Friday, 31st March 2023
Breaking News:

‘Governors kicking against establishment of FRC laws are bad leaders’

By Matthew Ogune, Abuja
27 July 2021   |   3:01 am
The chairman, Fiscal Responsibility Commission (FRC), Victor Muruako, has described state governors that are least receptive to the ideal of a functional fiscal responsibility law

FRC, Victor Chinemerem Muruako

The chairman, Fiscal Responsibility Commission (FRC), Victor Muruako, has described state governors that are least receptive to the idea of a functional fiscal responsibility law as lacking self-confidence and good leadership ability.

Murako, who made this declaration, yesterday, in Abuja during a five-day induction programme for Benue State FRC members, said the commission has taken up the matter with governors, requesting them to strengthen the commission in their various states.

Disclosing that the commission has begun a programme to deepen its engagement with governments and civil society organisations that operate at sub-national levels, he called on state legislatures and governors that have not concluded the process of enacting fiscal responsibility laws and establishment of the commission to take immediate steps to that effect.

According to the chairman, the FRC is committed to partnering with states and local governments towards strengthening the fiscal responsibility ecosystem in Nigeria.

He said macroeconomic management must be seen and acknowledged as collective fiscal activities of states and local governments.

He said: “A nation has one macroeconomy and its components, such as states and local governments, in the case of Nigeria, are indispensable in achieving positive outcomes in key indices of economic development, including macroeconomic stability, debt sustainability, accountability, transparency, and sustainability among others.

“In the case of Nigeria where the revenue allocation formula places 48 per cent of the federal revenue with the Federal Government while 52 per cent goes to states and local governments, it will be near futile to faithfully implement the fiscal responsibility Act at the federal level while states wallow in unchecked fiscal recklessness.”

He added: “When you add the Internally Generated Revenues (IGRs) of states and local governments to their allocations from the federation account, their relevance becomes more pronounced. Sub-national governments cannot be overlooked or neglected in their desire to harness the benefits of properly managed public revenue, spending and debt.”

Also speaking, acting chairman, Benue State FRC, Igyuse Yahuza, expressed delight that the collaboration of the FRC and other anti-graft agencies has ensured fiscal accountability, transparency and has also stamped out corruption for the efficient management of the country’s resources.