The Fiscal Responsibility Commission (FRC), in collaboration with the Centre for Social Justice (CSJ) and supported by the Rule of Law and Anti-Corruption (RoLAC) Programme, has commenced the validation process for the Second Edition of the Fiscal Responsibility Index (FRI).
FRI is a strategic tool designed to assess and benchmark the compliance of Federal Ministries, Departments and Agencies (MDAs) with Nigeria’s fiscal governance framework, FRC announced in a statement issued by the Deputy Director, Strategic Communications
Department, Bede Ogueri Anyanwu.
Speaking at the validation meeting held in Abuja, Lead Director of the Centre for Social Justice, Eze Onyekpere, noted that the initiative marks the second phase of a comprehensive framework and methodology aimed at measuring fiscal responsibility across federal institutions.
According to him, the exercise comes at a significant period as Nigeria approaches the 20th anniversary of the Fiscal Responsibility Act by next year. He observed that approximately 30 to 32 states have enacted Fiscal Responsibility Laws to strengthen fiscal governance and accountability.
Onyekpere stressed the need for continuity in public policies and legal frameworks, emphasising that sustainable development can only be achieved when adequate resources—both financial and human—are committed to implementing sound policies.
“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 assessing the level of compliance of MDAs with the Fiscal Responsibility Act and serves as a mechanism for improving institutional performance through evidence-based evaluation.
In his keynote address, Acting Chairman of the Fiscal Responsibility Commission, Charles Chukwuemeka Abana, described the validation meeting as a critical milestone in Nigeria’s efforts to deepen fiscal discipline, strengthen public accountability, and enhance transparency in the management of public resources.
Abana commended the Centre for Social Justice for its continued partnership with the Commission, noting that the inaugural edition of the Fiscal Responsibility Index recorded significant success despite challenges associated with funding and institutional support.
He explained that the Fiscal Responsibility Index was conceived as an innovative assessment tool to evaluate compliance by MDAs with the provisions of the Fiscal Responsibility Act, 2007, and other extant financial regulations governing 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 emphasised that the purpose 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 intends to institutionalise the Fiscal Responsibility Index as a regular assessment mechanism to facilitate continuous monitoring and measurement of fiscal governance outcomes across MDAs.
Delivering a presentation on the framework and methodology for the Fiscal Responsibility Index, Ugochukwu Amakom, a consultant from the Institute of Development Studies, University of Nigeria, Enugu Campus, underscored the importance of sound fiscal policy in promoting sustainable economic growth and development.
The professor expressed concern over Nigeria’s rising debt profile, stressing that public borrowing must translate into tangible benefits and improved living standards for citizens.
He identified several challenges undermining 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.
Professor Amakom also highlighted the importance of transparency and accountability initiatives such as quality-based budgeting, budget comprehensiveness, and budget credibility as essential pillars for strengthening public financial management and improving governance outcomes.
Stakeholders at the meeting agreed that the Fiscal Responsibility Index remains a vital instrument for promoting compliance, accountability, transparency, and value-for-money in public expenditure management.
As Nigeria continues to grapple with fiscal pressures and increasing developmental demands, the successful implementation of the second edition of the Fiscal Responsibility Index is expected to provide a robust framework for measuring institutional performance and advancing responsible fiscal governance across the public sector.
The questionnaire for the second Fiscal Responsibility Index was distributed to all Ministries, Departments, and Agencies (MDAs) present, with a one-month timeline for completion and submission to the Fiscal Responsibility Commission.
The exercise is designed to promote accountability and provide Chief Accounting Officers with an opportunity to appreciate the implications of their actions on institutional performance and compliance.
It is important to emphasise that the assessment is not intended as an indictment of any MDA. Rather, it serves as a constructive tool for identifying gaps, encouraging transparency, and driving positive reforms within the public sector.
The exercise is fundamentally a fact-finding mission aimed at strengthening systems and processes for improved fiscal responsibility and good governance.
