The Fiscal Responsibility Commission (FRC) has successfully compelled various federal government agencies and arms of government to remit more than ₦2 trillion into the Consolidated Revenue Fund (CRF) since 2007.
This was disclosed by the Executive Chairman of the FRC, Barrister Victor Muruako, during a one-day study visit by the Bauchi State Public Procurement Bureau to the commission’s headquarters in Abuja. Muruako, represented by the Director of Admin and Human Resource, Muhammed Zailani, highlighted the commission’s critical role in promoting transparency, accountability, and prudent fiscal management within Nigeria’s public sector.
Muruako elaborated on the enforcement of the Fiscal Responsibility Act (FRA) of 2007, which mandates certain federal agencies and arms to remit 80 percent of their operating surplus to the CRF. He explained that while the 80 percent remittance requirement specifically applies to corporations listed in the FRA’s schedule, the Act’s provisions extend beyond these entities, particularly in the areas of borrowing regulations as outlined in Part X of the Act. These regulations apply to all agencies and corporations, regardless of their listing status.
The Act also governs other crucial aspects of fiscal governance, including the Medium-Term Expenditure Framework (MTEF), budgetary processes, revenue generation, and expenditure management across the Federal Government and its agencies. Muruako emphasized that these regulatory frameworks are essential for maintaining a rule-based and transparent fiscal regime, in stark contrast to the previous culture of discretionary and profligate spending.
During the interaction with the Bauchi State Public Procurement Bureau, Muruako highlighted several key achievements of the FRC. In addition to securing over ₦2 trillion in remittances, the commission has significantly reformed Nigeria’s budgetary process through the introduction of the MTEF. This framework has facilitated public participation in budget preparation, enhancing transparency and ensuring alignment between fiscal policies and long-term economic goals.
The FRC has also been instrumental in monitoring and evaluating the federal budget, publishing fund releases to the three tiers of government, and enforcing timelines for auditing federal accounts. Moreover, the commission has provided technical assistance to state governments, leading to the establishment of Fiscal Responsibility Commissions in over 15 states across the country.
Muruako outlined the commission’s ongoing activities, including federal government project verification, sub-national debt verification, and the monitoring and enforcement of operating surplus payments and internally generated revenue (IGR) from government agencies. The FRC also ensures compliance with public participation in the budget process and the timely preparation and presentation of the MTEF. Additionally, the commission undertakes fiscal and financial studies, analysis, and diagnostics to strengthen public finance management.
However, Muruako did not shy away from discussing the challenges faced by the commission, which include insufficient manpower, low budgetary provisions, inadequate office accommodation, and limited technical capacity. Poor staff remuneration also remains a significant hurdle, hindering the commission’s ability to attract and retain qualified personnel.
In his advice to the visiting members of the Bauchi State Public Procurement Bureau, Muruako urged them to prepare for the inevitable challenges that come with enforcing public procurement laws. He highlighted the entrenched culture of inefficiency and corruption in public procurement processes, noting that many politicians view procurement as an avenue to secure their “share” of government funds.
Muruako cautioned that the path ahead would not be easy, especially as those who initially supported reforms might later resist their implementation. However, he emphasized the importance of perseverance and the need to stand firm in promoting good public finance management, even in the face of opposition.
“Good public procurement processes and fiscal responsibility are central to sustainable economic growth, improved standards of living, good governance, increased transparency, and accountability,” Muruako stated, underscoring that these principles are indispensable for fostering public participation in government income and expenditure management, ensuring fiscal discipline, and promoting efficiency in the economy.
