AGF Seeks Legal Framework for Public Finance Reforms, Treasury Operation

•Kicks against cash collection by agencies

James Emejo in Abuja

The Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein, has said the office was drafting a bill to give legal backing to the Public Finance Management (PFM) reform initiatives and the operations of the federation treasury.

Speaking at the 2023 Federation Account Allocation Committee (FAAC) Retreat in Asaba, Delta State, the AGF noted that Finance Control and Management Act of 1958 which is currently the principal legislation in operation, had become obsolete and inadequate to support (PFM) reforms. 

She said when passed into law, the bill would repeal the Finance Control and Management Act 1958 and enact the Public Finance Management Bill which would provide legal framework for the operations of the treasury, institutionalise the public finance reforms, and regulate the management of public funds.

Madein, who presented a paper on the Operations of the Federation Account, said the Federation Accounts Allocation Committee (FAAC) remained the highest decision-making body in terms of revenue sharing and that adequate checks and balances have been put in place to ensure accountability and transparency in the administration and disbursement of the federation account.

She explained that although the federation account was maintained and operated by the Office of the Accountant-General of the Federation, all the states and relevant federal agencies are duly represented in all the institutions that are responsible for the administration and disbursement of the federation account.

On revenue collection, Madein decried revenue collection in cash by revenue agencies, stating that this practice promotes leakages in revenue collection.

In a statement issued by the Director of Press, OAGF, Bawa Mokwa, the AGF, therefore, advised revenue agencies to devise efficient revenue collection strategies to forestall leakages.