In a significant move towards modernizing financial governance, the federal government has announced plans to introduce a Bill that will provide legal backing to the Public Finance Management (PFM) Reform initiatives and streamline the operations of the Treasury of the Federation. Dr. Oluwatoyin Madein, the Accountant General of the Federation (AGF), disclosed this development at the 2023 Federation Account Allocation Committee (FAAC) Retreat held in Asaba, Delta State.
Currently, the Finance Control and Management Act of 1958 serves as the primary legislation governing financial operations. However, Dr. Madein highlighted that this outdated law has become insufficient to support the comprehensive Public Finance Management (PFM) Reforms.
To address this, the proposed Bill, once enacted into law, will supersede the Finance Control and Management Act of 1958 and establish the Public Finance Management Bill.
This new legislation aims to create a robust legal framework for the Treasury’s operations, institutionalize the PFM Reforms, and regulate the management of public funds.
During her presentation on the Operations of the Federation Account, the AGF emphasized the necessity of updating the legal framework to align with contemporary financial practices and governance standards. The envisioned Bill is expected to enhance accountability, transparency, and efficiency in the management and disbursement of public funds.
Dr. Madein underscored the pivotal role of the Federation Accounts Allocation Committee (FAAC) as the highest decision-making body for revenue sharing. She assured that the proposed legal framework would incorporate adequate checks and balances to uphold accountability and transparency in the administration of the Federation Account. This move reflects the government’s commitment to modernize financial systems, strengthen regulatory frameworks, and ensure responsible management of public resources.
As the nation progresses towards these reforms, stakeholders anticipate a more resilient financial governance structure that aligns with international best practices and fosters economic stability and growth. The announcement at the FAAC Retreat marks a crucial step in the ongoing efforts to enhance Nigeria’s financial management landscape.
