Kaduna LG Chairmen Advised Against Unauthorized Borrowing as FRC Pushes Fiscal Discipline
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Local Government Chairmen in Kaduna State have been strongly advised against contracting loans or borrowing from banks and financial institutions without first obtaining a Certificate of Proof of Compliance (POC) from the Fiscal Responsibility Commission (FRC), as mandated by Section 45 of the Fiscal Responsibility Act (FRA) 2007.
The warning was issued by the Director of Legal Services, Investigation and Enforcement at the Fiscal Responsibility Commission, Barrister Charles Chukwuemeka Abana, who represented the Executive Chairman of the Commission, Victor Muruako, Esq., at a recent fiscal governance workshop tagged “KADSFREC 1.0.” The event was held at the Fifth Chukker Polo & Golf Resort along Kaduna–Jos Road, Mararaban-Jos, Kaduna State.
The workshop, organised by the Kaduna State Fiscal Responsibility Commission (KADSFRC) in collaboration with the Ministry for Local Government and Chieftaincy Affairs, focused on the theme, “Strengthening Fiscal Responsibility and Public Financial Management Practices Across the 23 Local Government Areas of Kaduna State.”
Barrister Abana stressed that governments at all tiers are only permitted to borrow for capital expenditure and human development projects, particularly infrastructural development. He warned that lending by banks and other financial institutions in violation of the provisions of the Fiscal Responsibility Act is unlawful and could expose public officers to severe legal consequences.
He also decried the misuse of public funds without proper budgetary appropriation, describing such practices as “fiscal haram.” The FRC official cautioned Local Government Chairmen against indiscriminate disbursement of public funds to political loyalists or unrelated beneficiaries, as well as the inflation of payrolls with unverified names or filling vacant positions without proper budgetary provision.
“Every kobo spent must have value for money. Public resources must be planned, budgeted for, properly appropriated and disbursed towards the execution of projects that positively impact the lives of the people,” Abana stated.
He urged council chairmen to prioritise transparency, accountability, and prudent financial management, noting that decisions made by public officials have long-term implications for both present and future generations. Abana further encouraged local government authorities to utilise the Commission’s technical support services in developing robust Fiscal Responsibility Bye-Laws aimed at promoting sustainable governance built on fiscal discipline.
The FRC Director commended Kaduna State Governor, Senator Dr. Uba Sani, CON, FNIQS, for his sustained commitment to reforms designed to enhance transparency, accountability, and effective management of public funds across the state. He noted that the Governor’s policies have created a conducive environment for accountability institutions, including the Kaduna State Fiscal Responsibility Commission, to operate effectively.
Abana also praised the Executive Chairman of the Kaduna State Fiscal Responsibility Commission, Hon. Sani Rabiu Bako, FNIQS, RQS, for what he described as visionary leadership and proactive initiatives to strengthen fiscal responsibility at the sub-national level. He encouraged the expansion of such initiatives through similar workshops involving Local Government Chairmen across the North-West geopolitical zone.
Earlier in his welcome address, Hon. Bako described the workshop as a critical platform for strengthening public financial management at the grassroots level. He commended the partnership among key accountability and anti-corruption agencies, including the Fiscal Responsibility Commission, Code of Conduct Bureau (CCB), Economic and Financial Crimes Commission (EFCC), Bureau of Public Procurement (BPP), and the Centre for Fiscal Transparency and Public Integrity.
According to him, the workshop aimed to equip financial managers and public office holders with practical knowledge on value for money, transparency, and accountability, ensuring that fiscal responsibility principles are effectively implemented at the local government level where governance directly impacts citizens.
Bako further applauded the Kaduna State Government for prioritising capacity building for public finance managers, noting that effective financial management remains essential for sustainable development, improved infrastructure, environmental sanitation, quality education, and overall socio-economic advancement.
Declaring the workshop open, Governor Uba Sani condemned financial mismanagement and the embezzlement of public funds, calling on elected officials and political appointees to uphold the highest standards of integrity and transparency in public service. He reaffirmed his administration’s commitment to institutional reforms, fiscal discipline, and responsible governance, stressing that public trust can only be maintained when government resources are managed efficiently and in the best interest of citizens.
Participants at the workshop also included representatives of several regulatory and anti-corruption agencies who presented technical papers on fiscal responsibility, ethical governance, procurement best practices, and anti-corruption strategies, further reinforcing the need for accountability and prudent financial management across all tiers of government.
