In a significant development during the ongoing 2023 budget defence and 2024 budget presentation at the National Assembly, the Senate has passed a resolution to amend the Fiscal Responsibility Act, 2007.
This decision is based on the Medium Term Expenditure Framework report, and it reflects the Senate’s commitment to strengthening fiscal policies and addressing concerns related to Nigeria’s growing debt burden.
The Chairman of the Senate Committee on Finance, Senator Muhammed Sani Musa, highlighted the crucial role of the Fiscal Responsibility Commission in monitoring fiscal policies and aligning them with monetary policies.
A statement by the Head, Strategic Communications Directorate, Bede Ogueri Anyanwu, emphasised the need to fortify the commission and address issues related to human capital, particularly in the context of Nigeria’s increasing debt challenges.
The statement quoted Musa as underscoring the importance of abiding by existing laws, especially the Fiscal Responsibility Act, 2007, which restricts sub-national governments from obtaining overdrafts without clearance or compliance proof from the Fiscal Responsibility Commission.
Assuring the commission of the Senate’s commitment to creating a conducive working environment, Senator Musa stated that the Committee would carefully consider the recommendations made by the Commission and work towards a more effective budget.
During the budget defence, the Chairman of the Fiscal Responsibility Commission, Barrister Muruako, appealed for continued support from the Senate Committee on Finance. He emphasized the significance of adequate funding for the successful implementation of the Act and sought the Committee’s assistance in ensuring higher revenue remittances from Ministries, Directorates, and Agencies.
Muruako challenged the proposed independent revenue estimate of N3m, considering it an error. He advocated for an increase to N20m, expressing confidence in achieving this target. He called on other agencies to enhance their revenue drive.
The chairman reported significant progress in revenue tracking and facilitation, with a total of N1.3tn recorded in 2022. As of October 2023, the figure had risen to N1.66tn, with a target to reach N2tn by December 2023.
The FRC boss assured the Senate committee the commission could fund her budget if the government could give the desired support.
Others who took part in the budget defence include the Minister of Finance, Wale Edun, and the Accountant General of the Federation, Oluwatoyin Sakirat Madein.
In conclusion, the FRC boss assured the Senate Committee on Finance that with the government’s support, the commission could successfully fund its budget. Notable participants in the budget defence included the Minister of Finance, Wale Edun, and the Accountant General of the Federation, Oluwatoyin Sakirat Madein.
