Regulators worry about impact of subvention withdrawal on operations

Surveyors Council of Nigeria (SURCON) building in Abuja.

Operators in the building sector have expressed worries that the Federal Government’s discontinuation of funding for professional bodies in the country will hamper ability to effectively carry out constitutional roles and responsibilities.

They said the Federal Government’s withdrawal would weaken their power and expected performance, as well as policing roles in the building and construction sector. They observed that regulatory bodies worldwide are independent, transparent, fair and firm, adding that when regulators begin to solicit funds from registered individuals; their ability to enforce regulations and sanctions may be weakened.

The bodies identified with the government’s desire to redirect expenditure to crucial and critical areas, however, believe that they can still be funded due to their responsibilities in national development, which must not be compromised.

They, therefore, urged the government to give them the opportunity to submit proposals that would not encumber the national budget but enforce regulatory functions and strengthen practices, as their role and place in nation’s building cannot be over-emphasised.

The Federal Government had through a circular from the budget office dated June 2023, conveyed the decision of the presidential committee on salaries to discontinue budgetary allocation to professional bodies and councils. The personnel, overheads and capital expenditures of the professional bodies and councils are expected to be self-funded from 2024.

Over 30 professional bodies and councils in the country are affected in the recent move, which the government referred to as a cost-cutting measure. Those affiliated to the building industry and environment sector that are fully funded include Survey Council of Nigeria, Council for the Regulation of Engineering in Nigeria (COREN) and National Council on Climate Change.

Other professional bodies not under the budget like Council of Registered Builders of Nigeria (CORBON), Architects Registration Council of Nigeria (ARCON), Town Planning Registration Council (TOPREC), Estate Surveyors and Valuers Registration Board (ESVARBON) are also jittery that the subvention they receive for capital projects may also be discontinued.

The Guardian gathered that one of the affected councils got N2.4 billion for the 2022 fiscal year, while it spent N1.2 billion to organise yearly conferences. It was further learnt that some of the professional bodies receive huge funding from the yearly federal government budget and fail to remit proceeds or sometimes remit very low funds to federation accounts, hence the justification to discontinue them from the federal budget.

Speaking on the development, CORBON Chairman, Dr. Samson Opaluwah, advised the government to attach funding to specific regulatory responsibilities, which the professional bodies carry out, as a means to understand their role in governance and national development. This, he said, will clearly show the gaps that will ensue if the bodies are unable to function effectively.

He explained that the directive to stop funding came at a critical time, when the regulatory Act, the Act B13LFN 2004 confers a lot of responsibilities on CORBON to regulate the building industry, which will require funding to carry out effectively.

The chairman said: “In the past one year, we have launched an outfit called Projects Monitoring and Evaluation Unit (PEMU) to inspect building sites all over the country, evaluate and monitor compliance with the planning approvals and the national building code. To carry out such functions nationwide requires huge funding, which will be hampered by lack of government funding.

“This function, which is the public safety and awareness responsibility of the council like others in the pipeline, will require funding to be effective and efficient.

“Of course, it will affect our programmes. PEMU will be hampered; our accreditation visits to universities and polytechnics offering our programmes will be affected and the rate at which we roll out regulations will also be affected.

“Building collapse, for instance, is a national challenge, which the council is addressing frontally in multiple dimensions such as site inspections, support to planning and development agencies nationwide, capacity building of artisans and building professionals, production of construction management tools and publication of regulations to govern building sites. All these require funding and they are very necessary for national development.”

“As committed patriots and professionals, we must join hands with the government in finding a way forward. Our council, before now, had been grappling with inadequate funding of our activities. A crack team of experts in our midst is working out strategies for raising funds without compromising our regulatory functions.

“However, government funding will still be a big relief to us, as it will guarantee independence for our actions and activities. Funding regulatory bodies comes with responsibilities.”

He revealed that CORBON for instance, could be financed by deductibles from government building contracts, charges on property developers, building materials producing companies and consulting services on government buildings.

This, he said, will remove the burden from the national budget and at the same time ensure independence of CORBON to regulate the industry in a fair, firm and uncompromising way.

On whether the development may become a burden to registered builders, he said: “Registered builders are not members of CORBON, as in an association or institute. A regulatory body does not have membership but a register of those it had considered worthy of practicing as professionals. These registered builders are part of the council’s regulatory oversight; it will, therefore, be an irony to ask them for funding beyond their normal licensing fees.”

The Registrar, Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), Ifeanyi Uzonwanne, said if the source of funding for certain professional bodies is stopped, it will strangle the organisations and make matters worse.

He said: “When you are financially healthy, it can help you to do what the law has set you up to do effectively and if you don’t have the resources, definitely, it will affect the regulation and control of the practice, which the law has set you up to do.”

He disclosed that ESVARBON and four other regulatory boards, for instance, which are a creation of law, are not on the budget line but get grants, which is a token sum of money in recent times.

Uzonwanne explained that the subvention is only geared towards capital projects and we are accountable to the government on how it is utilised. He said the emphasis of the new policy is only for professional bodies that are on the budget line.

On the danger ahead if such decision is carried out, he asked: “If you continue to rely on the person you regulate for your survival, would it not impair on effectiveness in performing those roles you are mandated to play,” adding, “Now, one has to be strategic in terms of sourcing for funding.”

However, a council member, COREN, Babagana Mohammed, differed in his views. He said the development may not interfere with the function of the regulatory organs but noted that they will have to work harder to justify confidence reposed in them as professional bodies.

He said: “Any professional body under every law is supposed to generate what it can to run the organisation because when you wait for the government to generate money, then you are no more at liberty to do what is professionally right.

“Interference may also come in, but with this development professional associations will have to use their ingenuity to look for money. Now, they will have to only prioritise projects or whatever programmes that they will be able to carry out and sustain it.”

Mohammed stressed that the policy won’t be a burden to professional members, as leaders of the bodies will have to bring to the fore their professional competence to finance their activities.

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