The Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, has called for increased revenue allocation to the local government areas, arguing that direct financial resources available to them would have a more tangible impact on citizens.
While calling for fiscal sustainability from the federal government down to the local government level, the FRC boss also urged local governments to engage with their communities to understand their needs before drafting budgets, as this would help drive internally generated revenue (IGR).
Murako who was speaking at the ongoing 5th Edition of the National Treasury Workshop, organized by the Office of the Accountant General of the Federation, in Abuja, emphasized the importance of local governments in revenue generation.
He noted that if local governments function effectively, they can generate more revenue, recalling a time when essential services such as primary healthcare, education, and agriculture were efficiently managed at the grassroots level.
The FRC chairman highlighted the significance of the Fiscal Responsibility Act 2007, which was designed to strengthen independent revenue sources. He encouraged participants to leverage Section 51 of the Act to question any lack of transparency in government activities.
Muruako also praised President Bola Tinubu’s fiscal reforms, particularly in tax policy, stating that such measures would enhance revenue generation at the state and local government levels.
The said that fiscal sustainability aligns with ongoing efforts to improve financial accountability and governance across all tiers of government in Nigeria.
Other discussants at the workshop including Chairman, Revenue Mobilization Allocation & Fiscal Commission (RMFAC), Dr. Mohammed Shehu as well as the Accountant General of the Federation, Dr. Oluwatoyin Madein, engaged in an in-depth discussions on revising the revenue allocation formula to enhance fiscal federalism and promote development at sub-national levels. The workshop aims to provide actionable solutions to Nigeria’s revenue challenges while fostering transparency, accountability, and efficiency in public finance management.