The Office of the Accountant General of the Federation (OAGF) in Nigeria has announced the drafting of a bill aimed at providing legal backing to the ongoing Public Finance Management (PFM) Reform initiatives and enhancing the operations of the Treasury of the Federation. The move is seen as a critical step in modernizing and streamlining financial practices, as the existing Finance Control and Management Act of 1958 is considered outdated and insufficient to support contemporary PFM reforms. The new bill, once enacted into law, will replace the obsolete legislation and establish a legal framework for treasury operations, institutionalizing reforms and regulating the management of public funds.
Key Points:
- Outdated Legislation: The Finance Control and Management Act of 1958, currently governing financial operations, is deemed obsolete and inadequate for supporting modern PFM reforms in Nigeria.
- Legal Backing for Reforms: The forthcoming Public Finance Management Bill aims to provide legal support to ongoing reform initiatives and enhance the efficiency and transparency of treasury operations.
- Regulating Public Funds: The bill seeks to regulate the management of public funds, introducing a comprehensive legal framework that aligns with contemporary financial practices.
- Checks and Balances: The Accountant General of the Federation highlighted that the proposed legislation would ensure adequate checks and balances in revenue sharing, promoting accountability and transparency in the administration and disbursement of the Federation Account.
- Revenue Collection Efficiency: The AGF emphasized the need for Revenue Agencies to adopt efficient revenue collection strategies, discouraging the practice of cash transactions that could lead to revenue leakages.
Summary: Nigeria is taking significant steps towards modernizing its financial systems by introducing a bill to replace outdated legislation governing public finance management. The new legislation aims to provide a robust legal framework for treasury operations, supporting ongoing reforms and regulating the management of public funds. The move is crucial for enhancing transparency, efficiency, and accountability in financial practices, aligning Nigeria’s financial regulations with contemporary standards.
