The undue proliferation of MDAs

The revelation by former President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, that Nigeria now has over 900 Ministries, Departments and Agencies costing the nation more than N862 billion annually is most distressing. It is yet another reminder that government has become too large, too expensive and increasingly unsustainable. No country battling fiscal distress can afford the luxury of a bureaucracy that grows faster than its economy. What was originally conceived as machinery for effective public administration has gradually morphed into a sprawling network of overlapping entities that now consume enormous public resources while delivering diminishing value to citizens. This unchecked proliferation of government agencies has created a regulatory maze that discourages investment, undermines ease of doing business and weakens economic growth.

Oye is right in drawing attention to the enormous cost of maintaining these agencies and the urgent need to implement the recommendations of the Stephen Oronsaye Presidential Committee on the Rationalisation and Restructuring of Federal Government Parastatals, Commissions and Agencies. We share his concern. The consequences of maintaining hundreds of overlapping agencies go beyond bloated recurrent expenditure. They encourage corruption, duplication of responsibilities, bureaucratic delays and institutional inefficiency. Every new agency created requires office accommodation, governing boards, chief executives, directors, staff, official vehicles, overheads and other recurring costs. These expenditures continue to rise even as government struggles to finance critical sectors such as education, healthcare, agriculture and infrastructure.

The irony is that government is not unaware of the problem. The Oronsaye Committee, inaugurated in November 2011, conducted one of the most comprehensive reviews of Nigeria’s public institutions. After painstaking work, it recommended the scrapping, merger or restructuring of several agencies to eliminate duplication and significantly reduce the cost of governance. The report has remained one of the most practical blueprints for public sector reform.

In 2023, the Federal Government approved aspects of the report and announced plans to implement some of its recommendations. That decision generated considerable optimism that Nigeria was finally prepared to confront one of the biggest drains on public finances. Sadly, that optimism has faded. Implementation has stalled while the number of federal agencies has reportedly continued to increase, reaching over 900. This contradiction raises serious questions about government’s commitment to fiscal discipline and administrative reform.

The effects of overlapping mandates are visible across several sectors. The recent activities of the Federal Competition and Consumer Protection Commission (FCCPC), the National Agency for Food and Drug Administration and Control (NAFDAC), and the Standards Organisation of Nigeria (SON) during regulatory actions involving food manufacturers at Awada in Onitsha once again highlighted the confusion created by multiple regulators operating within the same space. While each agency has statutory responsibilities, their functions frequently intersect in ways that create uncertainty, duplicated inspections and additional compliance costs for manufacturers.

Food manufacturers should not be compelled to shuttle endlessly among several agencies performing similar oversight functions. Such multiplicity of regulators increases operational costs, encourages rent-seeking and complicates legitimate business activities.

Nigeria already operates one of the world’s most expensive systems of governance. The country maintains a presidential federal system alongside a bicameral National Assembly that consumes enormous public resources. This structure is complemented by numerous federal ministries, departments and agencies, many with overlapping responsibilities. Similar bureaucratic duplication is replicated across the 36 states, where ministries, agencies and political appointments continue to expand despite severe fiscal constraints.

Additionally, Nigeria has 774 local government councils, constitutionally established to bring governance closer to the grassroots. Unfortunately, despite receiving substantial statutory allocations, the overwhelming majority of these councils have been prevented from functioning effectively because of undue interference by many state governments. Consequently, citizens bear the financial burden of maintaining multiple layers of government without enjoying the corresponding benefits of efficient service delivery.

This situation is no longer sustainable.

At a time when government continues to seek new loans, increase taxes and remove subsidies in the name of fiscal reforms, it cannot justify maintaining an unnecessarily bloated bureaucracy that consumes scarce resources better deployed to productive sectors of the economy. Implementing the Oronsaye Committee’s recommendations offers perhaps the most realistic pathway towards reducing the cost of governance, eliminating overlapping institutions and improving public sector efficiency. The reforms may face resistance from vested interests, but national interest must prevail over bureaucratic self-preservation.

The Federal Government should therefore commence the full implementation of the committee’s recommendations without further delay. Rationalising government agencies will not only save hundreds of billions of naira annually but will also simplify regulation, improve the business environment, strengthen institutional accountability and restore public confidence in governance. Nigeria cannot continue to sustain a 900-headed bureaucratic monster while pleading poverty. Every naira wasted on duplicated agencies is a naira denied to schools, hospitals, roads, electricity and job creation. The Oronsaye Report remains the best available roadmap.