Bureau commends Finance Ministry on reforms

The Director-General of the Bureau of Public Service Reforms, Mr Dasuki Arabi, has commended the Ministry of Finance for its achievements, which have grown to the Public Financial Management reforms.

Arabi made the commendation on Tuesday at the Bureau’s monthly seminar featuring the Minister of Finance, Hajia Zainab Ahmed, on the topic ‘Public Financial Management Reforms: Successes, Challenges and Way Forward’.

The director-general said that the reforms had contributed significantly to public financial management in Nigeria.

“The most decisive factor for effective strategic leadership and coordination of the implementation of all the interventions under this pillar falls on the Federal Ministry of Finance, Budget and National Planning, with the concerted efforts of several key Ministries, Departments and Agencies.

“Public Financial Management, (PFM) refers to the set of laws, rules, systems and processes used by sovereign nations (Federal, States and Local Governments), to mobilise revenue, allocate public funds, undertake public spending, account for funds and audit results,” he said.

According to him, PFM reforms mostly prioritise technical approaches to improve the performance of its systems, including through the integration, modernisation and automation of PFM processes, revenue collection, public expenditure management and procurement systems.

“There are lots of achievements that accrue to the PFM reforms in recent times that have contributed significantly to public financial management in Nigeria.

“Some of the key reforms include the Presidential Initiative on Continuous Audit, Expansion of Treasury Single Account, Coverage, Creation of Asset Tracking and Management Project Debt Management Reforms, Domestic Borrowing Cost, Fiscal Support to States, Budget Reforms and Reforms within the Efficiency Unit.

“ Replacement of Old Cash-Based Accounting System with an Accruals-Based System, Expansion of Integrated Payroll and Personnel Information System, Taxation/ Pension Reforms, Government Integrated Financial Management Information System and International Public Sector Accounting Standards,” he said.

In her speech, the minister, represented by Mr Ben Akabueze, Director General Budget Office of the Federation, assured the BPSRs that the ministry would continue to adapt to reforms as it enhances the growth and economy of the country.

Ahmed said the Administration was committed to accelerating post-COVID-19 economic recovery through the Nigeria National Development Plan 2021 to 2025

“ Stimulating inclusive, diversified and sustained economic growth; supporting the private sector’s productivity and competitiveness; creating productive employment & preserving jobs.

“ Ensuring macroeconomic stability, and Promoting poverty reduction and more equitable wealth creation.

“These are the key goals of the finance act, what are trying to do to achieve through the annual finance act,” she said.

She also explained that the number one and most important challenge of the ministry was its deteriorating fiscal balance.

“This is the picture it shows here, in 2015 we have been in negative territory, we have been below zero, our fiscal balance has been negative, in other words, our expenditures have exceeded our revenues.

“Since 2015, it is possible it earlier this phenomenon has been with us earlier than 2015, but we are just taking 2015 since the advent of this current administration, but it’s a phenomenon that has been with us for a long while.

“We must deal with it and apart from our revenue challenges that I talked about, the oil used to play a significant role in government revenue at a point up to 70 per cent that’s no longer the case oil as a source of revenue is very unpredictable.

“And, it is often affected by factors outside our control, so if we want a sustainable, fiscal position we cannot rely on oil, so we must move from oil. (NAN)