The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has issued a strong warning about the high cost of governance in Nigeria.

It attributed the high cost of governance to several factors, including the expensive presidential system, a bloated bureaucracy with overlapping ministries, and widespread corruption.

RMAFC chairman, Mohammed Bello Shehu, in a statement issued in Abuja on Sunday, March 10, said the issues are draining public resources and hindering economic development.

He pointed out that the excessive spending on administration far outpaces investments in crucial areas like infrastructure and industrial expansion.

According to him, the imbalance hurts the real sectors of the economy, ultimately impacting the lives of everyday Nigerians.

Shehu highlighted several other contributors to the high cost of governance to include inefficient public service delivery due to poor infrastructure; high security costs arising from insurgencies, kidnappings, and other security threats; excessive payouts in salaries, severance packages, and allowances; Extravagant spending by government officials; crippling burden of domestic and foreign debt and weak institutions that struggle to enforce regulations.

The RMAFC chairman expressed hope for positive change.

He commended the Tinubu administration for embracing the Oronsanye Report, a blueprint for streamlining government agencies.

He believes the report’s full implementation can significantly reduce administrative costs, freeing up funds for vital infrastructure projects that benefit Nigerians directly.

Shehu also applauded the government’s current economic and monetary reforms. He praised the focus on maintaining stable prices and exchange rates, which he sees as essential for sustainable economic growth and protecting Nigerians’ livelihoods.

These policies, he argues, will help curb inflation’s damaging effects.

Price stability allows Nigerians to plan their finances more effectively and protects the purchasing power of the Naira.

A stable exchange rate fosters investor confidence and minimizes uncertainties in the foreign exchange market. This, in turn, attracts foreign investment, improves financial inclusion, and creates a more predictable environment for businesses.

The RMAFC also commended the ongoing reforms in the Bureau De Change (BDC) market. These reforms aim to establish transparent operations in line with international best practices. This will increase trust among businesses, regulators, and the public. A well-organized BDC market with clear procedures plays a crucial role in maintaining a credible foreign exchange system.

The RMAFC chairman urged the government to strengthen cooperation between monetary and fiscal authorities. He believes that by working together and implementing the Oronsaye Report alongside ongoing structural reforms, Nigeria can achieve a more stable exchange rate, control inflation, and create a more business-friendly environment for all.

Shehu further advised that the committee overseeing the Oronsaye Report’s implementation consider agencies established since the report’s initial publication in 2014 to ensure a comprehensive overhaul that maximizes savings for infrastructure development.

He called on the federal government and states to use the increased allocations from the Federation Accounts Allocation Committee (FAAC) wisely.

“These additional funds should be used to provide adequate support to the Nigerian people, particularly those struggling with the effects of subsidy removal,” he said. (The Nation)

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