By Nkechi Eze
Local Government Chairmen in Kaduna State have been cautioned against contracting loans or borrowing from banks and other financial institutions without first obtaining a Certificate of Proof of Compliance (POC) from the Fiscal Responsibility Commission (FRC), in line with the provisions of the Fiscal Responsibility Act (FRA) 2007.
The warning was issued by the Director of Legal Services, Investigation and Enforcement at the FRC, Barrister Charles Chukwuemeka Abana, while representing the Executive Chairman of the Commission, Victor Muruako, Esq., at a workshop organised by the Kaduna State Fiscal Responsibility Commission (KADSFRC) in collaboration with the Ministry for Local Government and Chieftaincy Affairs.
The workshop, tagged “KADSFREC 1.0,” was held at the Fifth Chukker Polo and Golf Resort, KM 2 Kaduna–Jos Road, Mararaban-Jos, Kaduna State, and carried the theme, “Strengthening Fiscal Responsibility and Public Financial Management Practices Across the 23 Local Government Areas of Kaduna State.”
According to a statement signed by the Director, Strategic Communication Directorate of the FRC, Mr. Bede Anyanwu, Barrister Abana reminded the council chairmen that Section 45 of the FRA 2007 makes it mandatory for all tiers of government to secure a POC from the Commission before accessing any form of loan.
He stressed that governments are only permitted under the law to borrow for capital expenditure and human development, including infrastructure projects, warning that lending by banks and financial institutions in violation of the Act is unlawful. He added that public officers who disregard these provisions expose themselves to serious legal consequences.
Barrister Abana strongly criticised the practice of spending public funds without due budgetary appropriation, describing it as “fiscal haram.” He cautioned council chairmen against disbursing public funds to random individuals and political loyalists, inflating payrolls with unverified names, or filling positions and incurring expenditures not captured in their approved budgets.
“Every kobo spent must have value for money. Public resources must be planned, budgeted for, properly appropriated and disbursed towards the execution of projects that positively impact the lives of the people,” he said.
He urged the local government leaders to embrace transparency, accountability and prudence in financial management, noting that their decisions have far-reaching implications for both present and future generations. Barrister Abana also called on the chairmen to take advantage of the Commission’s offer of technical assistance to help them develop and enact Fiscal Responsibility Bye-Laws that would entrench fiscal discipline and sustainability at the grassroots.
The FRC Director commended the Governor of Kaduna State, Senator Dr. Uba Sani, CON, FNIQS, for his consistent support for reforms aimed at strengthening transparency, accountability and prudent management of public funds across the state. He noted that the Governor’s commitment to sound financial governance has provided an enabling environment for institutions such as the Kaduna State Fiscal Responsibility Commission to function effectively.
He also praised the Executive Chairman of KADSFRC, Hon. Sani Rabiu Bako, FNIQS, RQS, for his visionary leadership and proactive efforts to deepen fiscal responsibility at the sub-national level, encouraging him to expand the initiative by organising similar workshops that would bring together Local Government Chairmen across the entire North-West region.
Earlier, in his welcome address, Hon. Sani Rabiu Bako described the workshop as a vital platform for strengthening public financial management at the grassroots. He applauded the collaboration between key accountability and anti-corruption agencies, including the Fiscal Responsibility Commission, Code of Conduct Bureau (CCB), Economic and Financial Crimes Commission (EFCC), Bureau of Public Procurement (BPP) and the Centre for Fiscal Transparency and Public Integrity.
According to him, the objective of the workshop is to educate financial managers and public office holders on the principles of value for money, transparency and accountability, and to ensure that fiscal responsibility messages cascade to the sub-national level where service delivery has the most direct impact on citizens.
He commended the Kaduna State Government for prioritising capacity building for public finance managers, stressing that sound public financial management remains the foundation of sustainable development, improved infrastructure, cleaner environments, quality education and overall socio-economic growth.
In his address declaring the workshop open, the Executive Governor of Kaduna State, Senator Dr. Uba Sani, condemned financial mismanagement and embezzlement of public funds, and called on all elected officials and political appointees to uphold the highest standards of integrity, accountability and transparency in the discharge of their responsibilities.
The Governor reaffirmed his administration’s commitment to institutional reforms, fiscal discipline and responsible governance, emphasising that public confidence can only be sustained when government resources are managed efficiently and in the best interest of the people.
Other participating agencies at the workshop presented technical papers on fiscal responsibility, ethical governance, procurement procedures and anti-corruption strategies, further underscoring the centrality of accountability and prudent management of public funds at all levels of government.
