Critical Analysis of the Fiscal Responsibility Act of Nigeria 2007: an Overview
CRITICAL ANALYSIS OF THE FISCAL RESPONSIBILITY ACT OF NIGERIA 2007: AN OVERVIEW
BEING
ASSIGNMENT SUBMITTED ON PUBLIC FINANCE (BKF 624) (FIRST SEMESTER COURSE WORK)
BY
ALAJEKWU UDOKA BERNARD 2008 162 001
MSc PROGRAMME DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE SCHOOL OF POSTGRADUATE STUDIES ANAMBRA STATE UNIVERSITY
LECTURER: DR. EZEABASILI V. N.
OCTOBER, 2009
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ABSTRACT Fiscal Responsibility Act 2007 was designed to regulate and supervise the fiscal activities of public office holders in the country. This paper critically analyses the effectiveness and efficiency of the implementation of the Act; the machinery for implementation; the powers and tenor of the members of the Fiscal Responsibility Board; the appointment of members of the Board; Fiscal policy/activity uniformity in/among the various tiers of
government; the fiscal control on borrowing; the key features of the Fiscal Responsibility Act; the consequences of the Fiscal Responsibility Act; the protection of officeholders, among others. The paper hoped that Nigeria’s Fiscal Responsibility Act will strengthen the nation’s financial reporting and ensue better management of its resources. The paper then concluded that the FRA provided the much needed deterrent to stop public officers dipping their hands in the states till and then made some recommendations for improvement.
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Introduction Following the incessant misappropriation, mismanagement, and lack of stewardship and accountability in the nation’s public sector, the Fiscal Responsibility Bill was proposed for consideration by the President Obasanjo administration through the then Minister of Finance – Prof. Okonjo-Iwuala N. The Bill was passed into law in 2007 as the Fiscal Responsibility Act, 2007. The Fiscal Responsibility Act provides for a body known as the Fiscal Management Council that comprises the Fiscal Responsibility Council and the Governing Board. The Council is charged with the
BEING
ASSIGNMENT SUBMITTED ON PUBLIC FINANCE (BKF 624) (FIRST SEMESTER COURSE WORK)
BY
ALAJEKWU UDOKA BERNARD 2008 162 001
MSc PROGRAMME DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE SCHOOL OF POSTGRADUATE STUDIES ANAMBRA STATE UNIVERSITY
LECTURER: DR. EZEABASILI V. N.
OCTOBER, 2009
Page 1 of 19
ABSTRACT Fiscal Responsibility Act 2007 was designed to regulate and supervise the fiscal activities of public office holders in the country. This paper critically analyses the effectiveness and efficiency of the implementation of the Act; the machinery for implementation; the powers and tenor of the members of the Fiscal Responsibility Board; the appointment of members of the Board; Fiscal policy/activity uniformity in/among the various tiers of
government; the fiscal control on borrowing; the key features of the Fiscal Responsibility Act; the consequences of the Fiscal Responsibility Act; the protection of officeholders, among others. The paper hoped that Nigeria’s Fiscal Responsibility Act will strengthen the nation’s financial reporting and ensue better management of its resources. The paper then concluded that the FRA provided the much needed deterrent to stop public officers dipping their hands in the states till and then made some recommendations for improvement.
Page 2 of 19
Introduction Following the incessant misappropriation, mismanagement, and lack of stewardship and accountability in the nation’s public sector, the Fiscal Responsibility Bill was proposed for consideration by the President Obasanjo administration through the then Minister of Finance – Prof. Okonjo-Iwuala N. The Bill was passed into law in 2007 as the Fiscal Responsibility Act, 2007. The Fiscal Responsibility Act provides for a body known as the Fiscal Management Council that comprises the Fiscal Responsibility Council and the Governing Board. The Council is charged with the
References: Afemikhe, S. O. (2005). Budget Implementation and Value for Money: The Due Process Experience. Ibadan: Spectrum Books Ltd. Daily Independent(Lagos), (2009). Nigeria: The Fiscal Responsibility Disgrace. 15 September. http://allafrica.com/comments/list/aans/post/id/20090915 0578.html. FISCAL RESPONSIBILITY BILL: RISING HOPES IN THE HORIZON http://www.budgetmonitoring.org/Spotlights/2007/02/26/News11618/ http://www.africafront.com/news/136/group_urges_nigerain_government_to_en force_the_fra.html Nwanma, Vincent (2007). Fiscal Responsibility – Don’t Spend Money Unless You Have It. http://www.budgetmonitoring.org/Spotlights/2007/12/13/ News12271/ Page 19 of 19