Debt Burden: Senate To Amend Fiscal Responsibility Act

The Senate is set to pass a resolution to amend the Fiscal Responsibility Act (FRA) 2007 which establishes the Fiscal Responsibility Commission (FRC), based on the Medium Term Expenditure Framework (MTEF) report.

Chairman of the Senate Committee on Finance, Senator Muhammed Sani Musa, stated this during the ongoing 2023 budget defense and 2024 budget presentation at the National Assembly.

The FRC plays a critical role in monitoring the fiscal policies and helping to generate what the monetary policies can achieve.

Musa said the Senate was going to work on the FRA 2007, and look at areas that can strengthen the commission and also look at the area of human capital.

He said, “We are worried everyday about the huge debt burden we are experiencing in Nigeria.

“We have made a law, and we must abide by those laws because most sub-national governments are not supposed to go to any bank to collect any overdraft without clearance or proof of compliance from the Fiscal Responsibility Commission.”

He assured the Senate is ready to create a better working environment for the Fiscal Responsibility Commission.

He said the input the commission has already made at the National Assembly is yielding positive results on revenue.

He said the Appropriation Committee will reason with their committee and do something about the budget of the commission.

In his presentation, chairman of the Fiscal Responsibility Commission (FRC),  Victor Muruako appealed to the Senate Committee on Finance to keep supporting the commission to actualise her mandate.

He placed more emphasis on adequate funding in the successful implementation of the Act.

He solicited the assistance of the Senate and expressed the willingness of the commission to ensure higher remittances of revenue by the ministries, directorates and agencies.

Muruako considered the proposal of independent revenue estimated to be N3m as an error and proposed a further increase to the sum of N20m.

He expressed optimism that this is attainable, hence their proposal should be adjusted. He also challenges other agencies to improve on their revenue drive.