The House of Representatives has successfully passed the second reading of consolidated legislation aimed at repealing the Fiscal Responsibility Act of 2007. This proposed initiative seeks to introduce a revised Fiscal Responsibility Act for 2024, focusing on responsible management of the nation’s resources, enhancing macroeconomic stability, and promoting accountability and transparency in fiscal operations.
The legislation, sponsored by Deputy Speaker Rt. Hon. Benjamin Kalu and six other lawmakers, is designed to address existing gaps in the current framework and strengthen the management of financial resources.
During the debate on the bill's general principles, Hon. Marcus Onobun articulated the objectives of the new legislation, stating that it aims to equip the Fiscal Responsibility Commission (FRC) with the necessary tools for effective enforcement and enhanced revenue generation.
"I am honoured to lead the debate on these important consolidated Bills, which seek to amend and ultimately repeal the Fiscal Responsibility Act, No. 31 of 2007, and enact the Fiscal Responsibility Act, 2024," Onobun explained. He emphasized that the new legislation would ensure prudent management of resources, secure long-term macroeconomic stability, and establish a framework for accountability and transparency in fiscal operations.
Onobun highlighted that the original Fiscal Responsibility Act, in operation for over 15 years, contains several loopholes that have hindered its effectiveness. He noted that the current Act consists of 57 sections and has undergone numerous amendments, resulting in the inclusion of additional Corporations and Government-Owned Enterprises (GOEs), which now total 68