RMAFC faults high cost of governance, seeks better prudence

● Cost of governance in Nigeria among highest in Saharan Africa, says agency
● Lead by example, League of Northern Democrats charges President
● Presidency defends Tinubu’s refurbished jet as cost-saving
● Borno Speaker urges FG to acquire new aircraft for Shettima

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) appeared to have spoken from both sides of its mouth yesterday when it criticised Nigeria’s cost of governance, describing it as one of the highest in Saharan Africa while at the same time praising the current government as an example of cost-cutting measures.

The Commission, which said the high cost of governance has significantly hindered the government’s ability to fulfil its primary role of development, described the situation as alarming and unsustainable.

It noted that the scenario continues to generate public concern due to its negative impact on investment, industrial expansion, infrastructure development, and the growth of the real sector of the economy.

The Commission also urged state governments to follow President Bola Tinubu’s recent directive to reduce the size of official convoys for ministers and senior government officials as part of efforts to lower the cost of governance.

RMAFC Chairman, Dr Muhammad Bello, commended the President’s initiative in a statement, noting that reducing government expenses could help address key national issues such as infrastructure deficits, unemployment, and insecurity.

Bello stated that the ongoing challenge of high governance costs in Nigeria has impeded the government’s ability to deliver essential services and promote sustainable development, thereby straining public funds.

He called on all levels of government to adopt cost-effective strategies to ensure the optimal use of resources for the benefit of citizens.

Bello further noted that President Tinubu’s directive is an important step towards reducing the cost of governance, which affects investment, industrial growth, and public service delivery. He pointed out that the high operational costs of the Nigerian government are influenced by factors such as large bureaucracies, duplication of ministries, departments, and agencies (MDAs), and widespread corruption.

He recommended reducing the number of political appointees, as suggested in RMAFC’s remuneration package for political and public office holders, and ensuring prudent spending of public funds at all levels.

Bello expressed concern that all three arms of government contribute to the high cost of governance, a position RMAFC has consistently highlighted through various forums and presentations.

He emphasised that the high cost of governance has hindered Nigeria’s ability to provide critical services such as infrastructure development, quality healthcare, and improved education.

He added that addressing the high cost of governance would help reverse the decline in infrastructure and social services and mitigate the negative effects on investment, unemployment, and rising insecurity. He stressed that no society can achieve meaningful progress without a competent and cost-effective management system that maximises national resources for the benefit of all.

Bello recalled that over the years, RMAFC has consistently advocated for reducing governance costs to preserve resources for sustainable development. The Commission has offered several recommendations to the government at all levels, emphasising the need to cut unnecessary expenditures and closely monitor spending on developmental projects that would positively impact citizens’ lives.

According to Bello, Nigeria’s high cost of governance is driven by the expense of maintaining large bureaucracies, duplication of MDAs, and entrenched corruption. He added that other contributing factors include the high cost of public service delivery due to infrastructure failures, elevated security expenses stemming from insurgencies, kidnappings, ethno religious conflicts, and armed robbery, multiple salaries, severance allowances, extravagant spending, high domestic and foreign debt, and weak enforcement mechanisms.

Maryam Umar Yusuf, Head of Information and Public Relations, quoted Bello as advocating the immediate implementation of the Orosanye report, as previously intended by the administration, to effectively reduce the high cost of governance in Nigeria.

HOWEVER, the League of Northern Democrats urged President Tinubu to lead by example in the Federal Government’s efforts to reduce the cost of governance.

The League, a political movement, said: “Leadership is all about inspiration. It’s not an inverted pyramid. You need to lead by your actions and set the best example,” the group’s spokesperson, Ladan Salihu, said during the weekend edition of Channels Television’s Sunrise Daily.

“You cannot justify purchasing a presidential jet for N170 billion and a yacht for N5 billion while implementing cost-saving measures. Combined, these expenses are substantial, making the gesture merely symbolic,” Salihu added.

Tinubu’s directive to ministers has sparked widespread debate among Nigerians, with the presidency portraying it as an attempt at leading by example. However, Salihu remains sceptical about the measure’s effectiveness and has raised concerns regarding its implementation.

