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Tag: Fiscal Responsibility Commission

  • FRC cautions states, council against borrowing without clearance

    FRC cautions states, council against borrowing without clearance

    The Federal Government has warned states and local governments against borrowing from financial institutions without a Certificate of Proof of Compliance from the Fiscal Responsibility Commission (FRC).

     It said loans gotten without an FRC certificate are not only against the law but have serious legal implications.

    The commission issued the warning during a financial management workshop attended by the 23 local government chairmen in Kaduna yesterday.

    FRC’s Director of Legal Services, Investigation and Enforcement,  Charles  Abana, represented the Executive Chairman, Victor Muruako, at the event organised by the Kaduna State Fiscal Responsibility Commission.

     The commission said states and local governments needed to understand that the Fiscal Responsibility Act of 2007 does not permit them to borrow for everyday running costs.

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     It stated that governments that intend to get loans must understand that they must use such loans for projects like infrastructure and human development that have long-term value.

    The commission, in a statement by its Strategic Communication officer, Bede   Anyanwu, also described the practice of spending public money without approval in the budget as  “fiscal haram,” which damages public trust and slows down development.

    “Every kobo spent must have value for money. Public resources must be planned, budgeted for, properly appropriated and disbursed towards the execution of projects that positively impact the lives of the people,” a part of the statement read.  

    The FRC cautioned local government leaders against giving out public funds to friends, supporters, party loyalists and adding names of people who are not properly employed to their payrolls.

    According to the commission, all spending must follow what is approved in the budget and must be tied to real work and real benefits for the people.

     It also warned financial institutions, especially banks, against granting loans outside the law. Public officers who ignore the law,  said the commission,   risk serious sanctions.

    The federal agency admonished council chairmen to run open and transparent administrations, manage funds carefully, and think about how their decisions today could affect future generations.

     The commission said it was ready to offer technical support to help local governments put proper fiscal responsibility laws in place for a strong and disciplined financial system.

      Governor  Uba Sani was praised in the statement for supporting reforms that promote transparency and accountability.

        Sani condemned the misuse and theft of public funds and called on all elected officials and political appointees to act with honesty and openness in carrying out their duties.

     He said his administration remains committed to reforms, financial discipline, and responsible leadership, adding that people’s trust can only be earned when public money is managed properly and used for their benefit.

    Earlier,  Executive Chairman of the state fiscal responsibility commission, Sani  Bako, described the workshop as an important step towards improving how public funds are managed at the local level.

    Bako welcomed the support of agencies such as the Code of Conduct Bureau, the Economic and Financial Crimes Commission, the Bureau of Public Procurement, and the Centre for Fiscal Transparency and Public Integrity.

    He added that strong public financial management is key to lasting development, leading to better roads, cleaner communities, improved schools, and overall economic growth.

     He noted that other agencies at the workshop presented papers on ethical leadership, proper procurement, and fighting corruption, all geared towards ensuring that public funds are used wisely at every level of government.

  • FRC backs Tax Reform bill, calls for fiscal sustainability

    FRC backs Tax Reform bill, calls for fiscal sustainability

    The Fiscal Responsibility Commission (FRC) has expressed strong support for the proposed Tax Reform Bill, which is currently undergoing a public hearing at the House of Representatives.

    In a statement issued on Wednesday, Bede Ogueri Anyanwu, Head of Strategic Communications at the FRC, noted that the commission’s executive chairman, Victor Muruako, views the bill as a significant step toward strengthening Nigeria’s economy and ensuring fiscal responsibility.

    Muruako said that the bill aligns with the Fiscal Responsibility Act, 2007, which promotes prudent financial management, macroeconomic stability, and transparency in fiscal policy. 

    He stressed the importance of diversifying revenue sources, reducing Nigeria’s reliance on volatile oil markets, and improving fiscal transparency to prevent excessive and unsustainable government spending. 

    According to him, a simplified and more predictable tax system will encourage investment, stimulate economic growth, and create jobs, ultimately strengthening Nigeria’s fiscal position.

