Creation of Supreme Audit Institution with Participatory Mechanisms (NG0032)

Brief Description of Commitment: To strengthen public financial management in Nigeria through effective Institutional reforms of the legal framework guiding audit processes and creation of supreme audit institution.

General Problem / Challenge Addressed by the Commitment: The legal framework for public auditing at the federal level in Nigeria is obsolete and requires repealing and enactment of a new Audit Law to create an independent supreme audit institution. Also, there is lack of citizens participation in the audit process and lack of transparency in the activities of Public Accounts Committees in the National Assembly. These gaps hinder accountability in the management of public resources in Nigeria.

Specific OGP Issue(s) in Focus: 1. Absence of citizens' participation in the audit process. 2. Inefficient and ineffective management and utilization of public resources. 3. Poor delivery of public services. 4. Low budget performance. 5. Weak accountability mechanism.

Rationale for the Commitment: Enacting a new Audit Law will strengthen the Office of the Auditor-General of the Federation and guarantee its financial, operational, and administrative independence to perform its constitutional functions of ensuring accountability in the management of public resources. This will also aid citizens participation in the audit process and improve transparency in the activities of Public Accounts Committees

Main Objective: To ensure that government spending and processes adhere to the strict compliance of approved budget and that all extant rules of government in the decision-making process and disbursement of public funds.

Anticipated Impact: Improved transparency and accountability in the budget process through independent and participatory audit of government expenditure, processes, and outcomes.

Expected Outcomes | Milestones (Performance Indicators)

1. Improved management of public resources to provide essential services. | Level of transparency of budget process (Means of Verification - Ranking in the Open Budget Index)

2. Increased citizens' participation in budget processes. | Level of citizen's satisfaction with budget process

3. Improved governance, transparency and accountability. | Percentage of citizens aware of budget process and with access to sectoral performance reports

Planned Activities (Start Date - End Date | Expected Output(s) | Output Indicator(s))

1. Timely publication of key audit documents as part of completion of the budget cycle. (January 2023 - December 2024 | All relevant documents published on time. | Number of audit reports produced)

2. Stakeholder engagements to advocate for granting of independence to the Audit Agency (January 2023 - December 2024 | 1. Re-submission, Passage and effective take-off of the New Audit law 2. Strengthening the mandate of the existing Audit Agency | 1. Signed audit law in use 2. Amount of direct funding to the Audit Agency from statutory transfers 3. Number of professionals engaged in the Audit Agency)

3. Timely and public presentation of quarterly audit report (January 2023 - December 2024 | Published quarterly report of audit | Number of Agencies publishing quarterly Audit reports)

4. Timely publication of annual audit reports (January 2023 - December 2024 | Quality auditing process and output | Average months taken for producing Audit report from end of year)

5. Improving citizens' participation in the audit process and Public Accounts Committees' review of audit reports (January 2023 - December 2024 | Citizens are informed and make inputs to audit report review process | Percentage of citizens with access to Audit documents and information)

6. Timely publication of audit recommendations by the National Assembly (January 2023 - December 2024 | Publication of report of Public Accounts Committee of the National Assembly. | Number of Audit recommendations by the National Assembly carried out)

7. Advocate for timely implementation of audit recommendations by Executive agencies (January 2023 - December 2024 | Citizens advocate for timely implementation of audit recommendations | 1. Number of advocacy visits carried out to selected ministries: 1. Health 2. Education 3. WASH 4. Agriculture 5. Power 2. Number of media dialogue around the executive agencies 3. Number of audit recommendations implemented 4. Number of oversight functions carried out by NASS to ensure implementation)

Source(s) of Funding: Federal Government Budget and Donor Agencies