{"id":3825,"date":"2023-10-09T13:14:22","date_gmt":"2023-10-09T13:14:22","guid":{"rendered":"https:\/\/fiscalresponsibility.ng\/?p=3825"},"modified":"2023-10-09T13:42:25","modified_gmt":"2023-10-09T13:42:25","slug":"lending-to-governments-sgf-urges-banks-to-follow-fra-rules","status":"publish","type":"post","link":"https:\/\/fiscalresponsibility.ng\/?p=3825","title":{"rendered":"Lending to Governments: SGF urges banks to follow FRA rules"},"content":{"rendered":"

The Secretary to the Government of the Federation (SGF), Sen. George Akume has called on banks to follow \u00a0provisions of the Fiscal Responsibility Act (FRA) when lending to Governments in the Federation and their institutions.<\/p>\n

A statement by Bede Anyanwu, Head of Strategic Communications at the Fiscal Responsibility Commission (FRC) said Akume made the call in a keynote address at a Stakeholder Dialogue on Saturday in Lagos.<\/p>\n

He said dialogue was aimed at promoting fiscal discipline.<\/p>\n

Akume was represented by a staff in the SGF`s Office,\u00a0 Dr. David Eze.<\/p>\n

The SGF affirmed that following the rule was to ensure that borrowing was done the right way for the right reasons to improve fiscal\u00a0sustainability.<\/p>\n

He\u00a0 encouraged\u00a0 all\u00a0 stakeholders\u00a0 to\u00a0 commit\u00a0 to\u00a0 more\u00a0 prudent management of public finances to achieve desired outcomes.<\/p>\n

The Executive Chairman of the FRC, Victor Muruako equally called on all Nigerian banks to adhere to the provisions\u00a0of\u00a0 the FRA\u00a0 2007\u00a0 in\u00a0 their\u00a0 lending\u00a0 practices\u00a0 to government and its agencies.<\/p>\n

\u201cThe Fiscal Responsibility Act 2007 is Nigeria\u2019s foremost legal framework for the\u00a0 promotion,\u00a0 monitoring\u00a0 and enforcement\u00a0 of fiscal discipline.<\/p>\n

\u201cIt stipulates\u00a0in Section 45(2), that lending by banks to governments or their agencies in contravention of the provisions\u00a0 of\u00a0 the\u00a0 Act\u00a0 shall\u00a0 be\u00a0 unlawful.<\/p>\n

\u201cPART\u00a0 X\u00a0 of\u00a0 the\u00a0 act\u00a0 provides\u00a0 guidelines\u00a0 for borrowing by government agencies and public institutions, including the requirement for obtaining the necessary approvals and proof of compliance to ensure the sustainability of loans.<\/p>\n

\u201cRecognising the critical role that loans play in driving socio-economic development, the FRC\u00a0 brought\u00a0 banks\u00a0 together\u00a0 with\u00a0 regulators,\u00a0 policy\u00a0 makers\u00a0 and\u00a0 government\u00a0 in\u00a0 the Stakeholder\u00a0 Dialogue\u00a0 to\u00a0 highlight the\u00a0 provisions\u00a0 of the\u00a0 FRA\u00a0 on\u00a0 responsible\u00a0 lending.<\/p>\n

\u201cDiscussions focused on measures to enhance compliance to improve the nation\u2019s debt management practices,\u201d the statement said.<\/p>\n

The FRC boss emphasized the importance of compliance with the FRA to improve loan performance, to maintain macro-economic stability.<\/p>\n

\u201cWe\u00a0 are\u00a0 committed\u00a0 to\u00a0 good\u00a0 corporate\u00a0 governance,\u00a0 fiscal\u00a0 stability\u00a0 and\u00a0 the pursuit of economic development to improve the lives of citizens while improving our nation\u2019s \u00a0 viability.<\/p>\n

\u201cWe, \u00a0 therefore, \u00a0 enjoin \u00a0 all \u00a0 stakeholders \u00a0 to \u00a0 support \u00a0 the \u00a0 bold macroeconomic reform initiatives of the administration of President Bola Ahmed Tinubu\u00a0 by\u00a0 ensuring\u00a0 more\u00a0 fiscal\u00a0 discipline\u00a0 in\u00a0 line\u00a0 with\u00a0 the\u00a0 provisions\u00a0 of\u00a0 the\u00a0 Fiscal Responsibility Act 2007 (FRA) .\u201d<\/p>\n

The chairman said that the\u00a0 provisions\u00a0 of the\u00a0 FRA\u00a0 serve to\u00a0 keep the\u00a0 lender, borrower, regulator, evaluator, assessor, and indeed the beneficiary of public sector loans on the same page.<\/p>\n

Mr. Greg\u00a0 Jobome, Executive \u00a0 Director, \u00a0 Risk Management Division, Access Bank who responded \u00a0 on \u00a0 behalf\u00a0 of\u00a0 the \u00a0 banks. Said \u00a0they will continue to work together with \u00a0stakeholders\u00a0 to\u00a0 \u00a0 foster\u00a0 responsible\u00a0lending\u00a0 practices, transparency, and accountability.<\/p>\n

The FRC Stakeholder Dialogue brought together a diverse group of participants including banking Institutions, government representatives, economists, academics and experts in fiscal governance.<\/p>\n

https:\/\/nannews.ng\/2023\/10\/09\/lending-to-governments-sgf-urges-banks-to-follow-fra-rules\/<\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

The Secretary to the Government of the Federation (SGF), Sen. George Akume has called on banks to follow \u00a0provisions of the Fiscal Responsibility Act (FRA) when lending to Governments in the Federation and their institutions. A statement by Bede Anyanwu, Head of Strategic Communications at the Fiscal Responsibility Commission (FRC) said Akume made the call…<\/p>\n","protected":false},"author":4,"featured_media":3823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/posts\/3825"}],"collection":[{"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3825"}],"version-history":[{"count":2,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/posts\/3825\/revisions"}],"predecessor-version":[{"id":3828,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/posts\/3825\/revisions\/3828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=\/wp\/v2\/media\/3823"}],"wp:attachment":[{"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fiscalresponsibility.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}