Overview

The Fiscal Responsibility Act, 2007 is a Nigerian federal law enacted on July 30, 2007, to promote prudent management of the nation's resources, ensure long-term macroeconomic stability, enhance accountability and transparency in fiscal operations, and establish the Fiscal Responsibility Commission. The Act is divided into 13 parts covering the establishment of the Commission, medium-term expenditure framework, annual budget, budgetary planning of corporations, budget execution, public revenues, savings and asset management, public expenditure, debt and indebtedness, borrowing, transparency and accountability, enforcement, and miscellaneous provisions. Key provisions include the creation of the Fiscal Responsibility Commission with powers to enforce fiscal rules, mandate a Medium-Term Expenditure Framework (MTEF) that sets aggregate expenditure ceilings, require annual budgets to be derived from the MTEF, impose conditions on increasing government expenditure and personnel costs, set limits on consolidated debt for all government levels, prohibit the Central Bank of Nigeria from financing government deficits, and mandate publication of audited accounts and budget execution reports to ensure transparency. The Act applies to federal, state, and local governments, as well as government corporations and agencies.

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