By Nkechi Eze
The Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako Esq, has applauded the newly developed Nigerian Public Sector Governance Code (NPSGC) at a stakeholder engagement event hosted by the Financial Reporting Council (FRCN).
While commending the document’s comprehensiveness, Muruako stressed the need for greater alignment with the Fiscal Responsibility Act (FRA) 2007 and identified areas requiring enhancement to ensure robust fiscal discipline, transparency, and accountability.
A statement signed and made available to journalists by the Head, Strategic Communications, Bede Ogueri Anyanwu states; he noted that the NPSGC aligns with key fiscal governance principles, particularly in: The Code promotes corporate governance, which aligns with the FRA’s objectives of ensuring fiscal discipline, transparency, and accountability.
However, Muruako called for explicit mention of the Fiscal Responsibility Act (FRA) 2007 to avoid contradictions or dilution of its provisions.
According to him, “the Code’s focus on improving governance and management of public sector entities resonates with the FRA’s mandate to enhance economic objectives, as stated in Section 16 of the 1999 Constitution.
“The inclusion of transparency and disclosure principles aligns with FRA’s emphasis on public access to fiscal information and decision-making.”
Muruako emphasized the need for the Code to enhance its budget execution, public debt management, and financial reporting capabilities to guarantee the effective utilization of public funds. Although acknowledging the Code’s existing strengths, Muruako expressed several concerns that necessitate attention.
The Code’s recommendation to restrict board membership to only two retired civil servants and three non-public sector members was seen as too rigid. He also questioned the requirement for specific professional backgrounds for board secretaries and independent non-executive members.
The requirement that a retired head of the agency should serve as chairman, if no supervising ministry exists, was deemed unnecessary given Nigeria’s appointment laws.
The delegation of remuneration oversight to Governing Bodies could be impractical, as these matters involve multiple government agencies, including the National Salaries, Income and Wages Commission.
The FRC boss stressed the need for stronger mechanisms to protect whistleblowers from retaliation and ensure their concerns are properly investigated.
He advocated for provisions that require disclosure of revenue sources and utilization, as well as the mandatory use of cost-benefit analysis for public sector projects.
He further recommended the inclusion of stringent debt management guidelines to prevent unsustainable public debt accumulation.
Muruako applauded the Financial Reporting Council’s efforts in developing the Nigerian Public Sector Governance Code, acknowledging it as a significant step towards enhanced governance. However, he emphasized the need to fortify the Code, specifically to reinforce fiscal responsibility, accountability, and transparency. This strengthening would ensure Nigeria’s public finance system remains efficient, sustainable, and effective in serving the nation’s interests.
