Stop Borrowing Without Federal Approval, FRC Warns LG Chairmen
By Patience Ikpeme
The Federal Government has issued a strong warning to states and local governments across Nigeria to stop taking loans from banks without getting a “Certificate of Proof of Compliance” from the Fiscal Responsibility Commission (FRC).
According to the government, Section 45 of the Fiscal Responsibility Act (FRA) 2007 makes it mandatory for any government body to get this clearance before approaching financial institutions for money.
This warning was delivered specifically to the 23 Local Government Chairmen in Kaduna State by Barrister Charles Chukwuemeka Abana, who is the Director of Legal Services, Investigation, and Enforcement at the FRC.
He spoke on behalf of the FRC Executive Chairman, Victor Muruako, during a workshop organized to improve how public money is managed in the state.
Barrister Abana made it clear that governments are only allowed to borrow money for big projects like building roads, schools, and hospitals, or for programmes that develop human skills. He noted that any bank or financial institution that lends money to a government body without following these rules is acting against the law.
He also pointed out that public officers who ignore these rules are putting themselves at risk of serious legal trouble.
While speaking at the event, Barrister Abana spoke out against the habit of spending public funds that were not planned for in the official budget. He described such illegal spending as “fiscal haram.”
“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,” Abana said.
He told the Council Chairmen to stop giving out public money to random people or political supporters. He also warned them against “ghost workers” or putting names of people on the payroll who do not have real jobs or offices, especially when such payments are not in the approved budget.
Abana asked the chairmen to be open and honest with how they handle money, noting that their actions today will affect both the people living now and future generations. He offered the help of the FRC to assist local governments in making their own laws that will help them manage money better.
The Governor of Kaduna State, Senator Uba Sani, who opened the workshop, expressed his strong dislike for the mismanagement and stealing of public funds. He told all elected officials and appointees that they must work with integrity and be accountable to the people.
Governor Sani said that his administration is dedicated to making sure the government is run responsibly. He mentioned that the people will only trust the government if they see that public resources are used efficiently and for the good of everyone.
Earlier, the Executive Chairman of the Kaduna State Fiscal Responsibility Commission, Sani Rabiu Bako, explained that the workshop was organized to teach those in charge of money how to be transparent. He said that when public money is managed well, it leads to better schools, cleaner environments, and more development for the people at the grassroots.
The event saw several agencies, including the EFCC, the Code of Conduct Bureau, and the Bureau of Public Procurement, come together to teach local officials how to stay away from corruption and follow the right steps in spending government money.
