FG directs FRC to improve technical support for LGAs

The Federal Government, on Thursday, directed the Fiscal Responsibility Commission (FRC) to increase its technical support to local government councils, aiming to enhance fiscal transparency, accountability, and effective resource management.

It also said that it is part of efforts to strengthen fiscal discipline and ensure good governance at the local level.

The Secretary to the Government of the Federation (SGF), Senator Sen. George Akume, disclosed this in Abuja, during a two-day stakeholders National Summit of Fiscal Responsibility Agencies.

Akume, who was represented by the retired Permanent Secretary, General Services Office, Sir. Olusegun Adekunle said that support from FRC will improve service delivery, reduce corruption, and promote economic development in local communities.

He said: “The door-keeping responsibilities conferred on the Fiscal Responsibility Commission to monitor compliance with provisions of the Act, and issue associated Proof of Compliance consistent with Section 45 of the Act should be adhered to, for purposes of fiscal cohesion.

“I would like to emphasize the importance of respecting the Supreme Court’s ruling on the financial autonomy of local governments. This decision is aimed at bringing governance closer to the people.

“In the light of this commendable development, I hereby direct the Fiscal Responsibility Commission to increase its technical support to local government councils, towards their wholesale adoption of fiscal responsibility conduct, policies, and bylaws as practiced at the federal level.”

In his address, the Cross River State Commissioner for Finance, Mr Michael Odere, reaffirmed its commitment to financial prudence and transparency, prioritizing responsible spending and sustainability.

He said: “As a prudent and transparent state, we prioritize responsible financial management. Our budgetary process is open and compliant with the law. Although we receive moderate allocations, we remain committed to financial discipline and accountability.”

In his remarks, the Executive Chairman of FRC, Victor Muruako, emphasized the Commission’s key mandate to encourage states to enact their own fiscal responsibility laws and establish agencies to enforce them.

He stressed the need for state governments to adhere to these provisions to ensure alignment and prevent fiscal mismanagement.

Muruako said: “It is important to note that while subnational governments have powers to appropriate and manage their expenditure under Nigeria’s fiscal federalism, their powers to superintend over laws related to public debt are limited to what is allowed them by the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“For emphasis, Sections 7 and 50 of Part 1 of the 2nd Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended) place public debt in the Exclusive Legislative List. Laws and controls over items in the exclusive list are reserved solely for the Federal Government, to the exclusion of other tiers of government in the Federation.

“In matters of debt, indebtedness and borrowing by governments and public sector entities, a federal legislation, the Fiscal Responsibility Act contains copious provisions covering the setting of debt limits, the conditions for borrowing, lending by financial institutions to governments and their agencies.

“State governments are therefore enjoined to align their borrowing to the conditions and procedure so elaborately set out in the FRA 2007. We are worried that we do not see enough of this alignment.”