11 of the 36 states in the country have yet to domesticate the Fiscal Responsibility Act, more than 25 years after the National Assembly enacted it.
The Act, currently before the National Assembly for amendment, provides for prudent management of the nation’s resources and ensures long-term economic stability.
The affected states include Edo, Rivers, Imo, Kano, Katsina, Borno, Plateau, Ogun, Oyo, Zamfara and Ondo.
Speaking at the opening of a two-day financial accountability retreat for subnationals and civil societies in Port Harcourt, chairman of the Fiscal Responsibility Commission (FRC) Barrister Victor Muruako wondered what is restricting the states from domesticating the Act.
The retreat, with the theme: “Strengthening Financial Accountability at Sub-nationals Levels”, was attended by representatives of the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and leading civil society organisations.
Muruako said: “Ordinarily, states are supposed to adopt their own fiscal responsibility law but some states are yet to do so. What is holding them?”
He stated that state governments were not supposed to go into borrowing without the backing of the federal government, pointing out the issues of borrowing are on the exclusive list.
The FRC chairman said: “The issues of borrowing are on the exclusive list and states cannot go about borrowing or conveniently conclude such without the permission of the federal government.”
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