KEY POINTS
- RMAFC commends Tinubu’s directive to cut costs.
- State governments are encouraged to follow suit.
- High governance costs impact infrastructure and services.
Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman Muhammad Bello has commended President Bola Tinubu’s directive to reduce the convoy sizes of ministers and chief executives as a strategic move aimed at lowering Nigeria’s high governance costs and improving resource allocation.
State governments urged to adopt cost-cutting measures
Bello encouraged state governments to adopt similar cost-cutting measures, highlighting the importance of resource efficiency at all levels of government to manage the nation’s financial burdens more effectively. He noted that reducing excessive government spending could benefit public infrastructure, social services, and the overall economy, particularly by redirecting funds to high-impact areas.
In a statement issued over the weekend, Bello expressed concern over the country’s high spending on governance, pointing out that this has impeded critical infrastructure development and social services. According to him, these factors have contributed to high unemployment rates, reduced foreign investments, and increasing security challenges, including insurgencies and kidnappings.
“A society progresses when it builds a competent, cost-effective system that maximizes resources for the benefit of all citizens,” Bello said. Reflecting on the RMAFC’s longstanding advocacy for reducing governance costs, he explained that the commission has consistently recommended steps to trim unnecessary expenses. “The cost of governance remains alarmingly high, with Nigeria’s bureaucracy burdened by overlapping ministries, departments, and agencies, compounded by pervasive corruption,” he added.
According to Punch, Bello also highlighted additional pressures on public expenditure, such as deteriorating infrastructure, multiple salary claims, and high domestic and foreign debt levels. He warned that these pressures restrict Nigeria’s ability to invest in essential sectors like healthcare and education, as well as in industrial development.
Nigeria’s governance costs among Sub-Saharan Africa’s highest
Expressing further concern, Bello noted, “Nigeria’s governance expenses rank among the highest in Sub-Saharan Africa, straining government resources and limiting the delivery of crucial services to citizens.”
To address these fiscal challenges, RMAFC reiterated its call for implementing the Oronsaye report, which recommends restructuring Nigeria’s bureaucracy, reducing the number of political appointees, and enforcing stricter oversight of government expenditures.
