4. • To define the concept of Financial Autonomy (FA)
• To highlight the implications of FA on real independence of the legislature
• To identify the possible impact of FA on quality of legislations
• To explain the impact of FA on Legislative oversight functions
• To highlight the relationship between the quality of fund appropriation and
overall service delivery
• To discuss the prospects, benefits and challenges of FA to State Assemblies
• To suggest ways for overcoming the challenges of FA to State Assemblies and
embedding the benefits
Objectives of the Presentation
4
5. • Introduction
• The Concept of Financial Autonomy (FA)
• FA and Independence of the Legislature
• FA and Quality of Legislations
• FA and Legislative Oversight Functions
• Quality of Fund Appropriation and Overall Service Delivery
• Prospects, Benefits and Challenges of FA to State Assemblies in Nig.
• Remedies to the Challenges of FA to State Assemblies in Nigeria
• Conclusion
Discussion Outline
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6. • Separation of powers is an essential element of the Rule of Law and is enshrined in the
Constitution.
• The system of separation of powers divides the tasks of the state into three branches, namely:
legislative, executive and judicial.
• Government is thus operated under a tripartite arrangement whereby provision is made for one
organ to make laws, for another to execute the laws, and for yet another organ to interpret the
laws.
• The functions of the state are numerous and include the establishment of law and order,
maintenance of peace and security, provision of social amenities, quality education, internal and
external security, administration of justice, and most fundamentally enactment of laws for the
good governance of the people.
• Due of the enormity of these responsibilities, separation of powers is necessary to prevent over-
concentration of powers, prevent abuses and ensure effectiveness and efficiency in governance.
Introduction
6
7. • Separation of powers is not absolute, as the Constitution recognizes instances where the
executive can venture into areas meant for the judiciary (e.g. the appointment of judges); the
legislature can oversee executive or even judicial activities (e.g. approval of budget and
other management of state funds); while the judiciary can review the activities of either of
the other two arms of government. This is with a view to ensuring checks and balances.
• Independence of the Legislature is concern with given the lawmakers the enabling environment
to perform their functions without interference or direction by any other arm of government.
• For the three arms of government to effectively discharge their roles, each arm must not be
encumbered in any way. However, because the executive arm has control of the finances, in most
cases the legislature and the judiciary are encumbered through inadequate allocation of funds.
• The seeming lack of financial autonomy for the State Assemblies and Judiciaries has been quite
precarious for them, subjecting them to the whims and caprices of the Executive in some states,
thereby limiting their capacity to carry out their functions in a more effective manner.
Introduction… Cont’d
7
8. • The prevailing financial situation of State Assemblies has incapacitated
them in discharging their responsibilities resulting in compromising
positions.
• Globally, various strategies and methods have been adopted for the
purpose of good governance.
• One of such strategies is financial autonomy to each arm of government,
which is seen as essential ingredient for effective discharge of
responsibilities.
• Through financial autonomy, funds allocations to each arm of government
is paid directly instead of being routed through the executive arm.
Introduction… Cont’d
8
9. •The concept of financial autonomy and its impact on
Legislative independence, quality of legislations, oversight
functions and service deliver.
•Prospects, benefits and challenges of financial autonomy to
state assemblies in Nigeria.
•Remedies to the challenges of financial autonomy to State
Assemblies in Nigeria and the way forward.
Major Sub-themes
9
10. Part II: Theme 1
Financial Autonomy (FA)
• Financial Autonomy of the legislature may be
defined as non-dependence and non-
subordination of the legislature in terms of
unfettered control over its financial and other
related resources.
• It entails the parliaments having equitable access
to resources or having enough financial muscle to
carry out their legislative mandate, including
exercising power over the budget.
• Financial autonomy is necessary, as the bedrock
of parliamentary independence hinges on
financial Independence.
10
11. • Financial autonomy (FA) refers to the ability of an institution to manage its
financial affairs independently, without any external influence.
• FA has both economic, as well as, political side. It entrails both economic and
political independence.
• It has to do with the freedom to exercise financial authority within the confines of
the law or constitution and to discharge legally or constitutionally assigned
responsibilities without undue interference or restraint from within or higher
authority.
• Financial autonomy entails that an entity is able to receive its own allocation
directly from the source and manage its finances without interferences from
within or outside the entity.
• Financial autonomy is an essential ingredient to officious oversight functions by
the legislature.
