The Fiscal Responsibility Commission (FRC) has introduced a Fiscal Responsibility Code of Conduct, a comprehensive framework aimed at strengthening fiscal discipline, transparency, and accountability in Nigeria’s public finance system.
Speaking at a stakeholders’ validation meeting held at the Savvy Instant Offices in Abuja, the Executive Chairman of the Commission, Victor Muruako described the Code as an “indispensable toolkit” for the effective enforcement of the Fiscal Responsibility Act (FRA) 2007.
The event, attended by representatives of Ministries, Departments, and Agencies (MDAs), civil society organisations, development partners, and virtual participants, marks a milestone in the Commission’s effort to close enforcement gaps in Nigeria’s fiscal framework.
Muruako expressed deep appreciation to the European Union, the Rule of Law and Anti-Corruption (ROLAC) Programme, International IDEA, and the Centre for Social Justice (CSJ) for their partnership in developing the Code.
He paid special tribute to CSJ’s Lead Director, Eze Onyekpere for what he described as “longstanding partnership and zealous commitment to expanding the frontiers of fiscal responsibility in Nigeria.”
Highlighting the challenges faced in implementing the FRA since its enactment in 2007, Muruako noted that while the Act establishes four core mandates prudent management of resources, long-term economic stability, greater fiscal accountability, and promotion of national economic objectives it has been hampered by weak provisions for sanctions against violators.
According to him, “A number of inadequate and inchoately created ‘offences’ in the Act, with no prescribed sanctions or punishments, have prolonged a regime of impunity despite our concerted efforts to seek legislative remedies since 2012.”
The new Code of Conduct seeks to address these loopholes by clearly defining expected and prohibited behaviours for public finance officers, outlining sanctions for infractions, and aligning with other relevant laws to ensure enforcement.
Objectives of the Fiscal Responsibility Code of Conduct reducing risks in public financial management, including budget fraud and corruption, from budget planning to implementation; promoting transparency and accountability in fiscal decision-making and execution of contracts; providing a framework for ethical decision-making that balances economic efficiency with social responsibility; and ensuring fiscal discipline by limiting borrowing to capital projects and human development, in compliance with the FRA’s conditions.
Muruako stressed that the FRC serves as Nigeria’s fiscal council, in line with global best practices recognised by the World Bank, IMF, and OECD.
He noted that this includes independently assessing government fiscal policies and performance against macroeconomic objectives without partisan influence.
The Commission, he said, has also developed other regulatory instruments, such as the Standard Template for Calculating Operating Surplus and Internally Generated Revenue and guidelines for banks to obtain proof of compliance before lending to any government entity, as required by Section 45(1) of the FRA.
The FRC pledged to sustain its collaboration with civil society and development partners to ensure the effective implementation of the Code.
Muruako expressed optimism that the ideas generated from the validation meeting would “add positive value to the final document” and further entrench fiscal responsibility across all levels of government.
“We must instil a culture of fiscal discipline that safeguards public resources, promotes transparency, and secures economic stability for present and future generations,” he stressed.
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