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    The Fiscal Responsibility Commission also urged lawmakers to include several key measures in the tax reform process. It called for the modernization and harmonization of tax operations to streamline tax administration, enhance efficiency, and reduce bureaucratic obstacles. 

    It also recommended strong support for small businesses, emphasizing the need for tax incentives that would help Micro, Small, and Medium Enterprises (MSMEs) grow and thrive.

    In addition, the Commission stressed the importance of equity and fairness in taxation, ensuring that no segment of the economy is unfairly burdened. 

    It also highlighted the need for enhanced compliance and enforcement measures to curb tax evasion and improve government revenue collection.

    Furthermore, it called for an adjustment of revenue allocation to ensure that resources are fairly distributed among federal, state, and local governments.

    The Fiscal Responsibility Commission reiterated that if these reforms are successfully passed, Nigeria will benefit from a more efficient, equitable, and business-friendly tax system. 

    The reforms will also help increase government revenue for national development while fostering economic stability. 

    The Commission pledged to work with all stakeholders to ensure that tax policies support economic growth, transparency, and long-term fiscal sustainability.

  • Fiscal Responsibility Commission endorses tax reform bills as equitable, transformative

    Fiscal Responsibility Commission endorses tax reform bills as equitable, transformative

    The Fiscal Responsibility Commission (FRC) has thrown its support behind the Tax Reform Bills currently under consideration by the National Assembly.

    The commission believes that the tax reform bills have the potential to enhance fiscal governance and boost economic growth.

    Victor Muruako, chairman of the commission, shared this during an interaction with academics and journalists at the Fellowship Lecture and Investiture Ceremony of the Capital Market Academics of Nigeria (CMAN) held on December 9, 2024, at the NDIC Academy, Abuja.

    Muruako revealed that a critical analysis conducted by the FRC shows the proposed reforms do not favour any specific region or group. Instead, they promote a fairer distribution of resources among Nigeria’s federating states.

    “The bills are designed to benefit all Nigerians, particularly low-income earners and Micro, Small, and Medium Businesses (MSMBs),” he stated.

    The bills, developed by the Presidential Fiscal Policy and Tax Reforms Committee, include provisions to: provide Tax Relief for Low-Income Earners: Individuals earning less than N1.7 million annually will see a reduction in income tax; reduce Tax Burden on Small Businesses: Companies with turnovers below N50 million will be exempted from taxes, benefiting over 90% of small businesses; simplify the Tax System: The number of taxes and levies will be reduced, streamlining tax administration; increase Revenue for Subnational Governments: States and local governments will receive a larger share of VAT revenue, enhancing public service delivery and improve Ease of Doing Business: The reforms aim to reduce compliance burdens for businesses and make the tax system more user-friendly.

    Muruako highlighted the broader economic implications of these reforms. He noted that tax relief for low-income earners could boost household savings and investments, thereby driving sustainable economic growth. Similarly, easing the tax burden on MSMBs would allow them to grow organically, contributing to a rise in Nigeria’s GDP over time.

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    Responding to controversies surrounding the bills, Muruako commended President Bola Ahmed Tinubu for fostering dialogue, describing him as a Democrat. He urged stakeholders from all geopolitical zones to support the reforms, emphasizing their transformative potential for Nigeria’s fiscal and economic landscape.

    “The reforms are not just about increasing government revenue—they are about creating an enabling environment for businesses, reducing poverty, and ensuring equitable resource distribution,” Muruako stated.

    With these reforms, the federal government aims to redefine Nigeria’s tax architecture, making it fairer, more efficient, and better aligned with the nation’s development goals.

  • FRC urges civil society groups to leverage on data for accountability advocacy

    FRC urges civil society groups to leverage on data for accountability advocacy

    The Fiscal Responsibility Commission (FRC) has urged various civil society groups and other organizations to exploit the abundant data provided by the Fiscal Sustainability Plan (FSP) and the State’s Fiscal Transparency and Sustainability Program (SFTAS) to further enhance advocacy for accountability and prudence.

