THE Fiscal Responsibility Commission (FRC) has urged the Federal Government to introduce a performance-based reward system to ministries, departments, and agencies (MDAs) towards achieving a stable economy in the country.
The acting Chairman of FRC, Mr. Victor Muruako, who stated this in an interview with News Agency of Nigeria (NAN) on Thursday, noted that the reward system would enhance healthy competition and encourage hard work.
NAN reports that Muruako spoke on the state of Nigeria’s economy as it celebrates its 60th independence anniversary.
“There should be a clear attachment of performance to chief executives and management of government-owned enterprises.
“There should also be an incentive, such as renewal of tenure, which should be on the basis of meeting revenue targets.
“Such incentives will enhance competition and encourage MDAs to work hard towards achieving their respective mandates,” he said.
Muruako also stressed the need for states to adopt the fiscal responsibility law, as half of the nation’s spending was being done at the state and local government levels.
“Fiscal responsibility and macroeconomic stability of the country is not only about the national economy. The Act is limited, to an extent, to the sub-national level, I mean, the states and local governments.
“We will observe that the Act also makes it mandatory for the Federal Government, through fiscal means, to monitor the debt and indebtedness of the states and local governments.
“This obviously means that the A to Z of fiscal responsibility is not just limited to the national economy,” he said.
The FRC chairman noted the internally-generated revenue (IGR) of some states was high and that there were greater accountability and prudence in the management of public resources at the sub-national level.
According to him, more than 16 states have adopted the fiscal responsibility law and domesticated it, with some of them already having their fiscal responsibility agencies.
Muruako said that the commission was making efforts to reach out to other states for the adoption of the law. (NAN)
– Oct. 1, 2020 @ 10:35 GMT |