From Ndubuisi Orji, Abuja
The House of Representatives has passed for second reading a bill seeking to repeal the Fiscal Responsibility Act (FRA) 2007 and reenact the FRA 2024.
The bill, which is sponsored by the deputy speaker, Benjamin Kalu and six others, according to the sponsors is intended to provide for prudent management of the nation’s resources and ensure long term macro-economic stability amongst others.
One of the sponsors, Marcus Onobun, while leading debate, on the proposed legislation, said it is aimed addressing loopholes in the existing framework and equip the Fiscal Responsibility Commission (FRC) with the tools necessary for effective enforcement and revenue generation.
Onobun argued that owing to the present economic reality in the country, it has become imperative, to reposition and strengthen the structure, functionality and effectiveness of the FRC .
According to him, “the Fiscal Responsibility Act, 2007, which has been in operation for over one and half decade now, has been observed and found to contain certain loopholes and weaknesses which have hampered its effective and efficient operation.
“It is important to note that the extant Fiscal Responsibility Act of 2007 comprise 57 sections, structured into 14 Parts with one Schedule. The Act lists Corporations and Government-Owned Enterprises (GOEs) directly covered by the Act.
“Between the time of enactment and now, many other agencies have been added to or removed from the list by pursuant to reviews undertaken by Ministers of Finance therefore bringing the total to 68 Corporations and GOEs. These additions have necessitated the review of over 47 sections of the extant Act.”
The lawmaker, further noted that “again, the contemplated review of the extant Act, proposes a review of the powers of the Commission under section 2. This Bill seeks to expand the powers of the Commission, to among other proposed powers include conferring the Commission with direct prosecutorial powers.
“This will greatly enhance the powers of the Commission to effectively enforce the provisions of the Act, especially in collaboration with anti-corruption agencies. It is important to note that without the contemplated prosecutorial powers, the Commission remains a mere toothless bull dog.”