RMAFC Backs Tinubu On Cost of Governance Reduction
- Lauds President over report implementation
- Blames corruption for poor service delivery by MDAs
BY COBHAM NSA – The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has backed President Bola Tinubu for adopting the Oronsanye Committee Report as part of measures to reduce cost of governance in the country.
According to the Commission, no society can make meaningful progress unless it develops a competent and cost-effective management system capable of maximizing the nation’s resources to the benefit of all
Consequently, the Commission canvassed that the restructuring and rationalizing existing Federal agencies, parastatals and commissions will ultimately curb the unsustainable high costs in running government business.
Chairman of the Commission, Mr. Mohammed Bello Shehu, who appreciated the Federal Executive Council (FEC) for approving implementation of the Oronsanye’s report, also blamed the high cost of governance for the reduction in the provision of infrastructure and social services as well as the consequent fall in investment, high level unemployment and rising insecurity in the country
Shehu recalled that the RMAFC has over the years always canvassed a reduction in cost of governance as a way of preserving scarce resources for the sustainable development of the country.
He said the Commission has consistently proffered far-reaching suggestions and recommendations to governments at all levels on the need to scale down on unnecessary expenditure while monitoring expenses on developmental projects that would impact positively on the lives of the citizenry.
The RMAFC boss attributed the high cost of governance in Nigeria to the expensive nature of the presidential system of government, large bureaucracy, duplication of government Ministries, Departments and Agencies (MDAs) as well as endemic corruption in the system.
He also listed other factors to include high cost of public service delivery due to infrastructure failure; high-security costs as a result of insurgencies; kidnappings; ethno-religious agitations; and armed robbery; multiple salaries and severance allowances.
Similarly, Shehu said extravagant activities and expenditures; high domestic and foreign debts; and weak enforcement institutions have also contributed to the problems militating against socioeconomic growth and development in the country.
He noted that over the years, cost of governance has been very high, alarming and therefore unsustainable as recurrent expenditure continues to significantly exceed capital expenditure thus negatively impacting on investment, industrial expansion, infrastructural development and growth of the real sectors of the economy.
Shehu expressed confidence that adopting the Oronsanye report for implementation would drastically reduce the cost of governance and conserve funds for infrastructural development meant to positively impact on the lives of the citizens.
On current fiscal and monetary reforms being pursued by the current administration, the Commission boss lauded the policies of prioritizing price and exchange rate stability to promote sustainable economic growth, and safeguarding the livelihoods of Nigerians.
For him, such policies will play a crucial role in cushioning the impact of hyperinflation in the economy, adding; “The RMAFC sees price stability and exchange rate stability as good policies in the right direction. The price stability preserves the purchasing power of the national currency, provides confidence to the investors and assists the citizenry to plan their spending and savings more effectively”.
Further praising President Tinubu- government for introducing policies aimed at reorganizing the Bureau De Change Market to achieve transparent market operations in line with International Best Practices, the Commission’s Chief Executive said; “The policy will enhance credibility, transparent operations and build trust among market participants, regulatory authorities, and the public.
“A reorganized BDC market with clear and open processes contributes to the credibility of the foreign exchange system”.
He also defended the policy as having capacity to reduce exchange rate volatility, minimize uncertainties in the foreign exchange market, attract direct foreign investment, improve financial inclusiveness, reduce speculative activities, improve regulatory oversight and ensure effective monetary policy implementation.
“When stakeholders have access to accurate information about market conditions, it can lead to more stable exchange rates, reducing volatility and providing a more predictable environment for businesses and investors”, the RMAFC chairman said.
Also urging the administrstion to consolidate the synergy and coordination between monetary and fiscal authorities, Shehu said; “The country can be assured that through the coordination of policies and the current structural reforms, implementing Oronsanye’s report will bring a more stable exchange rate, control inflation, reduce the cost of governance, and create an enabling environment for businesses and individuals to thrive”.
He also tasked the Committee on Oronsanye’s Report implementation to equally consider the duplication of agencies, especially those agencies created after the report between 2014 to date, adding that a transparently holistic exercise will save funds for infrastructural development in the country.
On cushioning the adverse effects of subsidy removal, Shehu urged both the Federal and State governments to judiciously utilize the increased allocations from the monthly Federation Accounts Allocation Committee (FAAC) to provide adequate palliatives to the teeming masses in the country so as to alleviate their suffering.