    By utilizing this data, FRC believes civil society groups can promote transparency, accountability, and good governance in public financial management.

    The FRC believed that this collaboration would strengthen the fight against corruption and ensure prudent management of public resources.

    The Executive Chairman of the Commission, Chief Victor Muruako made the appeal in Owerri while addressing the opening ceremony of a three-day South-East zonal retreat on Fiscal Responsibility of sub-nations and Civil Society Organizations which ended on Thursday.

    Muruako stated that the effectiveness of the Civil Society Organizations in utilizing the available data was very critical in making the governments perform as expected.

    “It is essential for CSOs to play a more active role in advocating transparency, Accountability, and prudent management,” the Chairman said.

    Muruako reminded Nigerians that the Fiscal Responsibility Act empowered them with the legal capacity to enforce the provisions of the Act through the Courts.

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    He, however, cautioned the citizens to exercise the power responsibly and based on evidence, rather than anecdotes.

    While enjoining the academia to process the fiscal data freely for public use, the Chairman suggested for postgraduate research projects of social science students and other faculties in the higher education institutions in the Southeast to intentionally focus on the linkages between transparency,

    On accountability, prudence and economic development, Muruako explained that the Commission had mapped out various strategies to ensure that the states in the federation improved their adoption of good practice fiscal behaviors that were consistent with those at the federal level.

    According to him, such strategies had led to “The establishment of fiscal responsibility legislation in Anambra, Ebonyi and Imo states to mirror that of the Federal Government, while all the five states of the Southeast now have their year 2023 Annual Financial statements published Online.”

    He commended the Imo State government for graciously hosting the Southeast sensitization programme with the theme; ‘Fostering Fiscal Accountability :Sub Nationals and Civil Society collaboration.’

  • Fed Govt to clamp down on banks breaching lending rules

    Fed Govt to clamp down on banks breaching lending rules

    The federal government has vowed to take steps to address the issue of banks lending money to state governments without adhering to the provisions of the Fiscal Responsibility Act (FRA).

    Additionally, the government has directed the Fiscal Responsibility Commission (FRC) to provide increased technical support to local government councils in line with recent developments granting these councils financial autonomy.

    These steps are in response to two key events. First, the Supreme Court’s recent ruling that granted financial autonomy to local governments, ensuring they manage their finances independently from state governments. Second, the federal government is determined to avoid any future embarrassment following the threat by a Chinese company to seize national assets after a state government failed to fulfill its financial obligations in a transaction.

    Speaking at the National Summit of Fiscal Responsibility yesterday in Abuja, Chairman, Fiscal Responsibility Commission (FRC), Barrister Victor Muruako,  expressed deep concern over the role banks play in violating the provisions of the Fiscal Responsibility Act. He noted that banks have been aiding state governments in circumventing the law, particularly with respect to borrowing.

    Muruako cited Section 44.1 of the Fiscal Responsibility Act, which mandates that any government or its agencies intending to borrow funds must present a detailed cost-benefit analysis of the proposed borrowing. This analysis should outline the economic and social benefits of the borrowing project. Furthermore, banks and financial institutions are required to ensure that governments comply with these provisions before loans are approved.

    “We are witnessing a troubling decline in accountability,” Muruako remarked. “In one instance, a state government’s secretary simply signed a declaration claiming compliance with the Act, which then allowed the government to proceed with borrowing. This is deeply alarming.”

    He went on to criticize banks for accepting such documents, noting that financial institutions have made it convenient to approve loans without thoroughly verifying compliance with the law.

     “We have reached out to banks and carried out extensive sensitisation efforts, but it is clear that more needs to be done. We cannot afford to remain silent any longer. This is a matter of national urgency,” Muruako said.

    The FRC Chairman also revealed instances where state fiscal responsibility commissions exceeded their authority by approving loans intended for federal purposes. “This is not the intent of the Act, nor is it in line with the Constitution,” Muruako emphasized, adding that such practices undermine the fiscal responsibility framework.

