Fiscal Responsibility Commission Generates N2trn Revenue in 14years, Says Chairman

Deji Elumoye

The Fiscal Responsibility Commission (FRC) has generated over N2 trillion since it establishment in 2007, the Chairman of the commission, Victor Muruako, has said.

The revenue, he added, had since been remitted to the Consolidated Revenue Fund (FRC) of the Federal Government.
Murako made this disclosure Tuesday at the
public hearing on the bill for the repeal and re-enactment of the Fiscal Responsibility Act organised by the Senate committee on Finance.

In his presentation, the FRC boss stressed the need for the commission to be strengthened in all ramifications and its responsibilities, powers and functions properly streamlined.

He also said the move to repeal the Act will ultimately improve the commission’s funding and capacity to increase the generation of independent revenue into the CRF of the federal government as well as end the current state of impunity with which statutory obligations imposed by the Act which are routinely ignored by many MDAs & GOEs.

His words: “The generation of independent revenue through the remittance of operating surplus is one aspect of the mandate of the Commission that has added great value to governance.

“It is noteworthy that the commission has since inception caused over two trillion naira to be remitted to the CRF in spite of the lapses in the present Act. It is expected that the amendment bill will cause even more revenue to be remitted into the federal government coffers by the present 122 Schedule corporations (increased from 30 and still counting) as well as align the same with scant legislation like the finance act 2020″.

The legislation, he said, has made elaborate provisions for offenses and penalties for the infringement of the provision of the Act which include penal and financial sanctions.

He also emphasised the need for “proper funding” for the commission.

“The need for a special and sustainable funding arrangement to enable it deliver on its mandate is starkly evident.
“The proposal in the bill for the retention by the commission of a portion of the operating surpluses paid into the CRF of the federal government as cost of collection, if passed will go a long way in securing and enhancing the crucial financial autonomy necessary for the commission to meet the expectation of the nation.”

The legislation, sponsored Senator Aisha Dahiru, seeks to curb financial fraud and wastages within Ministries, Departments and Agencies (MDAs) to ensure more effective and efficient delivery of public services.

The bill, according to Dahiru, will provide a better legal framework to back the operations of the commission, which she said has been limited.

“If passed, will expand the functions and powers of the FRC; ensure adequate funding/increased budgetary allocations to the Commission; ensure the remittance of operating surplus by MDAs; ensure enforcement of penalties and establish the Fiscal Responsibility Council,” she said.