“We dare say that if this Act had been amended in good time, Nigeria might have been spared the current macroeconomic challenges it found itself grappling with.”
The Fiscal Responsibility Commission (FRC) has restated the need for the amendment of the Fiscal Responsibility Act to eliminate the inbuilt limitations within the Act.
Executive Chairman, FRC, Victor Muruako, Esq. Made this call on Monday in Abuja at a capacity-building workshop designed for members of the National Assembly that aims to address aspects of financial prudence, debt management, and fiscal reforms essential to alleviating current economic hardships.
OrderPaper Advocacy Initiative, Nigeria’s foremost independent parliamentary monitoring organisation and policy think tank that bridges the gap between people and parliament, hosted the capacity-strengthening workshop on fiscal responsibility and public finance management.
Muruako pointed out that while the enactment of the Fiscal Responsibility Act in 2007 was initially celebrated for its focus on prudent resource management and macroeconomic stability, its flaws have become apparent over time.
“As stewards of our nation’s well-being, it is incumbent upon us to fortify our knowledge and expertise in navigating the complexities of fiscal governance with the enactment of the Fiscal Responsibility Act in 2007 and the subsequent inauguration of the Fiscal Responsibility Commission with a mandate to enforce the provision of the act.
“It was with much praise and excitement that Nigerians welcomed the only law to ever come out of parliament with the title ‘An Act to provide for prudent management of the Nation’s Resources, ensures long-term Macro-Economic stability of the National economy’, however, it didn’t take long for it to be observed that the so-much-awaited law was born with congenital weaknesses,” he said.
Acknowledging the interest and commitment of the 10th Assembly’s leadership to amend the Act, Muruako challenged them to bear the historical responsibility of crafting a superior framework for public finance management through the amendment process.
“We are glad to note that the leadership of the 10th Assembly, at different times, has publicly expressed interest in and commitment to the amendment of the Fiscal Responsibility Act. History has simply reposed on you, Sirs, this onerous responsibility of crafting a superior framework for public finance management through amendment,” he added.
On his part, Professor Uche Uwaleke, Director, Institute of Capital Market Studies, Nasarawa State University, in his presentation highlighted the challenges of fiscal reforms in Nigeria ranging from high debt burden and debt servicing costs to rising debt levels and increasing debt service payments which constrain fiscal space for essential government spending
Proffering a strategic solution, Prof. Uwaleke said implementation of fiscal reforms such as controlling government spending by prioritizing critical expenditures and gradually reducing budget deficits will consolidate all the pieces of legislation that regulate the budget process adding that the implementation of the recommendations on the fiscal policy and tax reforms would address the pre-existing issues in the system.
