OAGF Seeks Legal Teeth For PFM Reforms, Treasury Operations
BY COBHAM NSA – In a bold move to enhance financial transparency and accountability in the nation’s public service, the Office of the Accountant General of the Federation (OAGF) is proposing a new bill to legally back the Public Finance Management (PFM) Reform initiatives and operations of the Federation’s Treasury.
The proposed legislation is against the backdrop of what the Accountant General of the Federation (AGF), Dr Oluwatoyin Madein labeled as obsolete and inadequate laws that can not support the Public Finance Management (PFM) Reforms in this digital time and age.
Speaking at the 2023 Federation Account Allocation Committee (FAAC) Retreat in Asaba, Delta State, Dr Madein specifically identified the challenge with the Finance Control and Management Act of 1958 which currently serves as the principal legislation in operation within the public financial sector.
A statement by the Director of Press, OAGF, Bawa Mokwa, quoted the Accountant General as saying that when passed into law, the Bill will repeal the Finance Control and Management Act 1958 and enact the “Public Finance Management Act” to provide a legal framework for the operations of the Treasury, as well as institutionalize the Public Finance Management (PFM) Reforms and regulate the management of public funds.
Presenting a paper on the Operations of the Federation Account, the AGF described the Federation Accounts Allocation Committee (FAAC) as the highest decision-making body in terms of revenue sharing, explaining that adequate checks and balances are in place to ensure accountability and transparency in the administration and disbursement of the Federation Account.
She though the Federation Account is maintained and operated by the OAGF, all the States and relevant federal agencies are duly represented in all the Institutions responsible for the administration and disbursement of the Account.
Regarding revenue accruals, Dr. Madein criticised the practice of cash collections by Revenue Agencies, noting that such arrangement promotes leakages and lack of accountability in revenue
Accordingly, she urged all revenue agencies to devise more efficient revenue collection strategies to curb leakages and promote transparency in the public finance management process.
