FRC to Engage Banks, Others on Lending to Govts, Public Institutions

Ndubuisi Francis in Abuja

The Fiscal Responsibility Commission (FRC) is set for a stakeholders’ dialogue on how to implement sections of the Fiscal Responsibility Act, 2007 (FRA) relating to lending by banks to governments and public institutions in the federation.

The FRC is an agency saddled with the task to promote a transparent and accountable government financial management framework for Nigeria.

Its mandate includes ensuring that revenue-raising policies, resource allocation decisions, and debt management decisions are undertaken in a prudent, transparent and timely fashion as provided for in the law.

In a statement made available to THISDAY, the FRC spokesman, Bede Anyanwu said, “The Fiscal Responsibility Commission (FRC) has concluded preparations to hold a Stakeholder Dialogue on implementing sections of the Fiscal Responsibility Act that relate to lending by banks to governments and public institutions in the Federation.

“The event to be held in Lagos this weekend will bring together a diverse group of stakeholders including banking Institutions, government representatives, economists, academics and experts in fiscal governance.”

The Fiscal Responsibility Act 2007 (FRA), which is Nigeria’s foremost legal framework for the promotion, monitoring and enforcement of fiscal discipline and accountability in the management of public finances, stipulates that lending by banks to governments or their agencies in contravention of certain provisions of the Act shall be unlawful.

According to Anyanwu, “the Commission aims at using the stakeholder dialogue to refresh the attention of stakeholders to this provision of the Act and to engender stakeholder agreement on ways to enhance compliance, and thereby improve the nation’s debt management practices.”