    Muruako called for greater accountability from all stakeholders involved in government borrowing, stating that “if we are serious about fiscal discipline, we need to respect the law or repeal it if it’s no longer desired.”

    Also addressing the summit, Senator George Akume, the Secretary to the Government of the Federation, represented by former Permanent Secretary Mr. Olusegun Adekunle, issued a directive to the Fiscal Responsibility Commission to extend its technical support to local governments. This is intended to facilitate their adoption of fiscal responsibility measures in line with federal policies and ensure a smooth transition to financial autonomy.

    “The Fiscal Responsibility Commission must provide increased technical support to local governments,” Akume said. “This will help ensure that these councils fully adopt fiscal responsibility practices, policies, and byelaws that align with federal standards.”

    Senator Akume also reiterated the importance of the Supreme Court’s ruling on the financial autonomy of local governments, describing it as a landmark decision that will bring governance closer to the people. He stressed that fiscal rules must be adhered to across all tiers of government, noting that “subnational governments must improve their compliance with the Fiscal Responsibility Act, especially concerning borrowing.”

    Akume further emphasized that sustained efforts and commitment are necessary to achieve positive fiscal change. “Setting clear fiscal rules and adhering to them creates a framework for evaluating and improving our fiscal practices. Coordinating these rules across the federation is crucial for maintaining fiscal cohesion.”

    The SGF added that “It is important to adhere to the provisions of the Fiscal Responsibility Act, requiring both the effort of the Fiscal Responsibility Commission and the Fiscal Responsibility Committee to satisfy and monitor compliance with the provisions of the Act.

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    “Also I would like to emphasize the importance of the Supreme Court’s judgment on financial autonomy by local governments.”

    The National Summit of Fiscal Responsibility brought together key stakeholders from various government agencies, financial institutions, and local government councils to discuss strategies for improving compliance with the Fiscal Responsibility Act and promoting transparency in government borrowing.

    As the Federal Government moves to enforce stricter lending regulations and enhance local government autonomy, the spotlight is now on banks and financial institutions to play their part in ensuring adherence to the law. The collaboration between the Fiscal Responsibility Commission, local governments, and financial institutions is expected to drive more disciplined borrowing practices and foster sustainable fiscal governance across Nigeria.

  • Fiscal Responsibility Commission secures N2tr remittances to treasury

    Fiscal Responsibility Commission secures N2tr remittances to treasury

    The Fiscal Responsibility Commission (FRC) has compelled various federal government agencies and arms of government to remit over N2 trillion into the Consolidated Revenue Fund (CRF) since 2007.

    The disclosure was made by Barrister Victor Muruako, the Executive Chairman of the FRC at a one-day study visit of the Bauchi State Public Procurement Bureau to the commission’s headquarters in Abuja yesterday.

    Muruako who was represented by the Commission’s Director of Admin and Human Resource, Muhammed Zailani, noted that this achievement underscores the commission’s crucial role in promoting transparency, accountability, and prudent fiscal management within Nigeria’s public sector.

    Elaborating on the commission’s enforcement of the Fiscal Responsibility Act (FRA) of 2007 which mandates certain federal agencies and arms to remit 80 percent of their operating surplus to the CRF, Muruako explained that while some obligations, such as the 80 percent operating surplus remittance are specific to corporations listed in the Schedule to the FRA, 2007—those which have neither been privatised nor wound up—the Act’s provisions extend beyond these entities. However, the requirements and conditions for borrowing, as stipulated in Part X of the Act, he said, applies to all agencies and corporations, regardless of their listing status.

    Additionally, the Act governs other critical aspects of fiscal governance, including the Medium-Term Expenditure Framework (MTEF), budgetary processes, revenue generation, and expenditure management across the Federal Government and its agencies. Muruako emphasized that these regulatory frameworks are essential for maintaining a rule-based and transparent fiscal regime, in contrast to the previous culture of discretionary and profligate spending.

    During the interaction with the Bauchi State Public Procurement Bureau, Muruako noted several key achievements of the FRC. Beyond the N2 trillion remittance into the CRF, the commission has played a pivotal role in reforming Nigeria’s budgetary process through the introduction of the MTEF.

