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By Becky Usman

In a historic move, the House of Representatives has passed the Nigeria Audit Service Bill, thereby repealing the outdated Audit Ordinance of 1956. This significant legal provision paves the way for the establishment of the Federal Audit Board and grants additional powers and functions to the Office of the Auditor-General of the Federation.

The bill, titled “an act to repeal the Audit Ordinance of 1956, and enact the Federal Audit Service Act, 2023, to establish the Federal Audit Service, provide for additional legal powers and functions of the Auditor-General for the Federation, establish the Federal Audit Board, and for related matters,” underwent thorough scrutiny. Various lawmakers expressed both support and opposition to the proposed amendments, leading to the bill’s referral to the committee of the whole House, presided over by Hon. Benjamin Okezie Kalu, the Deputy Speaker.

During the plenary session, the Majority Leader of the House, Prof. Julius Ihonvbere, highlighted that the Bill is part of the 10th House of Representatives’ efforts to eliminate colonial vestiges and bring it in alignment with relevant sections of the Nigerian constitution. He emphasized that the House leadership resubmitted the bill from the 9th Assembly to effect the necessary amendments, which were crucial for granting the Federal Audit Board the independence, impartiality, and an enabling environment required for effective service to Nigerians.

The new law, under Section 4(a), stipulates that the Chairman of the Board must possess a minimum of 15 years of experience in accounting and auditing, either in the public or private sector. Section 4(2) designates the Auditor-General for the Federation as the chief executive officer, while the Board is to comprise six members representing each of the geopolitical zones. Additionally, it includes a representative from the Head of Service of the Federation, a member of the Federal Civil Service Commission not below the rank of a Director, two individuals who retired from the Service, a representative of the Institute of Chartered Accountants of Nigeria, and a representative of the Association of National Accountants of Nigeria. The Legal Adviser of the Service shall serve as the Secretary.

Section 6(a) specifies that Board members serve a term of four years and may be reappointed for another term of four years, but no more.

Moreover, Section 22 sets the retirement age for the occupant of such office in line with the Civil Service Rules, with the retirement age being 60 years or 35 years of service, whichever comes earlier.

Notably, the Public Accounts Committee (PAC) is responsible for scrutinizing and reviewing the annual reports submitted by the Auditor-General of the Federation, with the authority to summon affected Ministries, Departments, or Agencies (MDAs) or relevant individuals. The findings of the Committee are presented during plenary and may be forwarded to the President for the implementation of resolutions based on the report.

With this remarkable development in the House of Representatives, the bill will now proceed to the Senate for immediate concurrence. Prior to this groundbreaking legislation, Nigeria was the only country in Africa among the 54 countries without a robust audit law, underscoring the significance of this achievement.