Reports have indicated that the federal government has raked, in revenue, a record N1.959 trillion in June with the Federal Account Allocation Committee (FAAC) recently sharing a total sum of N907.054 billion with the Federal Government (N345.564 billion), States (N295.948 billion) and Local Government Areas (N218 billion).
ThisDay analysis of Central Bank of Nigeria’s figures also showed a substantial increase in money supply to an “unprecedented N64.36 trillion last month, marking a significant 31.62 per cent year-on-year (YoY) increase from its previous value of N48.9 trillion in June 2022.”
While these are considered positive economic indicators, inflation has edged higher to 22.79 percent from 22.41 percent in May within same period, weakening the purchasing power of Nigerians, amidst the general high cost of living. Life has become unbearable for many households following the removal of fuel subsidies and the recent increase in fuel pumps from N197 to N617.
Amidst public outcry, the government has decided to obtain $800 million in loan from the World Bank to cushion the impact of the removal of fuel subsidies, with a recent decision in this regard suggesting that state governors are to spearhead the distribution of N8000 monthly to households over the next six months. This decision has sparked concerns, given the distrust citizens have with governance at the subnational level.
First, the Center wishes to welcome the revenue jump into the federation account after removing subsidy and floating of the naira. However, it is disturbing that the government has not devised measures to monitor its expenditure to forestall the habitual abuse of government resources. We recall that the immediate past administration of President Muhammadu Buhari launched the “Open Treasury Portal” where the Office of the Accountant General of the Federation (OAGF) is mandated to publish payments of at least N10 million, while all Ministries, Department and Agencies of Government (MDAs) are equally expected to publish payments above N5 million made out of all public funds under their purview. This initiative was novel and intended to promote transparency through the timely disclosure of financial information to civil society organizations and the public at large.
However, in their characteristic manner, the OAGF and MDAs flout this policy, and a visit to the portal shows that the OAGF and MDAs have since abandoned the site. We are therefore calling on President Bola Ahmed Tinubu administration to revisit the open treasury policy and issue an executive order that will mandate the treasury and all public institutions to disclose details of their spending as specified in the policy.
Also, we are calling on state governments to borrow a leaf from the open treasury portal policy of the federal government, and entrench culture of transparency and accountability in the administration of state’s resources. While we hoped for the political will that will grant financial and administrative autonomy to the local government, after a bill that sought to “abrogate the state-local government joint account…” suffered a setback, state governors must put measures in place that will promote openness in how local government resources are utilized.
As Nigerians endure the pains of the removal of fuel subsidy and other reforms, transparency and accountability must be seen in the day-to-day running of governance.
Signed:
Victor Agi
Public Relations Lead