    This framework has facilitated public participation in budget preparation, enhancing transparency and ensuring that fiscal policies are aligned with long-term economic goals.

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    The FRC has also been instrumental in monitoring and evaluating the federal budget, publishing fund releases to the three tiers of government, and enforcing timelines for the auditing of federal accounts. Furthermore, the commission has provided technical assistance to state governments, leading to the establishment of Fiscal Responsibility Commissions in over 15 states across the country.

    Muruako outlined the commission’s ongoing activities, which include federal government project verification, sub-national debt verification, and the monitoring and enforcement of operating surplus payments and internally generated revenue (IGR) from government agencies. The FRC also ensures compliance with public participation in the budget process and timely preparation and presentation of the MTEF. In addition, the commission undertakes fiscal and financial studies, analysis, and diagnosis to strengthen public finance management.

    However, he did not shy away from discussing the challenges faced by the commission. These include insufficient manpower, low budgetary provisions, inadequate office accommodation, and limited technical capacity. Poor staff remuneration also remains a significant hurdle, which has hindered the commission’s ability to attract and retain qualified personnel.

    In his advice to the visiting members of the Bauchi State Public Procurement Bureau, Muruako urged them to prepare for the inevitable challenges that come with enforcing public procurement laws. He highlighted the entrenched culture of inefficiency and corruption in public procurement processes, noting that many politicians see procurement as an avenue to secure their “share” of government funds.

    Muruako cautioned that the path ahead would not be easy, especially as those who initially supported reforms might later resist their implementation. However, he emphasized the importance of perseverance and the need to stand firm in promoting good public finance management, even in the face of opposition.

    “Good public procurement processes and fiscal responsibility are central to sustainable economic growth, improved standards of living, good governance, increased transparency, and accountability,” Muruako stated. He added that these principles are indispensable for fostering popular participation in government income and expenditure management, ensuring fiscal discipline, and promoting efficiency in the economy.

  • Fiscal Responsibility Commission generates N1tr

    Fiscal Responsibility Commission generates N1tr

    The Chairman, Fiscal Responsibility Commission, Victor Muruako, has said the agency has consistently contributed N1 trillion to the federal treasury.

    Speaking at a Service Wide Strategic Training on Enhancing Public Revenue and Expenditure Management organised by the Commission, he said the tempo should be sustained.

    Muruako said: “Notably, the Commission has made significant strides in enhancing the Independent Revenue of the Federal Government in recent years.

    “Through collaborative efforts with the Finance Committees in the two Houses of the National Assembly, we have seen remarkable growth.

    “In fact, Independent Revenue, which was previously not considered a significant revenue source, has consistently contributed an excess of N1 trillion to the Federal Government annual revenue in recent years.”

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    Addressing senior Federal Government officials at the training, he said: “We achieved this by working with MDAs like yours to improve remittances of Operating Surplus and Internally Generated Revenue, guided by FRC’s Operating Surplus Template and extant regulations.”

    “The people seated here today as participants are the ones that interfaced with our Commission and sister agencies to make this improvement happen. We are grateful.”

    Muruako reminded the participants of their responsibility to ensure that the management of the Federal Government’s finances aligns with the provisions of the Fiscal Responsibility Act and other relevant regulations.

    “Moreover, it remains your duty to ensure that the Federal Government budget is planned and executed in a timely, efficient, and effective manner, with a focus on achieving the expected outcomes and impacts. Your continued vigilance and dedication to compliance are therefore essential,” he said.

    The Executive Chairman further presented the Fiscal Responsibility Commission as a statutory body established by the Fiscal Responsibility Act of 2007, with the mandate to promote and enforce the nation’s economic objectives, ensure prudent management of the nation’s resources, and secure greater accountability and transparency in fiscal operations.

    “The Commission also diligently oversees and enforces regulations, boundaries, and responsibilities placed upon the public sector, particularly those managing the Federal Government’s public finance system. We are committed to fostering a culture of fiscal responsibility and sustainability in the public sector, as well as enhancing the quality and efficiency of public service delivery.

