The Fiscal Responsibility Commission (FRC) has successfully compelled various Federal Government Agencies and arms of government to remit over N2 trillion into the Consolidated Revenue Fund (CRF) since 2007.
The disclosure was made on Tuesday, August 27, by the Executive Chairman of the Fiscal Responsibility Commission, Victor Muruako, during a one-day study visit of the Bauchi State Public Procurement Bureau to the Commission’s Headquarters in Abuja.
Muruako, who was represented by Muhammed Zailani, Director of Admin and Human Resource, noted that this achievement underscores the Commission’s crucial role in promoting transparency, accountability, and prudent fiscal management within Nigeria’s Public Sector.
He elaborated on the Commission’s 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.
“The Fiscal Responsibility Act (FRA) applies to the Federal Government, its agencies, and its arms, with varying degrees of obligations,” he said.
Muruako explained that while some obligations, such as the 80 percent Operating Surplus Remittance, are specific to corporations listed in the Schedule to the FRA, 2007—those which have neither been privatized nor wound up—the Act’s provisions extend beyond these entities. However, the requirements and conditions for borrowing, as stipulated in Part X of the Act, apply to all Agencies and Corporations, regardless of their listing status.
Additionally, the Act governs other critical 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 contrast to the previous culture of discretionary and profligate spending.
During the interaction with the Bauchi State Public Procurement Bureau, Muruako noted several key achievements of the FRC. Beyond the N2 trillion remittance into the CRF, the Commission has played a pivotal role in reforming Nigeria’s budgetary process through the introduction of the MTEF.
This framework has facilitated public participation in budget preparation, enhancing transparency and ensuring that fiscal policies are aligned with 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 the auditing of federal accounts. Furthermore, 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, which include 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 timely preparation and presentation of the MTEF. In addition, the Commission undertakes fiscal and financial studies, analysis, and diagnosis to strengthen public finance management.
However, Muruako did not shy away from discussing the challenges faced by the Commission. These include insufficient manpower, low budgetary provisions, inadequate office accommodation, and limited technical capacity. Poor staff remuneration also remains a significant hurdle, which has hindered 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 see 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.
He added that these principles are indispensable for fostering popular participation in government income and expenditure management, ensuring fiscal discipline, and promoting efficiency in the economy.