The recent directive issued by President Bola Tinubu, which restricts ministers, ministers of state, and heads of agencies to a maximum of three vehicles in their official convoys, represents a bold and commendable initiative aimed at reducing the cost of governance in Nigeria. This move, designed to curtail unnecessary expenses, is anticipated to have a positive ripple effect on the nation’s economy.
By capping the number of security personnel assigned to these officials to five—comprising four police officers and one Department of State Services (DSS) officer—the government underscores its commitment to cutting costs while simultaneously enhancing economic efficiency. This decision is especially significant in light of the current economic challenges faced by the country, as it reflects a proactive approach to governance that prioritises fiscal responsibility.
In January, President Tinubu took further decisive action to rein in government expenditure by reducing his entourage on foreign trips from 50 to 20 officials and limiting local trips to 25 officials. Similarly, the Vice President’s entourage was trimmed down to five officials for foreign travel and 15 for local trips. These measures not only signify a tangible effort to address the nation’s economic woes but also send a strong message about the need for austerity in governance.
To continue this trajectory of cost reduction, the Nigerian government can explore additional strategies that promote economic prudence. One effective approach would be to merge Ministries, Departments, and Agencies (MDAs) with overlapping functions. By eliminating duplication of efforts and wasteful expenditures, Nigeria could streamline operations significantly. For instance, the National Salaries, Incomes, and Wages Commission estimated that merging or abolishing redundant agencies could save the country approximately N1 trillion.
Implementing e-governance is another viable option that can yield substantial benefits. By adopting digital solutions, the government can streamline operations, reduce paperwork, and enhance transparency. According to a report by the World Bank, every dollar invested in digital transformation generates an average return of $3.50 in economic benefits. Such investments can not only improve government efficiency but also foster an environment conducive to innovation and growth.
Reducing the number of political appointees is also critical for enhancing economic prudence. Limiting the number of special advisers, assistants, and other political appointees can alleviate the financial burden associated with maintaining a bloated workforce. A study by the Nigerian Institute of Policy and Strategic Studies revealed that political appointees consume over 70% of the country’s recurrent expenditure, highlighting the urgent need for reform in this area.
Moreover, investing in adequate infrastructure is essential for improving the business environment, attracting foreign investment, and fostering economic growth. Strategic investments in critical infrastructure such as roads, electricity, and transportation can significantly boost productivity and enhance Nigeria’s competitiveness on the global stage.
Enforcing the monetisation policy is another area of focus. Discontinuing the provision of houses and vehicles to officers who already receive monetised allowances can help curb unnecessary expenses. The Independent Corrupt Practices and Other Related Offences Commission (ICPC) estimates that Nigeria loses approximately N300 billion annually to avoidable government spending, which underscores the urgency of this reform.
Conducting regular personnel audits is also a necessary step toward cost reduction. Routine audits can help identify and eliminate ghost workers and redundant staff across all levels of government. The Federal Government’s verification exercise in 2015 uncovered over 30,000 ghost workers, leading to savings of around N100 billion. Such measures are vital for ensuring that government resources are utilised efficiently and effectively.
Furthermore, the Oronsaye Report, which advocates for the rationalisation and restructuring of federal government parastatals, commissions, and agencies, offers another significant pathway toward reducing the cost of governance. The successful implementation of the recommendations outlined in this report is expected to save the government approximately one trillion naira.
In conclusion, President Tinubu’s directive to reduce the cost of governance is a welcome development that can have profound positive impacts on Nigeria’s economy. By adopting additional cost-cutting strategies and implementing necessary reforms, the government can enhance economic efficiency, minimise waste, and promote sustainable growth. It is imperative for the government to sustain this momentum and ensure the effective implementation of these measures to achieve tangible results. The path to economic prudence requires commitment, transparency, and a willingness to prioritise the welfare of the Nigerian people above all else.
Joshua Bamidele (ACIB), Lagos, Nigeria.
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