News Editor
Olu Balogun
Lawmakers from notable African countries converged on Monday in Abuja to collaborate on blocking yearly leakages of $587billion as stated by the African Development Bank, ADB in May this year.
This is as the National Assembly expressed its commitment on establishment of the National Assembly Budget and Research Office, NABRO, as an independent, non-partisan budget office for evidence-based budgeting, comparable to the renowned U.S. Congressional Budget Office, CBO.
Move against the annual loss of $587billion which is equivalent to N887trillion to capital flight in Africa came to the fore at the opening session of 8th Conference of African Network of Parliamentary Budget Offices held at the Abuja Continental Hotel.
In his key note address at the occasion, the Speaker of the House of Representatives, Hon. Tajudeen Abbas said there is no better time for the gathering to focus on fiscal and governance challenges facing various countries in Africa through effective and efficient legislations than now .
Abbas noted that one of the critical challenges is revenue leakage through corruption, illicit financial flows, and inefficiency which must be tackled through better ways of budget scrutiny.
“According to the African Development Bank, Africa loses over $587 billion annually to capital flight – money that flees the continent through corruption, illicit trade, mispricing, and profit shifting by multinational corporations, among other channels.
“Corruption alone is estimated to drain about $148 billion from Africa annually, and other illicit financial flows (such as trade malpractices, smuggling, among others) siphon away additional tens of billions.
“This is money that should be used to build roads in Lagos, equip hospitals in Nairobi, or improve schools in Accra, but instead it vanishes”, he said .
The Speaker posited that Nigeria presents a cautionary example of both the challenge and urgency of oversight , saying “In our public procurement processes, which make up a significant part of government spending, Nigeria loses an estimated $18 billion each year to financial crimes, roughly 3.8% of our GDP. These leaks could fund numerous social programmes many times over.”
“There is a need to stop such leakages so that budgets can lead to better outcomes for citizens.
“That is why we have been increasing oversight hearings, audit inquiries, and strengthening anti-corruption laws. Oversight is vital to ensure that limited resources are used for the public good.
“Institutional capacity constraints also pose a challenge. Many African parliaments have historically lacked independent analytical resources to effectively scrutinise budgets and expenditures.
“Without access to high-quality fiscal data and economic analysis, legislators may struggle to hold the executive to account on complex issues of macroeconomic policy, debt sustainability, or public investment efficiency.
“This gap is exactly what Parliamentary Budget Offices are meant to fill,” he stressed.
Abbas explained further that in the face of the challenges, we are responding with reforms to strengthen the legislative “power of the purse” and ensure accountability.
In doing that, he said one of the most significant advancements in Nigeria is the effort to establish the National Assembly Budget and Research Office, NABRO as an independent, non-partisan budget office for our legislature.
“Let me assure this audience that the National Assembly is fully committed to NABRO’s realisation, full funding, and independence.
“We envisage NABRO as a catalyst for evidence-based budgeting, comparable to the renowned U.S. Congressional Budget Office, CBO.
“Beyond NABRO, the Nigerian legislature is advancing a broader fiscal governance agenda.
“We are revising our Fiscal Responsibility and Finance laws to enhance budgetary discipline and transparency.
“We are empowering our Public Accounts Committees to take decisive action on audit findings”, he added .
Earlier in his remarks at the conference attended by representatives from 16 countries, the Clerk to the National Assembly, CNA, Barrister Kamoru Ogunlana described it as a critical platform for peer learning, capacity building meant for promoting the institutionalisation of evidence-based public finance management.
“I encourage us all to use this Conference not only as a platform for exchange, but as a springboard for innovation and renewed commitment to fiscal representability,” he said.
Some of the participating member states at the conference are Nigeria, Ghana, Kenya, Uganda, South Africa, Tanzania, Namibia, Zimbabwe, Malawi, Mozambique, Liberia, Gambia, Sierra Leone, Cape Verde, etc.
