The House of Representatives has taken a significant step towards ensuring prudent management of Nigeria’s resources. A consolidated bill seeking to repeal the Fiscal Responsibility Act of 2007 and re-enact the Fiscal Responsibility Act, 2024, has passed its second reading. Sponsored by Deputy Speaker Benjamin Kalu and six others, this bill aims to promote economic stability, strengthen financial resource management, and guarantee accountability and transparency in fiscal operations.
The proposed legislation addresses loopholes in the existing framework and empowers the Fiscal Responsibility Commission (FRC) to enforce revenue generation effectively. Hon. Marcus Onobun, leading the debate, emphasized the need to reposition the FRC to increase its capacity to generate independent revenue for the Federal Government.
The current Fiscal Responsibility Act, in operation since 2007, has been found to contain weaknesses hindering its effective operation. The new bill proposes expanding the Commission’s powers, including direct prosecutorial powers, to enhance enforcement and collaboration with anti-corruption agencies.
Key provisions of the bill include:
– Improved Funding: Enhancing the Commission’s funding for better service delivery
– Offenses and Penalties: Establishing administrative and penal sanctions for infringements and contraventions
– Expanded Powers: Conferring direct prosecutorial powers on the Commission
The bill was supported by the majority of lawmakers and has been referred to the Committee on Finance for further action. This development follows other significant legislative actions, such as the passage of bills to amend tax laws and establish state police.
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