In a landmark stakeholder engagement focused on strengthening accounting regulations in Sub-Saharan Africa, the Executive Chairman of Nigeria’s Fiscal Responsibility Commission (FRC), Victor Muruako, Esq., underscored the vital role of the Fiscal Responsibility Act (FRA) 2007 in advancing financial transparency and accountability across the region.
Addressing an audience of policymakers, regulators, and accounting professionals in Kigali, Muruako emphasized that robust accounting regulations and fiscal oversight are cornerstones for sustainable economic development and public trust.
Enacted in 2007, Nigeria’s Fiscal Responsibility Act was designed to promote prudent management of the nation’s resources, ensure long-term macroeconomic stability, and institutionalize a culture of accountability in public finance. Muruako highlighted that the Act mandates federal government agencies and corporations to prepare and submit audited financial statements (AFS) within three months after the end of each fiscal year.
“These audited statements are not merely compliance documents; they are critical tools for computing operating surplus liabilities and determining equitable remittances to the Consolidated Revenue Fund,” Muruako stated. “By enforcing timely and credible financial reporting, the FRA ensures transparency and reduces opportunities for mismanagement.”
The Chairman further noted that the synergy between accounting standards regulated by the Financial Reporting Council of Nigeria (FRCN) and the provisions of the FRA strengthens fiscal oversight. Standardized audit reports, guided by frameworks such as the International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS), are essential for accurate monitoring of debt limits and the effective use of borrowed funds.
“In Nigeria, the combination of strong accounting regulations and the FRA creates a system where public finance mirrors democratic governance—transparent, participatory, and accountable,” he added.
While Nigeria has made significant strides, Muruako urged other Sub-Saharan African nations to adopt similar fiscal responsibility legislation, tailored to their economic contexts. He argued that adopting fiscal responsibility laws, along with harmonized accounting standards, can foster investor confidence, enhance creditworthiness, and support equitable development across the continent.
“Countries that institutionalize fiscal responsibility frameworks will not only improve financial governance but also ensure that resources are directed toward critical sectors like health, education, and infrastructure,” he said.
Highlighting the importance of regional cooperation, Muruako advocated for enhanced partnerships among regulatory bodies, professional associations, and governments to share best practices, invest in capacity building, and strengthen enforcement mechanisms.
“This engagement in Kigali marks a pivotal step toward building a transparent and accountable future for Sub-Saharan Africa,” he concluded. “Together, we can create a financial ecosystem that supports sustainable growth and equitable prosperity for all.”
The event, convened by the Financial Reporting Council of Nigeria, brought together key stakeholders committed to advancing the integrity and reliability of financial reporting across Africa.