The federal government of Nigeria has announced its intention to introduce a bill that will provide legal backing to the ongoing Public Finance Management (PFM) Reform initiatives and the operations of the Treasury of the Federation. Dr. Oluwatoyin Madein, the Accountant General of the Federation (AGF), disclosed this at the 2023 Federation Account Allocation Committee (FAAC) Retreat in Asaba, Delta State.
The current principal legislation governing finance operations, the Finance Control and Management Act of 1958, is deemed obsolete and inadequate to support the ongoing PFM Reforms. The proposed bill, when passed into law, will repeal the Finance Control and Management Act 1958 and enact the Public Finance Management Bill. This new legislation aims to establish a comprehensive legal framework for the operations of the Treasury, institutionalize the PFM Reforms, and regulate the management of public funds.
During the FAAC Retreat, AGF Madein emphasized the critical role of the Federation Accounts Allocation Committee as the highest decision-making body for revenue sharing. She assured participants that adequate checks and balances have been implemented to ensure accountability and transparency in the administration and disbursement of the Federation Account.
This legislative initiative reflects the government’s commitment to modernizing financial management practices, enhancing transparency, and ensuring accountability in handling public funds. The new legal framework is expected to align with global best practices, providing a solid foundation for the ongoing efforts to reform and strengthen financial systems in Nigeria.
