Senate Repeals ‘Archaic’ 1956 Audit Act, Passes New Federal Audit Bill to Crack Down on Financial Mismanagement

In a historic move to overhaul Nigeria’s financial oversight mechanisms, the Senate concluded the amendment of the 69-year-old Audit Ordinance of 1956. This legislative milestone effectively repeals the colonial-era law and introduces the Federal Audit Service Bill, 2025, a modern framework designed to end decades of systemic revenue leakages.

The bill, which was presented by the Leader of the Senate, Senator Opeyemi Bamidele, was adopted during a plenary session aimed at strengthening the country’s public accounts management. Bamidele argued that the 1956 Ordinance was a “pre-independence relic” that lacked the teeth to ensure accountability in a modern democracy.

The new legislation marks a radical shift in how public funds are scrutinized. It establishes the Federal Audit Service and a Federal Audit Board, providing the Office of the Auditor-General for the Federation (AuGF) with the independence and operational autonomy it has long sought. For the first time, the AuGF will have the clear statutory power to audit all government statutory corporations, commissions, and authorities areas that were previously contested or restricted.

A major highlight of the bill is the introduction of strict penal measures. Any accounting officer or head of an MDA (Ministry, Department, or Agency) who obstructs the Auditor-General or denies the office access to financial records now faces a five-year jail term. This provision is expected to deter the culture of ignoring audit queries, which has historically hindered the fight against corruption.

“The 1956 Act was enacted for a colonial administrative structure and is grossly inadequate for our present complex public finance architecture,” Senator Bamidele noted. “This new bill ensures that our supreme audit institution aligns with international standards of transparency.”

The passage of the bill comes at a high-activity period for the National Assembly, as lawmakers also moved forward with the creation of a new state for the Southeast region. Furthermore, the updated audit framework is expected to be a critical tool for the executive branch as President Bola Tinubu prepares to present the 2026 Federal Budget to a joint session of the National Assembly this Friday.