Kaduna LG Chairmen Strong Advised to Obtain Proof of  Compliance Before Contractors Loans

Oru Leonard 

The Director of Legal Services, Investigation and Enforcement at the Fiscal Responsibility Commission (FRC), Barrister Charles Chukwuemeka Abana, has cautioned the twenty-three Local Government Chairmen in Kaduna State against borrowing or contracting loans from Banks and Financial Institutions without first obtaining a Certificate of Proof of Compliance (POC) from the Fiscal Responsibility Commission, as required under Section 45 of the Fiscal Responsibility Act (FRA) 2007.
Barrister Abana gave the advice while representing the Executive Chairman of the Fiscal Responsibility Commission, Victor Muruako, Esq., at the recently concluded workshop tagged “KADSFREC 1.0”, held at the Fifth Chukker Polo & Golf Resort, KM 2 Kaduna–Jos Road, Mararaban-Jos, Kaduna State.
The workshop was organised by the Kaduna State Fiscal Responsibility Commission (KADSFRC) in collaboration with the Ministry for Local Government and Chieftaincy Affairs, with the theme “Strengthening Fiscal Responsibility and Public Financial Management Practices Across the 23 Local Government Areas of Kaduna State.”
Barrister Abana further emphasized that Governments at all tiers can only borrow for capital expenditure and human development including infrastructural projects, warning that lending by Banks and Financial Institutions in contravention of the relevant sections of the Act is unlawful, stressing that non-compliance exposes public officers to serious legal consequences.
Barrister Abana strongly condemned the practice of spending public funds without due budgetary appropriation, describing such actions as “fiscal haram.” He warned Local Government Chairmen against doling out public funds to random individuals and political loyalists or inflating their payrolls with names of individuals not properly employed with defined work schedule or to fill vacant positions when such expenditures are not captured in thier approved budgets.
“Every kobo spent must have value for money. Public resources must be planned, budgeted for, properly appropriated and disbursed towards the execution of projects that positively impact the lives of the people,” he stated.
He called on Council chairmen to embrace transparency, accountability, and prudent financial management, noting that the decisions taken by public officers have far-reaching consequences on present and future generations. He urged them to take advantage of the Commission’s offer to provide technical assistance to enable them make adequate Fiscal Responsibility Bye-Laws in order to build a sustainable future anchored on fiscal discipline.
Barrister Abana also commended the Governor of Kaduna State, Senator Dr. Uba Sani, CON, FNIQS, for his consistent support of reforms aimed at strengthening transparency, accountability, and prudent management of public funds across the state. He noted that the Governor’s commitment to sound financial governance has created an enabling environment for institutions such as the Kaduna State Fiscal Responsibility Commission to thrive.
He further praised the Executive Chairman of the Kaduna State Fiscal Responsibility Commission, Hon. Sani Rabiu Bako, FNIQS, RQS, for his visionary leadership and proactive approach to deepening fiscal responsibility at the sub-national level. Barrister Abana encouraged him to expand the initiative by organising similar workshops that would bring together Local Government Chairmen across the entire North-West region.
Earlier in his welcome address, QS Sani Rabiu Bako described the workshop as a critical platform for strengthening public financial management at the grassroots. He applauded the collaboration between key anti-corruption and accountability agencies, including the Fiscal Responsibility Commission, Code of Conduct Bureau (CCB), Economic and Financial Crimes Commission (EFCC), Bureau of Public Procurement (BPP), and the Centre for Fiscal Transparency and Public Integrity.
According to him, the goal of the workshop was to educate financial managers and public office holders on the principles of value for money, transparency, and accountability, and to ensure that fiscal responsibility messages reach the sub-national level where service delivery directly affects citizens.
He commended the Kaduna State Government for prioritising capacity building for public finance managers, noting that sound public financial management remains the backbone of sustainable development, leading to improved infrastructure, cleaner environments, quality education, and overall socio-economic growth.
In his address to declare the workshop open, the Executive Governor of Kaduna State, Senator Dr. Uba Sani, strongly condemned financial mismanagement and embezzlement of public funds. He called on all elected officials and political appointees to uphold the highest standards of integrity, accountability, and transparency in the discharge of their duties.
The Governor reaffirmed his administration’s commitment to institutional reforms, fiscal discipline, and responsible governance, stressing that public trust can only be sustained when government resources are managed efficiently and in the best interest of the people.
Other participating agencies at the workshop presented technical papers on fiscal responsibility, ethical governance, procurement processes, and anti-corruption strategies, further reinforcing the importance of accountability and prudent management of public funds across all levels of government.

(FRC Media)