The Federal Government has cautioned state and local governments across Nigeria against taking loans from banks or financial institutions without first obtaining a Certificate of Proof of Compliance from the Fiscal Responsibility Commission. The government said such borrowing is illegal and can attract serious legal action.
The warning was directed at the 23 local government chairmen in Kaduna State by Barrister Charles Chukwuemeka Abana, Director of Legal Services, Investigation and Enforcement at the Commission, during a financial management workshop in Kaduna. Abana represented the Executive Chairman of the Fiscal Responsibility Commission, Victor Muruako.
He emphasized that under the Fiscal Responsibility Act of 2007, borrowing is only permitted for projects that build long-term value, such as infrastructure and human development, and not for day-to-day running costs. Abana also warned that banks giving loans outside the law and public officers ignoring these rules could face severe consequences.
Abana condemned the practice of spending public funds without budgetary approval, calling it “fiscal haram,” and stressed that every naira must deliver value for money. He advised local government leaders to avoid giving public funds to friends or political supporters and to ensure payrolls reflect properly employed staff.
The director also highlighted that all spending must align with budget approvals and benefit the public. He encouraged open and transparent administration and said the Commission is ready to provide technical support to strengthen fiscal responsibility at the local level.
Governor Uba Sani of Kaduna State, speaking at the workshop, condemned mismanagement and theft of public funds, urging elected officials and appointees to uphold honesty and transparency. He reaffirmed his administration’s commitment to reforms, financial discipline, and responsible leadership.
Sani Rabiu Bako, Executive Chairman of the Kaduna State Fiscal Responsibility Commission, described the workshop as a critical step in improving public fund management at the grassroots. He noted the participation of agencies including the Code of Conduct Bureau, the Economic and Financial Crimes Commission, the Bureau of Public Procurement, and the Centre for Fiscal Transparency and Public Integrity.
Bako emphasized that proper financial management ensures lasting development, better roads, cleaner communities, improved schools, and overall economic growth. Workshop sessions also focused on ethical leadership, procurement best practices, and anti-corruption strategies to guarantee effective use of public funds.
Leave a comment