    “In conclusion, I extend my appreciation to the ADSC for their partnership in this training program. I commend the individual trainers and facilitators for their expertise and dedication, and, most importantly, I congratulate the participants for their selection and participation in this program.

    “I have no doubt that you will find the training useful and relevant. I implore your full participation, active engagement and attention to the details that will be shared during the training.  I also hope that you will share your insights and experiences with your colleagues back in the office.

    “I urge all persons and institutions involved in Nigeria’s public finance management to uphold the highest standards of professionalism, integrity, and accountability, ensuring that your work fully aligns with the provisions of the Fiscal Responsibility Act,” he said.

  • FRC frowns at FHA over non remittance of operating surplus

    Fiscal Responsibility Commission (FRC), is unhappy with the Federal Housing Authority (FHA) for not submitting its annual report and observing other FRC requirements.

    A statement from the FRC signed by Bede Ogueri Anyanwu, Acting Head, Strategic Communication Directorate, said the “Acting Chairman of Fiscal Responsibility Commission (FRC),  Victor Muruako frowned at the fact that FHA has not been submitting their annual audited account, receipts of their remittances, budgets, Medium Term Expenditure Framework, (MTEF) and operational strategic plan, thereby hampering prompt and accurate determination of operating surplus liabilities.”

    The Acting Chairman spoke at the Stakeholders meeting with the management of the FHA at the Commission’s Headquarters, in Asokoro, Abuja.

    Muruako pointed out that the independent revenue drive of the Federal Government is not encouraging and Federal Housing Authority has not been complying fully with the provisions of section 21, 22 and 23 of Fiscal Responsibility Act of 2007.

    Muruako implored them to update their Chief Executive about the Commission’s readiness to offer them training on the recently launched template on the calculation of Operating Surplus to improve compliance.

    In his remarks, the Head of Monitoring and Evaluation of FRC, Alhaji Ola Tijani pointed out that Federal Housing Authority should not pretend about compliance, but must show proof of prudence, accountability and transparency in financial reporting in order to be in line with the FRA 2007.

  • FG Loses N1tr to Non-Remittance of Operating Surpluses – FRC

    FG Loses N1tr to Non-Remittance of Operating Surpluses – FRC

    The Fiscal Responsibility Commission has raised alarm that the federal government may be losing over N1 trillion due to the non-remittance of operating surplus by revenue generating agencies.

    Acting Chairman of the commission Mr. Victor Muruako made this disclosure at the first edition of the Nigerian Economic Stakeholders Summit in Abuja Thursday.

    He said the agencies of government have perfected their art of defrauding the country through deliberate wrong computations, express diversion of funds, and application of wrong accounting standards.

    Muruako said the commission “will ensure that every kobo of government is well utilized. We have decided to monitor the payment of operating surpluses by revenue generating agencies into the CRF.

    However the commission he said has been able since 2009 to attract N367 billion into the Consolidated Revenue Fund (CRF) from operating surplus of revenue generating agencies.

    The Director, Monetary Policy Department of the Central Bank of Nigeria, Mr. Moses Tule in a paper presented at the event pleaded with the government to avoid the mistake of late passage of the 2016 budget stressing that with the budget starting about five months into the year, it would be difficult to ensure its full implementation.

    Tule said even if the government were to release the N6 trillion it budgeted for the year 2016, the economy he said, does not have the capacity to absorb such huge spending over a seven month period.

    Since the fund was planned to be utilized over a 12 months period, “any plan to release it within seven months would only worsen the level of inflation in the country.

    He added that this could only be effectively managed through fiscal and monetary coordination.

    The Minister of State for Budget and National Planning, Mrs. Zainab Ahmed who was represented by the Director, Macroeconomic Department in the budget and planning ministry, Mr Tunde Lawal said the federal government was “implementing a roadmap to stimulate investment into the solid mineral sector and plug revenue leakages in the sector.”

    The government she said “is also determined to set a three year deadline for the country to be self sufficient in refined petroleum products and become a net exporter.”