“When you say ministerial convoys are reduced to three vehicles, as a journalist—let me use this term loosely—I would ask, ‘What happens to the remaining vehicles?’” Salihu remarked.

“Where will they be kept? Are they going to be stored in a garage? The vehicles have already been purchased. So, if I am a minister with 10 vehicles, I would still retain seven,” he explained.

Salihu expressed doubt that this change would significantly alter the size of ministerial convoys. “In my view, we are not about to witness a drastic reduction in the number of vehicles used in ministerial convoys,” he said.

“Do not expect to see a minister travelling with just three vehicles. It won’t happen. If someone tells me it will happen, or if someone tells you it will happen, we are only deceiving ourselves,” Salihu concluded.

THIS came as presidential spokesman Bayo Onanuga said contrary to popular opinion, President Tinubu did not acquire a new official jet but a refurbished one.

“It’s not President Tinubu’s plane; it belongs to the people of Nigeria; it is our property,” Onanuga said on the Sunday edition of Inside Sources with Laolu Akande, a socio-economic programme aired on Channels Television.

He said some jets in the presidential fleet, such as a 19-year-old Boeing B737-700 purchased under ex-President Olusegun Obasanjo, are in poor condition, and their maintenance costs are exorbitant. Hence, instead of spending a large amount of money on aircraft maintenance, the President sought the approval of the National Assembly for a refurbished jet that is still in good condition.

Onanuga said the refurbished Airbus A330 would save Nigeria significant maintenance costs compared to servicing the old aircraft.

Onanuga urged Nigerians to prioritise the President’s safety.

The presidential spokesman said Tinubu wouldn’t take the recently acquired jet with him when he leaves office, adding that the plane would also benefit Tinubu’s successor.

Onanuga said, “The President did not buy a new jet; what he has is a refurbished jet—it has been used by somebody else before he got it, but it is a much newer model than the one President Buhari used.

“The one President Buhari used was bought by President Obasanjo about 20 years ago. There was a time the President went to Saudi Arabia; that plane developed some problems, and the President had to leave with a chartered jet to The Netherlands.”

The spokesman said he spoke with the National Security Adviser (NSA), Nuhu Ribadu, about the faulty plane, and he said the maintenance costs due to the plane’s age were exorbitant, hence the need for another plane.

“People should try to prioritise the safety of the president. I’m not sure anybody wishes our President to go and crash in the air. We want his safety so that he can hand over to whoever wants to take over from him,” Onanuga said.

While the Presidency has continued to defend Tinubu’s decision to purchase the refurbished Airbus A330, the move has been criticised by many Nigerians and some of his contenders in the 2023 election, who felt the President was insensitive to the plight of poor Nigerians struggling with unprecedented food inflation and energy prices, which have quadrupled in the last year.

RELATEDLY, Borno State House of Assembly Speaker Abdulkarim Lawan called on the Federal Government to procure a new aircraft for Vice President Kashim Shettima, citing safety concerns arising from multiple technical issues with his current designated plane.

Lawan expressed concerns about Shettima’s safety as he continues representing President Bola Ahmed Tinubu at international engagements despite recent aborted flights.

On September 24, 2024, during a trip to Samoa for the Commonwealth Heads of Government Summit, Shettima’s journey was abruptly cancelled when his plane, during a stopover at JFK Airport, sustained damage after being struck by a foreign object that impacted the cockpit windscreen.

Earlier this year, the House of Representatives Committee on National Security and Intelligence recommended purchasing new aircraft for both the President and the Vice President. However, while the President’s aircraft was replaced, Shettima relied on the older, malfunction-prone plane.

In a statement, Lawan expressed relief that Shettima and his team were unharmed during the recent incident. He called for the U.S. government’s “thorough and timely investigation” into the incident at JFK Airport, highlighting the security implications, even at one of the world’s most secure airports.

“The Vice President’s life and that of his team remain at risk with the continued use of an unreliable aircraft. I urge the Federal Government to prioritise acquiring a new plane for Vice President Shettima to prevent further incidents,” Lawan said.