….Tasks States On Fiscal Prudence
The Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Muhammad Shehu Bello, has commended President Bola Tinubu for his directive to reduce the size of the official convoys of ministers and chief executives in his administration as a means of reducing the high cost of governance, while urging state governments to also follow suit.
The RMAFC’s Chairman, who gave the commendation in a statement at the weekend, said the decision would go a long way in reducing the current high cost of governance, which is partly responsible for the reduction in the provision of infrastructure and social services and the consequent fall in investment, high level unemployment, and rising insecurity in the country.
He pointed out that no society can make meaningful progress unless it developed a competent and cost-effective management system capable of maximizing the nation’s resources to the benefit of all.
Shehu recalled that RMAFC had, over the years, not only advocated the reduction in the cost of governance at all levels of government as a way of preserving scarce resources for the sustainable development of the country, but also made far-reaching recommendations to the three tiers of government on the need to cut unnecessary expenditure and to monitor expenses on developmental projects that would impact positively on the lives of the citizenry.
According to him, the high cost of governance in the country is caused by the expensive nature of large bureaucracy, the duplication of government ministries, departments and agencies, and endemic corruption.
He expatiated: “Other factors were the high cost of public service delivery due to infrastructure failure, high security costs as a result of insurgencies, kidnappings, ethno-religious agitations, armed robbery, multiple salaries and severance allowances, extravagant activities and expenditures, high domestic and foreign debts, as well as weak enforcement institutions.”
Shehu decried the high cost of governance in Nigeria over the years, which he described as alarming, unsustainable and continued to raise public concern due to its negative implications for investments, , the real sector, infrastructure development, and other key sectors of the economy.
He noted: “The realization that all three arms of government are involved is even more disturbing. The Commission has at different fora made its position known on this matter through paper presentations.
“It is evident that Nigeria’s cost of governance is among the highest in Sub-Saharan Africa, which has significantly hindered the government’s ability to fulfill its primary responsibilities such as infrastructural development, providing quality healthcare, improving educational standards, etc”, the Chairman added
In order to effectively reduce the overbearing high cost of governance in Nigeria, the RMAFC recommended the immediate implementation of the Orosanye report as earlier intended by the administration; a reduction in the number of political appointees as recommended in RMAFC’s remuneration package for Political & Public Office Holders; and ensuring prudent spending of government funds at all levels.
