The Nigeria Governors’ Forum says not less than 25 states in the country have passed the Fiscal Responsibility Law.The Director-General, NGF, Mr Asishana Okauru, said this while delivering a goodwill message at the Fiscal Responsibility Commission’s Stakeholders Dialogue on Implementation of Section 45 of the Fiscal Responsibility Act in Lagos.
“Unfortunately, certain flexibilities and a weak consequence system, renders full compliance a choice. In a keynote address, the Secretary to the Government of the Federation , Dr George Akume, said that the dialogue was organised to promote the need for subnational to borrow through the right channels and for the right reasons.
He express worry that the private sector may be discouraged from investing in the states, if the government needs to service debt and also provide a satisfactory environment for investment in infrastructure. Akume said that might create pressure on the Federal Government to provide financial assistance to ensure a continued provision of essential public services.
He lauded FRC for organising the meeting at a time when the Nigeria economy is faced with key challenges.