Fiscal Responsibility Act (Amendment) Bill

A Bill amends the Fiscal Responsibility Act to strengthen fiscal discipline and improve debt management transparency. It updates deficit and debt ceiling provisions, enhancing accountability for federal, state, and local government finances. This action aims to reduce public debt and fiscal deficits to sustainable levels.

Fiscal Responsibility Act (Amendment) Bill Policy Overview

What Is This Policy?

An amendment to the Fiscal Responsibility Act 2007 to strengthen fiscal discipline, improve debt management transparency, update deficit and debt ceiling provisions, and enhance accountability for federal, state, and local government finances.

Who Does It Target?

Federal, state, and local governments Federal Ministry of Finance and the Budget Office Debt Management Office (DMO) National Assembly appropriation and finance committees

What Does It Aim to Achieve?

Reduce fiscal deficits and public debt to sustainable levels Strengthen enforcement of expenditure limits and borrowing caps Improve transparency in public finance management and budget execution Align Nigeria's fiscal framework with IMF/World Bank fiscal sustainability benchmarks

Key Features

Current Status

Funding: N/A — this is a regulatory/governance framework, not a spending programme

How to Access

N/A — the Act governs government fiscal behaviour; citizens engage through budget monitoring and legislative advocacy. Application method: Citizens can access budget documents at: www.budgetoffice.gov.ng

Important Terms

Violation of debt ceiling provisions triggers mandatory fiscal adjustment programme States that breach borrowing limits face sanctions on FAAC disbursements Annual fiscal policy statement required by the President before budget presentation

Impact & Metrics

Nigeria's debt service-to-revenue ratio exceeded 90% in 2023; the amendment aims to reduce this to below 50% by 2030 through strengthened fiscal discipline.

Official Resources

Website: www.finance.gov.ng | www.dmo.gov.ng Contact: Federal Ministry of Finance — [email protected] | DMO — [email protected] Federal Republic of Nigeria — Policy Summary Document | March 2026

Legal Framework

Fiscal Responsibility Act 2007 (principal Act being amended); Constitution of the Federal Republic of Nigeria 1999 (Sections 80-88 on federal finance); Finance (Control and Management) Act; Debt Management Office Act