Expensive presidential system, a bloated bureaucracy with overlapping ministries, and widespread corruption were causing high cost of governance.
The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) chairman, Mohammed Bello Shehu, declared this in a statement issued in Abuja on Sunday.
Shehu said those are draining public resources and hindering economic development.
According to him, excessive spending on administration far outpaces investments in crucial areas like infrastructure and industrial expansion.
He said the imbalance stiffles the real sectors of the economy, ultimately impacting the lives of everyday Nigerians.
Shehu listed other reasons causing high cost of governance as inefficient public service delivery due to poor infrastructure; high security costs arising from insurgencies, kidnappings, and other security threats; excessive payouts in salaries, severance packages, and allowances; extravagant spending by government officials; crippling burden of domestic and foreign debt and weak institutions that struggle to enforce regulations.
While expressing hope for positive change Shehu praised the Tinubu administration for embracing the Oronsanye Report, a blueprint for streamlining government agencies.
He said the report’s full implementation can significantly reduce administrative costs, freeing up funds for vital infrastructure projects that benefit Nigerians directly.
Shehu also applauded the government’s current economic and monetary reforms. He praised the focus on maintaining stable prices and exchange rates, which he sees as essential for sustainable economic growth and protecting Nigerians’ livelihoods.
These policies, he argues, will help curb inflation’s damaging effects.
He called for a stable exchange rate that would foster investor confidence and minimise uncertainties in the foreign exchange market.
“This, in turn, attracts foreign investment, improves financial inclusion, and creates a more predictable environment for businesses,” he said.
The RMAFC Chairman welcomed the ongoing reforms in the Bureau De Change (BDC) market, saying “These reforms aim to establish transparent operations in line with international best practices. This will increase trust among businesses, regulators, and the public. A well-organized BDC market with clear procedures plays a crucial role in maintaining a credible foreign exchange system.”
He called on the government to strengthen cooperation between monetary and fiscal authorities, adding that by working together and implementing the Oronsaye Report alongside ongoing structural reforms, Nigeria can achieve a more stable exchange rate, control inflation, and create a more business-friendly environment for all.
Shehu said the committee overseeing the Oronsaye Report’s implementation should consider agencies established since the report’s initial publication in 2014 to ensure a comprehensive overhaul that maximizes savings for infrastructure development.
He called on the federal government and states to use the increased allocations from the Federation Accounts Allocation Committee (FAAC) wisely.
“These additional funds should be used to provide adequate support to the Nigerian people, particularly those struggling with the effects of subsidy removal,” he said.
