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

Oru Leonard 

The Fiscal Responsibility Commission (FRC), in partnership 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), a key assessment tool aimed at strengthening fiscal discipline, transparency and accountability across Nigeria’s federal public institutions.

The validation meeting, held in Abuja, brought together stakeholders to review the framework and methodology for the new edition of the Index, which evaluates the level of compliance of Federal Ministries, Departments and Agencies (MDAs) with the provisions of the Fiscal Responsibility Act and other public financial management regulations.

Speaking at the event, the Lead Director of the Centre for Social Justice, Eze Onyekpere, described the exercise as an important milestone in the country’s fiscal governance journey, particularly as Nigeria approaches the 20th anniversary of the Fiscal Responsibility Act next year.
Onyekpere noted that between 30 and 32 states have enacted Fiscal Responsibility Laws, reflecting growing efforts to institutionalize transparency and accountability in public finance management. He stressed the importance of sustaining public policies and legal frameworks through adequate financial and human resource investments.

According to him, the Fiscal Responsibility Index provides an objective basis for measuring compliance among government institutions and supports evidence-based reforms that can improve institutional performance and governance outcomes.

In his keynote address, Acting Chairman of the Fiscal Responsibility Commission, Charles Chukwuemeka Abana, described the validation meeting as a significant step towards strengthening fiscal discipline and enhancing public trust in government financial management.

Abana commended CSJ for its continued collaboration with the Commission, noting that despite funding and institutional challenges, the inaugural edition of the Fiscal Responsibility Index achieved notable success in promoting accountability and transparency among public institutions.

He explained that the Index was developed as an innovative tool to assess how well MDAs comply with the Fiscal Responsibility Act, 2007, and other relevant financial regulations governing public expenditure. “The first edition generated valuable insights into institutional compliance, encouraged healthy competition among MDAs and demonstrated that transparency and accountability can be objectively measured and improved,” he said.

Abana added that the second edition incorporates lessons from the initial exercise, including stakeholder feedback, improved methodologies and refined performance indicators aimed at enhancing accuracy, objectivity and relevance.

He emphasized that the initiative is not intended to merely rank institutions but to strengthen governance systems, improve compliance levels and boost public confidence in the management of public resources.

The Acting Chairman further disclosed plans by the Commission to institutionalize the Fiscal Responsibility Index as a recurring assessment mechanism for monitoring fiscal governance performance across federal institutions.

Also speaking at the event, Professor Ugochukwu Amakom, a consultant from the Institute of Development Studies, University of Nigeria, Enugu Campus, highlighted the critical role of sound fiscal policy in driving sustainable economic growth and development.

Amakom expressed concern over Nigeria’s rising debt profile, stressing that public borrowing should translate into tangible developmental outcomes and improved living standards for citizens.

He identified key obstacles to effective budget implementation, including conflicting regulations, inadequate managerial capacity, weak fiscal discipline, poor financial management systems and ineffective control mechanisms.

The professor also underscored the need for quality-based budgeting, budget comprehensiveness and budget credibility as essential components of a transparent and accountable public financial management system.

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

As part of the exercise, questionnaires for the second edition of the Index were distributed to participating MDAs, with a one-month deadline for completion and submission to the Fiscal Responsibility Commission.

Officials clarified that the assessment is not designed to indict any institution but rather to identify gaps, encourage reforms and strengthen systems and processes that promote fiscal responsibility and good governance.

With increasing fiscal pressures and growing development demands, stakeholders expressed optimism that the successful implementation of the second edition of the Fiscal Responsibility Index will provide a stronger framework for measuring institutional performance and advancing responsible fiscal governance across Nigeria’s public sector.