FRC, CSJ Launch Second Fiscal Responsibility Index to Deepen Transparency in Public Sector

By Faith Anisiobi, The Sight News

The Fiscal Responsibility Commission (FRC), in collaboration with the Centre for Social Justice (CSJ) and with support from the Rule of Law and Anti-Corruption (RoLAC) Programme, has commenced the validation process for the second edition of the Fiscal Responsibility Index (FRI), aimed at strengthening transparency, accountability and fiscal discipline across Federal Ministries, Departments and Agencies (MDAs).

Speaking at the validation meeting in Abuja, Lead Director of the Centre for Social Justice, Eze Onyekwere described the initiative as the second phase of a comprehensive framework designed to assess and benchmark compliance with Nigeria’s fiscal governance laws, a statement by the Commission’s Spokesperson, Bede Ogueri Anyanwu noted.

According to him, the exercise is coming at a significant period as Nigeria prepares to mark the 20th anniversary of the Fiscal Responsibility Act next year. He noted that between 30 and 32 states have enacted Fiscal Responsibility Laws to strengthen fiscal governance and accountability.

Onyekpere emphasized the importance of continuity in public policies and legal frameworks, stressing that sustainable national development depends on adequate financial and human resource investment.

“We must invest not only money but also human capacity to make Nigeria a country where citizens can thrive and realise their aspirations rather than seeking opportunities abroad,” he said.

He explained that the Fiscal Responsibility Index provides an objective platform for evaluating the level of compliance of MDAs with the Fiscal Responsibility Act and serves as a mechanism for improving institutional performance through evidence-based assessment.

In his keynote address, Acting Chairman of the Fiscal Responsibility Commission, Barr. Charles Abana described the validation meeting as a critical milestone in Nigeria’s efforts to strengthen fiscal discipline, public accountability and transparency in the management of public resources.

Abana commended the Centre for Social Justice for sustaining its partnership with the Commission, noting that the inaugural edition of the Fiscal Responsibility Index recorded considerable success despite challenges related to funding and institutional support.

He explained that the Index was conceived as an innovative assessment tool to evaluate compliance by MDAs with the provisions of the Fiscal Responsibility Act, 2007, and other financial regulations guiding public expenditure management.

According to him, the first edition of the Index provided valuable insights into institutional compliance, encouraged healthy benchmarking among public institutions and demonstrated that transparency and accountability can be objectively measured and improved.

“The second edition builds upon lessons learned from the inaugural exercise. It incorporates stakeholder feedback, enhanced methodologies and refined indicators to ensure greater accuracy, objectivity and relevance,” Abana stated.

He added that the objective of the exercise is not merely to rank institutions but to strengthen governance systems, improve compliance levels and enhance public confidence in government financial management processes.

The Acting Chairman further disclosed that the Commission plans to institutionalise the Fiscal Responsibility Index as a regular assessment mechanism for continuous monitoring of fiscal governance outcomes across MDAs.

Delivering a presentation on the framework and methodology for the Index, a consultant from the Institute of Development Studies, University of Nigeria, Enugu Campus, Prof. Uzochukwu Amakom underscored the importance of sound fiscal policy in promoting sustainable economic growth and development.

He expressed concern over Nigeria’s rising debt profile, stressing that public borrowing must translate into tangible benefits and improved living standards for citizens.

Amakom identified key challenges affecting effective budget implementation in Nigeria, including conflicting regulations among stakeholders, inadequate executive and managerial capacity, weak fiscal discipline, poor financial management systems and ineffective management controls.

He also highlighted the importance of transparency and accountability initiatives such as quality-based budgeting, budget comprehensiveness and budget credibility as critical pillars for strengthening public financial management and governance outcomes.

Stakeholders at the meeting agreed that the Fiscal Responsibility Index remains an important instrument for promoting compliance, accountability, transparency and value-for-money in public expenditure management.

As Nigeria continues to face fiscal pressures and increasing developmental demands, stakeholders expressed optimism that the successful implementation of the second edition of the Fiscal Responsibility Index would provide a stronger framework for measuring institutional performance and advancing responsible fiscal governance across the public sector.

Questionnaires for the second Fiscal Responsibility Index were distributed to participating MDAs, with a one-month deadline for completion and submission to the Fiscal Responsibility Commission.

Organizers explained that the exercise is intended to promote accountability and help Chief Accounting Officers understand the implications of their actions on institutional performance and compliance.

They clarified that the assessment is not designed to indict any MDA, but rather to identify gaps, encourage transparency and drive reforms within the public sector.

The exercise, according to organizers, is fundamentally a fact-finding initiative aimed at strengthening systems and processes for improved fiscal responsibility and good governance.