FRC urges FG, states, LGs to deepen fiscal sustainability across tiers

The Fiscal Responsibility Commission (FRC) is pushing for fiscal sustainability across all tiers of government in the country in their efforts to deliver on their governance promises.

This implies that the Federal Government, the 36 state governments, and the 774 local governments must imbibe the discipline to sustain their current revenue and expenditure drives without threatening some of their liabilities or promises to the people.

The Chairman of the commission, Mr Victor Muruako, made the call in Abuja on Tuesday while speaking at the ‘National Treasury Workshop’ organised by the Office of the Accountant-General of the Federation, according to a statement by the FRC’s Head of Strategic Communications Directorate, Bede Anyanwu.

He particularly mentioned the third tier of government and its importance in revenue generation to support services and project implementation at the local government level.

Muruako said if local governments function effectively, they could generate more revenue, recalling a time when essential services such as primary healthcare, education, and agriculture were efficiently managed at the grassroots level.

He advocated increased revenue allocation to sub-national governments, arguing that direct financial resources would have a more tangible impact on citizens.

The FRC boss also urged local governments to engage with their communities to understand their needs before drafting budgets, as this would help drive internally generated revenue (IGR).

Muruako highlighted the significance of the Fiscal Responsibility Act 2007, which was designed to strengthen independent revenue sources, encouraging participants to leverage Section 51 of the Act to question any lack of transparency in government activities.

He also praised President Bola Tinubu’s fiscal reforms, particularly in tax policy, stating that such measures would enhance revenue generation at the state and local government levels.

The FRC said, “The call for fiscal sustainability aligns with ongoing efforts to improve financial accountability and governance across all tiers of government in Nigeria.”

Besides Muruako, other discussants at the session included Dr Mohammed Bello-Shehu, Chairman, Revenue Mobilisation Allocation & Fiscal Commission (RMFAC); Dr Oluwatoyin Madein, Accountant General of the Federation; and Hon. Akin, Chairman, State Commissioners Forum & Commissioner for Finance, Ekiti State.

“These leaders engaged in in-depth discussions on revising the revenue allocation formula to enhance fiscal federalism and promote development at sub-national levels.

“The workshop aims to provide actionable solutions to Nigeria’s revenue challenges while fostering transparency, accountability, and efficiency in public finance management,” the FRC added.

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