Cost Of Governance, Oronsanye Report A Welcome Devt – RMAFC

The Revenue Mobilization Allocation and Fiscal Commission, RMAFC, has applauded the administration of President Bola Ahmed Tinubu for adopting the Oronsanye Committee Report recently approved by the Federal Executive Council, FEC.

This it says is a way of curbing high cost of governance through the restructuring and rationalization of Federal agencies, parastatals and commissions.

Mr. Mohammed Bello Shehu, Chairman of RMAFC in a statement, observes that the problem of cost of governance was responsible for the reduction in the provision of infrastructure and social services.

According to him, it also led to the consequent fall in investment, unemployment and insecurity in the country, noting that no society can make meaningful progress unless it develops a cost-effective management system to maximize resources to the benefit of all.

The chairman says the Commission, over the years advocated for reduction in cost of governance as a way of preserving scarce resources for sustainable development.

He also explains that the Commission proffered far-reaching recommendations to governments at all levels on the need to scale down on unnecessary expenditure and focus on developmental projects that will impact positively on the lives of the citizenry.

Mr. Shehu emphasises that the high cost of governance in Nigeria was caused by the expensive nature of the presidential system of government, large bureaucracy, duplication of government ministries, departments and agencies and endemic corruption.

He states that other factors are the 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; extravagant activities and expenditures, high domestic and foreign debts and weak enforcement institutions.

The RMAFC Boss also stresses that the cost of governance over the years has been very high and 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.

The Chairman of the Commission expresses optimism that the wholesale adoption of the Oronsanye report by the President Bola Tinubu administration was laudable as it was capable of drastically reducing the cost of governance that would conserve funds for infrastructural development.

Speaking on the current fiscal and monetary reforms being undertaken by the present administration, Mr. Shehu explains that the policies of prioritizing price and exchange rate stability to promote sustainable economic growth, and safeguarding the livelihoods of Nigerians is quite commendable as it will play a crucial role in cushioning the impact of hyperinflation in the economy.

“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”.

The commission also extolls the administration of President Bola Tinubu for introducing policies aimed at reorganizing the Bureau De Change Market to achieve transparent market operations in line with International Best Practices, which will enhance credibility, transparent operations and build trust among market participants, regulatory authorities, and the public.

The RMAFC chairman therefore urges the present administration to consolidate on the synergy and coordination between monetary and fiscal authorities.

“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”.

Mr. Shehu further advises the Committee on the implementation of the Oronsanye Report to equally consider the duplication of agencies especially those agencies created after the report between 2014 to date, adding that a holistic implementation of the report will save funds for infrastructural development in the country.

PR/Umbwanko Baba