The Concept of Financial Autonomy (FA)… Cont’d
11
12. • President Muhammadu Buhari signed an Executive Order 10 on Friday May
22, 2020 based on the power vested in him by Section 5 of the Constitution of the
Federal Republic of Nigeria, 1999, granting financial autonomy to state assemblies
and judiciary in accordance with section 121(3) of the Constitution. The Executive
Order provides for the following:
i. Allocation of appropriated funds to the state legislature and state judiciary as a
first line charge in the consolidated revenue fund of the state
ii. The Accountant-General of the Federation shall deduct directly from Federation
Account allocation of any state, funds allocated to the state legislature and state
judiciary and remit same to them where the state failed to do so on its own.
iii. All states of the federation shall include the allocations of the two arms of
government in their appropriation laws.
iv. States shall amend their appropriation law to encompass financial autonomy of
state legislature and state judiciary.
Financial Autonomy of State Assemblies in Nig.
12
13. • FA brings about independence in legislative thinking, decision making, activities
and oversight functions, thereby enabling the parliaments to effectively
discharging their constitutional duties, without fair, favour or prejudice.
• FA enables the legislature to define their oversight and lawmaking agenda
independent of other arms of the state with a view to advancing the broader
governance agenda of improving the lives of the citizenry.
• Providing economic forecasts that is independent of the executive arm,
interrogating underlying assumptions and attendant risk.
• Enables independent determination of various options for the budget including
spending increases, tax cuts and increases, and suggested implications of broad
policy choices.
• Financial autonomy ensures both economic and political independence of the
legislature.
• Bring about proper separation of powers and legislative independence.
Financial Autonomy & Legislative Independence
13
14. • The readily available resources at the disposal of parliaments would enhance the
quality of legislations. This is in the light of the fact the parliament can use the
resources at its disposal to engage the services of specialists who would help it in
the discharge of its responsibilities.
• FA would facilitate the acquisition of relevant equipment and facilities which
would go along way in improving the quality of legislations.
• FA would enable the legislature to carry out regular research on priories of the
public and matters of public importance which would go along way in coming up
with the right legislations that would uplift the general well being of the
citizenry.
• FA would help to enhance the quality of budgeting and the overall Appropriation
Act for economic growth and development.
Financial Autonomy & Quality of Legislations
14
15. • FA would affords the legislature the opportunity to monitor properly the
activities of the Executive in the interest of the larger society, view to
ensuring that public funds are channeled to good use while ensuring that
services to be rendered are equitably distributed.
• FA is a means towards effective legislative oversight functions.
• Financially autonomous parliaments are strong and effective in
discharging their constitutional duties. They are able to define their
oversight and lawmaking agenda independent of other arms of
government.
• The public will be well served better if parliaments have sufficient
resources to carry out their constitutionally mandated functions.
Financial Autonomy & Legislative Oversight
15
16. • FA has the tendency to improve the quality of the Appropriation Act through better scrutiny
of the budget proposal submitted by the Executive arm of government and this would go
along way in enhancing the quality of overall service delivery.
• Financial autonomy provide resources that are needed for ascertaining the needs of the
people through research and environmental scanning. This would ensure the execution of
people oriented projects based on the needs of the populace and prevention of white
elephant projects.
• Enhances perusal and legislative scrutiny of budget proposal which will ensure realistic,
achievable and focused budget with a view to enhancing overall economic growth and
development.
• FA would bring about greater legislative wheel power over fund appropriation which
would enhance overall efficiency, economy and effectiveness of government programmes
and activities, and avoid wastages and extravagance in discharge of responsibilities.
Fund Appropriation & Overall Service Delivery
16
17. Part III:Theme 2
Prospects, Benefits and Challenges of
Financial Autonomy to State Assemblies (SAs)
• Financial autonomy would enable
the legislature to operate efficiently
and to exercise effective oversight
over a range of policy issues
affecting people.
• The prospects, benefits and
challenges of financial autonomy
are multitude and include the
following:
17
18. • It will reduces the wide gap in resources and facilities available to the parliaments to
enable them effectively discharge their constitutional responsibilities.
• It will help in securing the services of sufficient experts to provide impartial support to
members across parliament’s whole range of work.
• It will help to enhance the provision of office facilities for individual members, with their
own secretarial and research support.
• It will enhance monitoring and evaluation, oversight and accountability functions of the
legislature.
• It will enhance how effectively the legislature performs its role of managing and
controlling how public fund is being utilized.
• It will enable the legislature take active part in debate on the Appropriation Bill without
fair, favour or prejudice and convey its views and positions to the Executive which will
in turn put the Executive on its toes and make it more responsible.
Prospects/Benefits of Financial Autonomy to SAs
18
19. • It will make the legislature fervent in its scrutiny of appropriation bill, as well as other projects of the
executive involving spending of public funds.
