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The recent call for the reduction of the cost of governance by the Speaker of the House of Representatives, Femi Gbajabiamila, is commendable. The speaker had argued that a drastic reduction in the cost of governance would be one of the measures to kick-start the country’s economic recovery. There is no doubt that the impact of the Coronavirus pandemic has equally underscored the urgent need to drastically cut the cost of governance, especially in an economy that depends so much on crude oil. It is worth mentioning that the poor delivery of democracy dividends has been traced to rising cost of governance.
We agree with the Speaker that the COVID-19 pandemic has offered the country the best opportunity to reduce the cost of governance and fully diversify the economy. For this objective to be realised, it has become expedient to cut the cost of governance at all levels. Therefore, we urge the federal lawmakers, including the leadership of the two legislative chambers, to lead by example by voluntarily reducing their emoluments. Most Nigerians believe that the amount spent to run the National Assembly is humongous. They also believe that our legislators earn the highest pay in the world. Although the federal legislators recently agreed to cut their March salary by 50 per cent, it is not enough. The truth is that the economy is not in a position to maintain the jumbo salaries and allowances of the lawmakers any longer.
It is good that the pandemic is serving as a wake-up call on the government to reduce our bloated bureaucracy and delete expenditures on the recurrent budget that have made our democracy too expensive. It is heartening that President Muhammadu Buhari has approved the implementation of the Steve Oronsaye report on the rationalisation of government agencies. The report of the Committee, which was set up by former President Goodluck Jonathan, was almost consigned to the archives until the advent of the COVID-19 pandemic.
Nevertheless, it is good that the Federal Government is revisiting the recommendations of the committee at this auspicious time that our economy is in a precarious situation. The committee had recommended, among other things, a drastic reduction in the number of statutory agencies from 263 to 161, and the merging of Ministries, Departments and Agencies (MDAs) that have overlapping functions. We believe that the initiative will address the high cost of governance.
Last year, President Buhari cut cost of governance by slashing estacodes enjoyed by government officials and the size of delegation for ministers. To that effect, all public-funded travels (local and foreign) were restricted to official purpose and supported by well-conceived evidence. For the cost of governance to be meaningful, we suggest that the presidency and state governors must also set example by slashing their security votes and other avoidable expenditures. The 2020 financial estimate shows that the President and Vice President will spend N4.2billion. Out of this amount, travel will gulp N3.3billion, while catering will cost N149.1billion.
The time for a drastic cut in the cost of governance is now because the economy can no longer support the opulence of our political officeholders. Good enough, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is considering a downward review of the remuneration and allowances of political officeholders to reflect the present economic realities in the country.
Now that the government has slashed the estacodes of ministers and the size of their delegation and the travel plans for MDAs, there is need to streamline the wages and allowances of political officials and workers in certain government organisations, ministries and departments.
The Presidential Committee on the review of salaries of political officeholders should go a step further and reduce other factors that contribute to high cost of governance. There is need to adhere strictly to approved remuneration of political officeholders. Statistics show that between 2014 and 2018, the 36 states in the federation budgeted over N14 trillion for salaries, allowances and overheads. In 2015, the International Monetary Fund (IMF) advised the government to reduce high cost of governance and end what it called the “financial recklessness of those in political office.” That advice is still relevant.
