The Fiscal Responsibility Commission (FRC) has unveiled a new Fiscal Responsibility Code of Conduct, a framework designed to enhance fiscal discipline, transparency, and accountability in Nigeria’s public financial system.

Executive Chairman of the Commission, Victor Muruako, stated this during a validation meeting weekend in Abuja.

He described the code as an “indispensable toolkit” for enforcing the Fiscal Responsibility Act (FRA) of 2007.

The event marked a significant step in the Commission’s efforts to close existing enforcement gaps.

Commending key partners, including the European Union, the Rule of Law and Anti-Corruption (ROLAC) Programme, International IDEA, and the Centre for Social Justice (CSJ), for their support, Muruako gave a special tribute to Eze Onyekpere, CSJ’s Lead Director, for his “longstanding partnership and zealous commitment to expanding the frontiers of fiscal responsibility in Nigeria.”

Muruako highlighted the challenges in implementing the FRA, noting that while the Act has four core mandates, it has been hindered by weak provisions for sanctioning violators.

He explained that a number of inadequate and “inchoately created ‘offences'” in the Act, with no prescribed sanctions or punishments, have prolonged a regime of impunity despite “our concerted efforts to seek legislative remedies since 2012.”

The new Code of Conduct, according to him, aims to resolve these issues by clearly defining acceptable and prohibited behaviours for public finance officers, outlining sanctions for infractions, and aligning with other relevant laws to ensure enforcement.

The code’s objectives include reducing risks in public financial management, such as budget fraud and corruption, promoting transparency and accountability in fiscal decisions and contract execution, providing a framework for ethical decision-making, and ensuring fiscal discipline by limiting borrowing to capital projects and human development.

Muruako stressed the FRC’s role as Nigeria’s fiscal council, a function recognised by the World Bank, IMF, and OECD.

He said the council’s duties include independently assessing government fiscal policies and performance against macroeconomic objectives “without partisan influence.”

The Commission has also developed other instruments, such as a Standard Template for Calculating Operating Surplus and Internally Generated Revenue, and guidelines for banks to ensure compliance before lending to government entities, as mandated by the FRA.

The FRC has pledged to continue its collaboration with civil society and development partners to ensure the code’s effective implementation. Muruako expressed optimism that the ideas from the meeting would “add positive value to the final document” and help establish fiscal responsibility at all government levels.

“We must instil a culture of fiscal discipline that safeguards public resources, promotes transparency, and secures economic stability for present and future generations,” he stated.

Speaking on the importance of the section of the FRC Act, especially with regard to enforcement, CSJ’s Lead Director, Onyekpere, said every Nigerian has a legal capacity to invoke the provisions of the Act.

He noted that “The idea behind this code of conduct is to produce a guide for Nigeria’s fiscal operations that will direct the operators of the fiscal space to align themselves to the provisions of the Act and international best practices.”