• It will give the legislature the wheel power to put emphasis on those areas that will positively affect the lives
of the entire populace.
• It will enable the legislature operate efficiently and to exercise effective oversight over a range of policy
issues affecting people.
• It will give the legislature freedom from an over powerful Executive Arm with a view to effectively discharge
its responsibilities.
• It would lead to the emergence of strong legislature, bring about greater mutual respect for one another
among the three arms of government, and the deepening of the nation’s democratic culture.
• It is a key to deepening, protecting and preserving democracy and justice at the state level.
• It gives the legislature enough financial muscle to carry out its legislative mandate, including exercising
power over the budget and effective oversight over the executive.
• The electorates will be well served if parliaments have sufficient resources to carry out their constitutionally
mandated functions..
Prospects/Benefits of FA to SAs… Cont’d
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20. • FA of the legislature would be dependent on the institutions of the State to which it belongs. It
therefore has the tendency to vary from state-to-state in Nigeria.
• Undue executive dominance may still prevails, whether through lack of parliamentary capacity or
unwillingness on the part of parliaments to exercise the powers they have, even where the legislature
has financial autonomy.
• Lack of sufficient expert staff to provide impartial support to members across parliament’s whole
range of work may be an impediment to the effectiveness of the Legislature even if it has financial
autonomy.
• Financial autonomy will make the State Assemblies to be self-accounting units, which entails that
they are to be held fully accountable to the people on their activities, more transparent and not
shrouded in secrecy. As they would draw their funds directly to carry out their statutory functions,
there should be no excuse for less than desirable performance.
• Financial autonomy of State Assemblies would require greater care on such issues as tenders,
contracts, procurement, etc, which deserve transparency. Federal anti-corruption agencies such as the
EFCC and ICPC would now focus more attention on them on account of their financial independence.
Challenges to Financial Autonomy of SAs
20
21. Part IV: Theme 3
Remedies to the Challenges of
FA to State Assemblies (SAs)
The remedies include re-orientation
of the state governments, effective
training for members of the
parliaments, better cooperation
between the three arms of
government, hiring of experts and
specialists services to support the
legislature and greater openness,
transparency and caution on the
part of the legislature, among
others.
21
22. • Re-orientation of the state governments to appreciate the needs and benefits of
financial autonomy to the state assemblies and the need for greater cooperation
among the three arms of government for good and effective governance.
• Capacity-building programmes for parliamentarians and their cohort of support
staff.
• Hiring of services of sufficient expert staff to provide impartial support to members
across parliament’s whole range of work.
• Judicious, open and transparent utilization of resources to ginger the other arms of
government to imbibe good financial management and provide leadership by
example.
• Strengthening of financial management, due process, prudence, transparency and
accountability framework of the state assemblies to provide safe landing from
investigations that may be carried out by EFCC and ICPC.
Remedies to the Challenges of FA to SAs
22
23. • Striking a balance between cooperation with, and oversight over, the other arms
of government. FA does not preclude cooperation with the executive. This
cooperation is critical for effective functioning of the government.
• More effective training for members themselves, with encouragement for greater
specialization.
• More extensive and systematic use of experts in different fields from civil society
and academia, to support the work of parliamentary committees and groups.
• Development of internship programmes to supplement scarce parliamentary
resources.
• The development of on-line facilities to enhance the research and information
management capacity of the parliaments.
Remedies to the Challenges of FA to SAs… Cont’d
23
24. • The legislature has very wide powers in governance all over the world, and
its role is no longer limited to the traditional law making power. It now
performs educational and enlightenment functions, approval of appointments,
power of impeachment, public finance oversight, among others.
• FA of the legislature comes in three dimensions, which are sufficient budget,
powers or independence to utilize the budget and the freedom from outside
interference in utilizing the budget.
• The 1999 Constitution of Nigeria recognizes the concept of financial
autonomy but its practice, especially among the federating units, has been
quite problematic, especially as most state governments do not see that as
beneficial to them.
Conclusion
24
25. • FA does not translate to more money to the legislature as assumed in some quarters,
it just ensures a clear cut separation as provided by the rules of separation of powers.
• FA of State Assemblies clearly does not preclude cooperation with the executive. The
purpose of FA is to allow Parliament free hand to discharge its constitutional
mandate and not to bring about unwarranted rivalry with the executive.
• FA would assist the legislature to deliver on its core mandate of law making,
oversight, and public participation in order to meet the aspirations of the people and
bring about the desired economic growth and development.
• FA of state assemblies is necessary for the preservation of the doctrine of separation
of powers and for good/effective governance that is geared towards improving the
lives of the citizenry.
Conclusion…Cont’d
25
