Nigeria has a democratic system of government that is patterned after that of the United States of America. However, the cost of governance in Nigeria recently attracted several comments from stakeholders in the nation?s economy who expressed concerns as regards how best the prevalent wastage by government could be curtailed and translated into generally improved living standards for the citizenry.
Nigeria?s democracy has been described as the most expensive in the world with minimal evidence in terms of infrastructure development, poverty level and pace of general economic growth. For instance, the United States of America with a higher population and higher number of states than Nigeria, has 12 federal Secretaries (ministers) and ministries as against Nigeria?s over 40 ministers and ministries. The US economic growth plan is very specific, articulate, people-oriented and less expensive while policies are implemented in the national interest even in the midst of global economic uncertainties. Results of highly monitored expenditure of public funds are visible. This is not the case with Nigeria where a federal legislator earns higher than the President of the United States of America, even with so little input. The Speaker of the Federal House of Representatives, Mr. Aminu Tambuwal recently lamented that about 50% of the nation?s revenue in 2012 budget was spent by federal government agencies illegally. This came with minimal results in terms of living standards of the majority of citizens.
Amidst the level of poverty in the land, irrelevant contracts worth billions of naira are being awarded by the federal government. A good example is the N2.2 billion contract that was recently approved by the Federal Executive Council for the construction of a 150-seater banquet hall and other related works in the Presidential Villa. This is expected to replace an already existing banquet hall. Some awarded contracts have been abandoned while monies for jobs not done have been paid. In June 2012, the Vice-President, Mr. Namadi Sambo is reported to have revealed that over 12,000 federal projects worth N7.8 trillion had been abandoned.
The volume of wastage in the system is so enormous. There is no news in the fact that at many of the nation?s local government councils, their payrolls are over bloated with staff, most of who only visit their secretariats at the end of the month to receive salaries for no work done. A number of State Governors have over 500 aides.
According to the Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, government is spending 70% of the nation?s revenue on itself, leaving 30% for the people. He had earlier disclosed how 25% of the nation?s entire budget was spent on the National Assembly and its members alone. He stressed that the country cannot develop if it continues to spend so much of its resources on personnel.
?This is a country where we have 774 local governments. In each council, you have a chairman and a vice chairman and maybe 10 councillors plus their aides. The constitution says there must be a minister from every state of the federation, but let me ask you, as intelligent and educated human beings, what is the connection between the number of ministries at the federal level and the number of states??So, if you have 50 states today, you must have 50 ministries? If you have 100 states, you must have 100 ministries?? queried the CBN Governor.
Stakeholders are of the opinion that there has to be a downsizing template for all tiers of government and this move has to begin with the constitution. Mr. Sanusi shares the view that it is?impossible for the country to develop under the current constitution unless it is amended and that the federal character principle accounts for the overbloated staff of various government establishments.
The federal character principle equally informs the indiscriminate award of contracts, some of which are aimed at merely pacifying people, and this encourages corruption. To reduce the cost of governance therefore, the issue of duplication of government agencies and the federal character principle that places state of origin above merit should be addressed by the on-going constitution review by the National Assembly.
The amended constitution should insist on the practice of true federalism as the federal government is currently too powerful. The revenue derivation formula has rendered several state governors intellectually lazy as they simply collect the revenues and squander them while poverty level keeps increasing across the states.
A federal government policy backed by an Act of Parliament should make it compulsory for each state Governor, Local Government Chairman and other key public office holders to own very large acres of farmland, producing crops in commercial quantities. This will drive interest in agriculture, create employment, increase local food production and push down prices of food items for the good of the entire residents of Nigeria.
Section 7 (1) of the 1999 constitution allows for an elected administration in the local government councils. But in practice, most of the councils in Nigeria are administered by state governors through their appointed chairmen of caretaker committees. This has resulted in what could be described as an abysmal appeasement and patronage of underdevelopment at most of the local governments while some state chief executives add local government allocations from the federal government to their loot. Local government autonomy should not stop at finances. Rather, the autonomy should cover elections into the councils while this grassroots government should be allowed to originate and execute infrastructure development projects without external interference to enhance efficiency in governance and achieve people oriented results.
Federal legislators and ministers should be paid based on federal civil service salary structure while their counterparts at the state levels should be placed on their respective states civil service salary grades. This will help to make the offices less attractive and get their occupants more committed to the serious business of good governance.
A conducive environment should be created for the private sector to create more jobs and fuel economic growth. This cannot be achieved without reliable electricity power.??The President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. Herbert Ajayi recently revealed that no fewer than 800 companies in Nigeria closed shop between 2009 and 2011 due to harsh operating business environment, adding that that capacity utilization in industries hovered around 30% and 45% on the average, with 100% overheads while manufacturing industry operates on more than 70% of energy it generates, using generators.
It is cheering to hear from Vice President Sambo that power distribution under the on-going power reforms has moved beyond 4,000 megawatts from the 2,500 megawatts that it was when President Goodluck Jonathan assumed office. A reliable power supply system will automatically revive dead businesses and create thousands of Small and Medium Scale Enterprises (SMEs) which would result in a drastic reduction in the current unemployment rate. Besides, skills acquisition will improve as more electronic technicians, battery chargers, hair stylists, fashion designers and other categories of skilled workers would be able to function optimally, thereby enhancing productivity and manpower utilization.
To attract more local and foreign investors into the economy, there is need to improve security in the country, prosecute and punish law breakers to serve as deterrent to potential offenders.
To secure Nigeria?s economic future and reposition the country for attainment of its economic goals and competition in the global market, it is necessary for the government to as a matter of urgency, reduce the cost of governance.
ALBINUS CHIEDU
CEO, OUTPUT COMMUNICATIONS
29, ADENIYI JONES AVENUE
IKEJA, LAGOS
