‘ Blocking 90% of revenue leakages achievable with sufficient legislation’
STAKEHOLDERS have again stressed that the federal government could achieve 90 per cent success in lockage of revenue leakages if relevant sections of the Fiscal Responsibility Act ( FRA) 2007 are amended.
Recall that the act that established the Fiscal Responsibility Commission ( FRC) is aimed at ensuring that revenue- raising policies, resource allocation decisions and debt management decisions are undertaken in a prudent, transparent and timely fashion.
Section 2 of the Act compels any person or government institution to disclose information relating to public revenues and expenditures and cause an investigation into whether any provisions of the act have been violated
Several sections of the Act have been flouted mostly by ministries, departments and agencies ( MDAS) resulting in financial losses to the government.
Angered by the development, the FRC, in collaboration with civil society organisations and other stakeholders, had sponsored a bill for amendment to the 8th and 9th National Assembly.
In both cases, the bill could not reach the final stage of the lawmaking process. Speaking to The Guardian on the advantages of the bill if finally amended, the FRC Director of Legal Services, Charles Abana, said government would have achieved, at least, 90 per cent blockage to government revenue leakages every year.
He said: “Now that the bill is yet to be amended, the commission’s hands are tied. We go out for inspection of government projects; we come and we submit our recommendations to the Office of the Attorney- General, with punishment and sanctions recommended. We don’t have power to punish or prosecute in line with the provisions of the act. We only bark but cannot bite.
“But sincerely speaking, if the act is amended and we are given powers to prosecute and bite, I can assure you that the commission will meet its over N2 trillion yearly revenue target by government.”
According to Abana, but for the N1 trillion remitted to the consolidated revenue in 2022, the commission has consistently remitted a paltry of between N500 million and N600 million to the federation account yearly.
He listed other benefits the commission will derive from the amendments including harmonisation of staff salary structure, cleaning up some errors in the existing act, a five per cent benefit from the operating surplus and the ability to engage new staff.