Is the Federal Government really trth ful about the fuel price hike and its effect on our foreign exchange or is it just a scam?

The federal government has vowed to take steps to address the issue of banks lending money to state governments without adhering to the provisions of the Fiscal Responsibility Act (FRA). Additionally, the government has directed the Fiscal Responsibility Commission (FRC) to provide increased technical support to local government councils in line with recent developments granting these councils financial autonomy. These steps are in response to two key events. First, the Supreme Court’s recent ruling that granted financial autonomy to local governments, ensuring they manage their finances independently from state governments. Second, the federal government is determined to avoid any future embarrassment following the threat by a Chinese company to seize national assets after a state government failed to fulfill its financial obligations in a transaction. Speaking at the National Summit of Fiscal Responsibility yesterday in Abuja, Chairman, Fiscal Responsibility Commission (FRC), Barrister Victor Muruako, expressed deep concern over the role banks play in violating the provisions of the Fiscal Responsibility Act. He noted that banks have been aiding state governments in circumventing the law, particularly with respect to borrowing. Muruako cited Section 44.1 of the Fiscal Responsibility Act, which mandates that any government or its agencies intending to borrow funds must present a detailed cost-benefit analysis of the proposed borrowing. This analysis should outline the economic and social benefits of the borrowing project. Furthermore, banks and financial institutions are required to ensure that governments comply with these provisions before loans are approved. “We are witnessing a troubling decline in accountability,” Muruako remarked. “In one instance, a state government’s secretary simply signed a declaration claiming compliance with the Act, which then allowed the government to proceed with borrowing. This is deeply alarming.” He went on to criticize banks for accepting such documents, noting that financial institutions have made it convenient to approve loans without thoroughly verifying compliance with the law. “We have reached out to banks and carried out extensive sensitisation efforts, but it is clear that more needs to be done. We cannot afford to remain silent any longer. This is a matter of national urgency,” Muruako said. The FRC Chairman also revealed instances where state fiscal responsibility commissions exceeded their authority by approving loans intended for federal purposes. “This is not the intent of the Act, nor is it in line with the Constitution,” Muruako emphasized, adding that such practices undermine the fiscal responsibility framework. Muruako called for greater accountability from all stakeholders involved in government borrowing, stating that “if we are serious about fiscal discipline, we need to respect the law or repeal it if it’s no longer desired.” Also addressing the summit, Senator George Akume

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