RMAFC applauds Tinubu’s cost-cutting measures, urges states to do same

By Kunle Sanni

Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commended President Bola Tinubu’s recent directive to reduce the size of official convoys for ministers and chief executives, describing it as a crucial step in lowering governance costs.

In a statement on Saturday, RMAFC Chairman Dr. Muhammad Shehu Bello urged state governments to adopt similar cost-cutting measures, emphasizing the need to curtail unnecessary expenses and redirect resources toward national development.

Dr. Shehu noted that high governance costs have historically impeded Nigeria’s progress by diverting funds from infrastructure, social services, and investments, thereby exacerbating issues such as unemployment and insecurity.

Dr. Shehu identified an oversized bureaucracy, overlapping government ministries, and redundant agency roles as primary drivers of excessive spending. These issues, coupled with pervasive corruption and weak regulatory frameworks, have led to significant waste in public finances.

He noted that RMAFC has long advocated for measures to reduce governance costs, not only to safeguard resources but also to enhance sustainable development. Over the years, the Commission has presented recommendations to all government levels, urging them to eliminate wasteful spending and carefully monitor developmental project expenditures to ensure tangible benefits for citizens.

According to Dr. Shehu, the cost of governance is further inflated by infrastructure failures, security challenges, multiple salary structures, extravagant expenditures, rising domestic and foreign debts, and ineffective regulatory bodies.

“The high cost of public service delivery is exacerbated by infrastructure breakdowns, security expenses due to insurgency, kidnapping, ethnoreligious tensions, and armed robbery,” he said. “Additionally, multiple salaries, severance allowances, and excessive spending on ceremonial activities all strain national resources.”

The Commission lamented the unsustainable nature of Nigeria’s governance costs, describing them as alarming and a hindrance to investment, industrial growth, and infrastructure development. Public concern over this issue has intensified, given its negative effects on economic growth and public welfare.

“The fact that all three branches of government contribute to this issue is particularly troubling,” Dr. Shehu added. “RMAFC has repeatedly highlighted Nigeria’s excessive governance costs at various forums. Nigeria ranks among the highest in Sub-Saharan Africa in this regard, impeding its capacity to deliver critical services such as infrastructure, healthcare, and quality education.”

To address these challenges, the Commission recommends immediate implementation of the Orosanye report, which proposes streamlining the public service. It also urges a reduction in political appointees, as outlined in RMAFC’s remuneration guidelines for Political and Public Office Holders, and calls for prudent spending across all government levels.

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