    To achieve this, she said the federal government would ensure the speedy passage of the Petroleum Industry.

    In order to allow for effective implementation of all programmes and projects contained in the 2016 budget, the minister said the monitoring and evaluation system is being repositioned.

    The Speaker of the House of Representatives, Yakubu Dogara who also spoke at the event said the House of Representatives would continue to provide strong legislative backing to the government to execute its programs, noting that the recommendations for the summit would assist in enriching the legislative agenda.

  • Govt, Reps fret over scrapping of Fiscal Responsibility Commission

    Govt, Reps fret over scrapping of Fiscal Responsibility Commission

    THE Federal Government and the House of Representatives are on collision course over the future of the Fiscal Responsibility Commission (FRC).

    It emerged yesterday that the federal government has concluded plans to scrap the Commission and subsume it under the Revenue Mobilization and Fiscal Allocation Commission (RMFAC).

    House of Representatives Committee on Finance however insisted that the purported scrapping of the agency by government remains a proposal, insisting  that, scrapping the FRC must go through a legislative process since it was a creation of an Act of the National Assembly.

    RMFAC Chairman, Elias Mbam, while presenting the 2015 budget of his agency, disclosed that added responsibility of merging FRC to RMFAC would require more budgetary allocation.

    He said: “I want to say that the white paper of the restructuring of parastatals of MDAs, generally gives additional assignments to the Commission because from that white paper, the Fiscal Responsibility Commission will be scrapped.

    “The process of winding up of that Commission has reached advance stage.

    “In fact today (yesterday), we met in my office for a technical session on how to absorb their buildings and personnel was concluded in my office this morning”.

    Mbam however noted that the process would be concluded when the White Paper is approved by the National Assembly.

    According to him, the implication was that Budget Office allocation of N3.29b for 2015 for RMFAC would be inadequate.

    He requested for N3.82b

    At this point, Chairman of the Committee, Abdulmumin Jibrin joked that the FRC do not have to be at the budget defense session since it has been scrapped.

    However in his presentation, FRC Acting Chairman, Victor  Muruako expressed fears over the recommendation of the governemnt White paper for the scrapping of the agency.

    He explained that the effect of the Commission on the Nigerian economy can not be qualified regarding financial discipline and prudence in Ministries, Departments and Agencies (MDA).

    He disclosed that FRC recovered N360b as Operating surplus  for six years from defaulting MDAs.

    He said: “Before this time,  we thought it was over for us, but being here again today I think there’s yet a little hope for us.

    “As public servants, we owe it as a duty to government to ensure that we follow up with the decision of the government.

    “However, we wish to intimate you that on our own, we strived to see how we can continue to thresh on and discharge our mandate until the repeal of the Act because we are conscious of the fact that the Commission was a creation of the Fiscal Responsibility Act 2007.

    “We have managed and will continue to see how we can manage until we hear the final hammer by the repeal of the Act.

    “It is on record as part of our achievements that we were able to recover over N360b  operating surplus from scheduled corporations in the last six years of our operation.

    “The funding to our operation stood at about N3.6b or 0.6 percent of the fund recovered,” he said.

    In his comments, Chairman of the Committee, Jibrin assured the Commission that the House would do all it could to intervene.

    According to him, the House has always been in the vanguard of strengthening the FRC and as such would not want to jeopardise it’s future.

    “Our Committee would not support  submerging FRC with RMFAC. We believe we should rather continue to empower it and give it more power to perform its functions.

    “We will continue to see how to convince government to rescind the scrapping

    “To us, the purported scrapping remain a proposal because FRC is a creation of an Act of the National Assembly,” he noted.

    The Finance Committee has also ordered the Accountant General of the Federation (AGF), Jonah Otunla to furnish it with the details of a recovered $30m from the country’s foreign missions.

    Otunla, while presenting the budget of N3.2b for 2015 which he complained was not  adequate told the Commission that $30m was recovered from foreign missions last year.

    The budget proposal provided no details which prompted the Committee’s request.