Experts have argued that in Nigeria, the cost of governance has consistently been high, reaching alarming levels and therefore unsustainable. This is particularly evident in the persistent increase in recurrent expenditure, which continues to exceed capital expenditure significantly. This issue has sparked public concern and national discourse at different times due to its adverse effects on investment, industrial growth, infrastructural development, and the growth of the real sectors of the economy.
Recently, the federal government approved a cost-cutting initiative across federal establishments, including the presidency. The directive aimed to curtail expenses related to official trips. According to the directive, security outfits within states will front-line the protective details of the President, the Vice President, and the First Lady on local trips. However, should this cost-cutting measure be limited to travel expenses alone?
In December 2023, there was a national uproar concerning the number of Nigerian delegates who participated in the COP28 summit in Dubai. Nigeria reportedly had the largest delegation from Africa, consisting of a total of 1,411 delegates. While the government claimed to have only sponsored a portion of the delegation, many Nigerians found this assertion difficult to believe, given the limited trust they have in public office holders. Perhaps this influenced the decision of President Bola Tinubu.
Citizens have criticised the government for the indiscriminate use of resources as the majority of the population grapples with the effects of inflation in the country. Prominent personalities, including the former governor of Anambra State and presidential aspirant, Peter Obi, have underscored the importance of reducing the cost of governance in the country. Commending President Tinubu for the initiative, Peter Obi described it as a positive step, although he noted, “But this measure is just scratching the surface.” Also, Shehu Sani, the former senator representing Kaduna Central, called on Nigerians to hold the president accountable by ensuring the implementation of the policy.
The Revenue Mobilisation Allocation and Fiscal Commission, which have been leading the advocacy for reduction in day-to-day government expenditure, described the term “cost of governance” as any expenses related to the operation and functioning of the government. It is the expenses incurred by the government in the process of delivering goods and services to the citizens.
It is important to note that many developing countries are making concerted efforts to reduce the cost of governance and conserve funds for infrastructure development that would have positive impact on the lives of their citizens. India, for instance, implemented e-governance in administration to lower the operational costs of its government. Similarly, Ethiopia, Thailand, Kenya, Ghana, and Rwanda choose to reduce the number of political appointees engaged in administrative activities.
As the largest economy in Africa, Nigeria should take the lead in the campaign to reduce the cost of governance, and the decision to implement a 60% cut in travel expenses is commendable, especially considering the current economic trajectory.
Here are some additional measures that the government can implement to reduce the cost of governance.
Streamlining Bureaucracy: Reducing the number of government ministries, departments and agencies (MDAs) can help cut down on administrative costs. MDAs with similar functions should be merged to avoid duplication of responsibilities.
Salary Rationalization: Reviewing and optimizing the salary structure of public officials especially the executive arm of government to ensure fairness, including basic salaries, allowances, bonuses, and other financial benefits and eliminate unnecessary financial burdens.
Public Sector Reforms: Implement reforms in the public sector to enhance efficiency, reduce redundancy, and ensure a more cost-effective government. This should include the use of technology to automate processes, reduce paperwork, and enhance efficiency in service delivery.
Public-Private Partnerships (PPPs): The government should engage in partnerships with the private sector to share the burden of infrastructure development and service provision.
Audit and Accountability: Regular audits should be conducted to identify and address financial inefficiencies, waste, and corruption. Personnel audit should also be carried out to eliminate ghost workers.
Citizen Engagement: Involving citizens in decision-making processes is another way to prioritize public spending and ensure accountability.
Writing by Jennifer Ogor; editing by Annabel Nwachukwu
