ECNETNews Reports from Abuja
The Fiscal Responsibility Commission (FRC) is urging for a significant increase in revenue allocation to sub-national governments, emphasizing that direct financial resources could lead to more immediate benefits for citizens.
Victor Muruako, the Executive Chairman of the FRC, has called for enhanced fiscal sustainability across all levels of government in Nigeria, from the Federal Government to local administrations.
Muruako’s plea for fiscal sustainability coincides with ongoing efforts to boost financial accountability and governance throughout the country.
During the 5th National Treasury Workshop held in Abuja, he stressed the crucial role local governments play in generating revenue.
He recalled a period when essential services such as primary healthcare, education, and agriculture were effectively managed at the grassroots level, suggesting that empowered local governments could significantly improve revenue generation.
Muruako reiterated the need for increased financial allocations to sub-national governments, arguing that such direct funding would more effectively address community needs.
He also encouraged local governments to proactively engage with their communities to better understand their needs before formulating budgets, which in turn would drive internally generated revenue (IGR).
The FRC chairman underscored the importance of the Fiscal Responsibility Act of 2007, aimed at strengthening independent revenue sources, and urged stakeholders to utilize Section 51 of the Act to promote transparency in government operations.
Muruako also commended the fiscal reforms introduced by President Bola Tinubu, particularly in the area of tax policy, stating that these initiatives are expected to boost revenue generation at the state and local government tiers.
Key participants at the workshop included the Chairman of the Revenue Mobilisation Allocation & Fiscal Commission (RMFAC), the Accountant General of the Federation, and the Chairman of the State Commissioners Forum, all of whom engaged in meaningful discussions about revising the revenue allocation formula to enhance fiscal federalism and promote sub-national development.
This workshop was aimed at developing actionable solutions to Nigeria’s revenue challenges while fostering transparency, accountability, and efficiency in public financial management.
