citizens and strengthens democratic institutions at the grassroots?”

He argued that if Nigerians are truly committed to restoring the promise of local democracy, they must pursue comprehensive reform of the local governance system, going beyond legal declarations to dismantle entrenched patronage, overhaul compromised electoral structures, and rebuild local councils as transparent, accountable, and citizen-driven institutions.

He argued that Agora Policy recognises that policy change does not occur solely through court rulings, but also through political will, institutional capacity, and civic pressure.