In a significant development, the House of Representatives has successfully passed the Nigeria Audit Service Bill. This landmark move has effectively repealed the outdated Audit Ordinance of 1956 while simultaneously establishing the Federal Audit Board and granting additional powers and functions to the Auditor-General of the Federation.
The bill, which was titled “An Act To Repeal The Audit Ordinance of 1956” and enacted the Federal Audit Service Act, 2023, has far-reaching implications for the country. It seeks to establish the Federal Audit Service and empower the Auditor-General of the Federation, in addition to setting up the Federal Audit Board and other related matters.
During the committee session held on Thursday to scrutinize and refine the bill, several contributions and amendments were made by the members of the House under the guidance of Deputy Speaker Benjamin Kalu.
The Majority Leader of the House, Prof. Julius Ihonvbere, emphasized that the bill was an essential step towards breaking away from the legacies of colonialism and aligning it with the relevant sections of the constitution of the Federal Republic of Nigeria.
Prof. Ihonvbere, who presented the bill as a carryover from the 9th Assembly, emphasized the urgent need for these changes. The purpose is to grant the Federal Audit Board independence, impartiality, and an enabling environment to discharge its statutory responsibilities effectively.
It is noteworthy that until now, Nigeria was the only country among the 54 countries in Africa without an audit law in place to govern its financial processes.
Addressing his colleagues early on, Rep. Salam drew attention to the fact that this bill had undergone all necessary legislative processes in the past. However, it suffered non-assent from the President due to time constraints. He highlighted that all stakeholders have since harmonized their positions on the bill.
The Federal Audit Service, as per the new law, will function as a Board rather than a Commission. Section 4 (a) states that the Chairman of the Board must have at least 15 years of experience in accounting and auditing, either in the public or private sector.
According to Section 4 (2), the Auditor-General for the Federation will serve as the chief executive officer. Additionally, there will be six members representing each of the geopolitical zones, a representative from the Head of Service of the Federation, a representative from the Federal Civil Service Commission of the rank of a Director or above, two retired individuals from the Service, a representative from the Institute of Chartered Accountants of Nigeria, and a representative from the Association of National Accountants of Nigeria. The Secretary of the Service will be the Legal Adviser.
Section 6 (a) stipulates that board members will serve for a term of four years, which may be renewed for an additional four-year term. However, reappointment beyond this limit is not permissible.
Section 22 addresses the retirement age for holders of office, aligning it with the Civil Service Rule, which sets the retirement age at 60 years or 35 years of service, whichever comes earlier.
It is worth noting that the Public Accounts Committee (PAC) plays a crucial role in reviewing the annual report submitted by the Auditor-General of the Federation. The committee has the authority to summon relevant Ministries, Departments, or Agencies (MDAs) and individuals to respond to their findings. The committee’s recommendations are then considered during plenary sessions and may be forwarded to the President for proper implementation.
Now that the House of Representatives has passed this pivotal bill, it is expected to be transmitted to the Senate for concurrence. The successful enactment of this law will pave the way for a more robust and transparent financial management system in Nigeria.
