The Fiscal Responsibility Law should not merely regulate public finance; it should strengthen the social contract between government and citizens by guaranteeing transparency, enabling public participation, protecting oversight institutions and ensuring that decisions regarding public resources remain subject to democratic checks and balances.
A civil society organisation, Policy Alert, has asked the Akwa Ibom State House of Assembly to review certain provisions in the proposed Fiscal Responsibility Bill, citing concerns over the potential for excessive executive powers and transparency gaps.
The bill seeks to repeal the existing law codified as Volume III, Cap 56 of the Laws of Akwa Ibom State 2022, and was introduced to the Akwa Ibom State House of Assembly on June 2. It scaled its second reading on June 9 and was referred to the House of Assembly Committee on Appropriation and Finance on the same day.
Presenting a memorandum during the public hearing on the bill held on June 17, Policy Alert commended lawmakers for seeking to modernise the state’s fiscal governance framework, but cautioned that several provisions require significant refinement to achieve the law’s stated objectives.
One of the major concerns raised by Policy Alert relates to section 36 of the bill, which empowers the Governor to approve budget virements. According to the organisation, this provision grants discretionary authority that could allow the executive to alter spending priorities approved by the legislature without adequate scrutiny.
Section 39(2) of the bill requires quarterly publication of budget implementation reports, but Policy Alert noted that this provision focuses on deadlines without specifying the level of detail that must be disclosed.
The organisation argued that government agencies could technically comply with the law by publishing brief summary reports that provide little information on project implementation, procurement activities or sectoral performance.
Policy Alert recommended that the law should instead require mandatory project-level disclosures, citizen-friendly budget performance reports and sanctions for agencies that fail to meet reporting standards.
The organisation also praised certain provisions in the bill that it described as progressive and worthy of retention, including section 53(5), which guarantees citizens’ right to fiscal information, and section 58(1), which grants any indigene of Akwa Ibom State legal standing to challenge violations of the law in court.
However, Policy Alert questioned the independence of the proposed Fiscal Responsibility Board, noting that the Governor retains significant powers over appointments and removals.
The organisation called for legislative confirmation of board members, stronger whistleblower protections, enhanced sanctions for fiscal misconduct, greater transparency around public borrowing and stronger links between fiscal responsibility and procurement accountability.
Other provisions that Policy Alert asked lawmakers to amend include the proposed powers of the Governor to bypass bidding for billion-naira contracts, which it argued could undermine the principles of transparency and accountability.
Policy Alert urged lawmakers to require the publication of citizens’ budgets, debt sustainability reports and annual compliance reports by the proposed board.
It is worth noting that one of the executive bills introduced alongside the fiscal responsibility bill is the Akwa Ibom State Public Procurement Regulatory Agency (Establishment) Bill, which seeks to grant the Governor powers to bypass bidding for billion-naira contracts for a committee chaired by the Governor.
Policy Alert argued that this provision could undermine the principles of transparency and accountability, and called for lawmakers to amend the bill to require that all public procurement be conducted through competitive bidding processes.
The organisation also urged lawmakers to require that all government contracts above a certain threshold be disclosed to the public, and that all government agencies provide regular updates on their spending and procurement activities.