The Federal Government of Nigeria has generated over N1.4 trillion in its Consolidated Revenue Fund (CRF) through the payment of operating surplus by Ministries, Departments and Agencies (MDAs) between 2007 and 2017.
Victor Murako, the Acting Chairman of the Fiscal Responsibility Commission (FRC), said that the government has only been able to generate the said amount since the inception of the commission after the Fiscal Responsibility Act of 2007 was promulgated.
The Fiscal Responsibility Act of 2007, was enacted to provide prudent management of the county’s resources, ensure long-term macro-economic stability of the nation’s economy, secure greater accountability and transparency in fiscal operations within the Medium Term
Fiscal Policy Framework, and the establishment of the Fiscal Responsibility Commission to ensure the promotion and enforcement of the nation’s economic objectives, and for related matters.
The Act requires listed agencies to pay 80 percent of their operating surpluses into the Consolidated Revenue Fund, while retaining 20 percent. The operating surplus is made up of revenues accruing to government agencies above what they are approved to spend at the beginning of the budget year.
In February, 2018, Muruako had said a total of 122 agencies were now required to pay operating surpluses annually into the Consolidated Revenue Fund Account of the Federal Government.
The Federal Government had added another 92 agencies to the original 30 list of agencies required to pay the operating surpluses into the Consolidated Revenue Fund.
The operating surplus, which is a component of value added and GDP, is the portion of income derived from production by incorporated enterprises that are earned by the capital factor.
The functions of the commission includes:
- Compel any person or Government institution to disclose information relating to public revenues and expenditure.
- Conduct investigation into whether any person has violated any provisions of this Act.
- If the Commission is satisfied that such a person has committed any punishable offence under this Act, the Commission shall forward a report of the investigation to the Attorney General of the Federation for possible prosecution.