Fiscal & Tax

Fiscal Responsibility Act 2007

Established the Fiscal Responsibility Commission — sets borrowing limits, requires MTEF, mandates revenue remittance from public agencies.

Signed

2007-07-30

Assented by

Umaru Musa Yar'Adua →

Status

In force

1 Background

The Fiscal Responsibility Act created the legal scaffolding for prudent federal finance: the Medium-Term Expenditure Framework (MTEF), borrowing limits for the federal and sub-national governments, and the requirement that profit-making federal agencies remit 80% of operating surplus to the Consolidated Revenue Fund. It also created the Fiscal Responsibility Commission as the watchdog.

2 Key provisions (5)

Mandatory Medium-Term Expenditure Framework (MTEF)

80% operating-surplus remittance from federal agencies

Borrowing limits for federal and state governments

Quarterly budget-performance publication

Established the Fiscal Responsibility Commission

3 What changed in practice

→

First codified attempt at fiscal discipline since 1999

→

MTEF became the template later replicated at state level

4 Who it affects

Federal MDAsState governmentsPublic agencies

Official Source

Fiscal Responsibility Commission

Primary regulator / sponsoring institution

Use this law on the site

Nigeria Debt Clock

Cross-linked tool that operationalises this Act