AGF Proposes Bill to Revolutionize Public Finance Management
By Patience Ikpeme
The Accountant General of the Federation (AGF) Dr. Oluwatoyin Madein has unveiled plans to introduce legislation that would supplant the outdated Finance Control and Management Act of 1958.
This move aims to modernize and adequately bolster the support structures for the dynamic Public Finance Management (PFM) Reforms.
Dr. Madein made this disclosure at the 2023 Federation Account Allocation Committee (FAAC) Retreat held in Asaba, Delta State.
She eemphasized that the envisioned Bill, once enacted, will not only revoke the archaic Finance Control and Management Act 1958 but also institute the Public Finance Management Bill. This novel legislation will establish a robust legal framework governing Treasury operations, institutionalize the ongoing PFM Reforms, and regulate the management of public funds, ensuring greater efficiency and accountability.
Speaking at the event where she presented insights into the operations of the Federation Account, Dr. Madein highlighted the pivotal role of the Federation Accounts Allocation Committee (FAAC) as the apex authority responsible for revenue allocation. She underscored the implementation of stringent checks and balances to uphold transparency and accountability in the administration and allocation of funds from the Federation Account.
The AGF emphasized that while the Office of the Accountant-General of the Federation oversees the maintenance and functioning of the Federation Account, representation from all States and pertinent Federal Agencies is integral to the institutions managing the distribution of funds from the account.
Addressing concerns over revenue collection methods, Dr. Madein expressed apprehension regarding the prevalent practice of revenue collection in cash by Revenue Agencies, citing its propensity to foster revenue leakages. She urged Revenue Agencies to devise more efficient strategies for revenue collection to mitigate such leaks and enhance financial integrity.
This groundbreaking legislative initiative spearheaded by the OAGF signifies a pivotal step toward enhancing the transparency, efficiency, and accountability of public funds management, ushering in a new era of responsible financial governance in the Federation.
