The Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, has commended the newly developed Nigerian Public Sector Governance Code (NPSGC).
Speaking at a stakeholder engagement organized by the Financial Reporting Council (FRCN), Muruako while praising the thoroughness of the document, however called for greater alignment with the Fiscal Responsibility Act (FRA) 2007. He highlighted areas he said that require further reinforcement to ensure adherence to fiscal discipline, transparency, and accountability.
Muruako noted that the NPSGC aligns with key fiscal governance principles, particularly in promoting corporate governance, which aligns with the FRA’s objectives of ensuring fiscal discipline, transparency, and accountability. Muruako called for explicit mention of the Fiscal Responsibility Act (FRA) 2007 to avoid contradictions or dilution of its provisions.
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 urged the Code to further strengthen budget execution, public debt management, and financial reporting to ensure efficient use of public funds.
While acknowledging the Code’s strengths, Muruako raised several concerns, including, the Code’s recommendation to restrict board membership to only two retired civil servants and three non-public sector members which he said is a bit 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.
He said 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.
Muruako 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.
Muruako recommended the inclusion of stringent debt management guidelines to prevent unsustainable public debt accumulation.
Muruako concluded by commending the Financial Reporting Council for its efforts in drafting the Nigerian Public Sector Governance Code, emphasizing that it is a positive step towards improving governance. However, he urged that the Code be strengthened to explicitly reinforce fiscal responsibility, accountability, and transparency, ensuring Nigeria’s public finance system remains efficient and sustainable.