AdvoKC: Tinubu Federal Audit Service Bill Assent Vital For AGF

• The AdvoKC Foundation has urged President Bola Tinubu to sign the Federal Audit Service Bill, which aims to grant Nigeria's Auditor-General greater financial and administrative autonomy.
• Currently, the Auditor-General's office relies on other government bodies for budget allocation, fund release, and personnel management, compromising its independence.
• Nigeria failed to meet international fiscal transparency standards for the second consecutive year in the US Department of State’s 2026 report, a situation linked to the audit institution's structural weaknesses.
• Delayed funding has severely limited the Auditor-General's operational capacity, evidenced by only 4% of its 2025 capital allocation being released and only 5 out of approximately 100 foreign missions audited.
• The proposed legislation, already passed by the National Assembly, is crucial for enhancing public financial management and accountability in Nigeria.

The practical ramifications of this institutional weakness are stark, with inadequate funding directly constraining the scope and effectiveness of audits the Auditor-General can undertake.

The AdvoKC Foundation has reiterated its appeal to President Bola Tinubu, urging him to assent to the Federal Audit Service Bill. This renewed call highlights persistent concerns that delays in enacting the legislation are undermining the operational independence of Nigeria's supreme audit institution, preventing it from effectively managing its own finances and administration.

Under the current framework, the Auditor-General for the Federation (AGF) remains reliant on other governmental bodies for crucial aspects such as budget allocation, the release of appropriated funds, and personnel management. This structural dependence significantly impedes the Auditor-General's ability to independently scrutinize public spending, a critical function for robust governance. The foundation's communications manager, Luqman Adamu, signed the statement outlining these concerns.

This renewed advocacy follows recent international assessments that underscore Nigeria's challenges in public financial oversight. The United States Department of State’s 2026 Fiscal Transparency Report once again evaluated Nigeria against global standards, while the International Monetary Fund’s (IMF) 2026 assessment of the Nigerian economy also emphasized the urgent need for enhanced public financial management, transparency, and accountability. These reports reinforce the issues AdvoKC initially raised in July when it formally communicated with the Presidency and publicly pressed President Tinubu to sign the Bill, which has already received approval from both chambers of the National Assembly.

The core issue, as identified by AdvoKC, lies in the institutional arrangements that govern Nigeria's audit office. The foundation argues that the Auditor-General cannot exercise effective oversight when the essential resources required to conduct audits are controlled by other government entities. This lack of autonomy directly impacts the integrity and reach of audit functions.

Specifically, the existing structure dictates that the Budget Office of the Federation determines the audit office’s budget allocation, while the Ministry of Finance retains control over the release of these allocated funds. Furthermore, personnel matters, including recruitment, promotion, and disciplinary actions for the audit office’s staff, fall under the purview of the Federal Civil Service Commission, rather than the Auditor-General. This fragmented control over critical operational elements severely compromises the independence necessary for a supreme audit institution.

The Federal Audit Service Bill is specifically designed to address these systemic deficiencies. Its primary objective is to grant the audit institution greater control over its financial resources and human capital, thereby fostering the independence required to fulfill its mandate of scrutinizing public expenditure without undue influence or constraint.

Habib Sheidu, Project Director for AdvoKC, emphasized the growing urgency of the situation, noting that the identified weaknesses in Nigeria’s audit system are having tangible consequences on the government’s capacity to monitor public expenditure. He highlighted that the initial case presented to the Presidency in July was based on financial data alone, but now, two months later, the evidence has mounted.

This includes a 'second international verdict' (referring to the US report), the Auditor-General’s own accounts of its operational limitations due to uncontrolled funding, and the issue even becoming a campaign point for a former Vice President. The latest US assessment, which covered fiscal transparency practices during the 2025 calendar year, evaluated 139 governments and the Palestinian Authority against minimum standards. While 73 of these met the required benchmark, Nigeria failed for the second consecutive year, a failure directly attributed by AdvoKC to the institutional structure governing its audit office.

The practical ramifications of this institutional weakness are stark, with inadequate funding directly constraining the scope and effectiveness of audits the Auditor-General can undertake. Lawmakers disclosed in February that only four percent of the Auditor-General’s approved capital allocation for 2025 had been released. This severe funding constraint meant that, during the relevant audit cycle, the Auditor-General’s office was able to audit only five of Nigeria’s approximately 100 foreign missions, underscoring the profound impact of the current system on public financial management reform in Nigeria.

Lawyers and compliance officers should note that the delayed assent to the Federal Audit Service Bill indicates continued weaknesses in Nigeria's public financial oversight, potentially increasing risks in government contracts and public sector dealings due to limited audit scrutiny. Monitoring the bill's progress is crucial as its enactment would significantly enhance fiscal transparency and accountability, impacting due diligence and risk assessments for clients engaging with government entities.

Source: Original reporting via The PUNCH