The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC says the government has not been able to provide critical infrastructure to Nigerians due to the high cost of governance.
The commission stated on Sunday in a statement that if the situation persists, dearth in investment, high-level of unemployment and insecurity will continue unabated.
RMAFC made the observation amidst the recent decision by President Bola Ahmed Tinubu to implement the Stephen Oronsaye report.
The 800-page report recommended that 263 of the statutory agencies be slashed to 161; 38 agencies be scrapped; 52 be merged and 14 be reverted to departments in various ministries, among others.
The administration took the decision two weeks ago to implement the report several years after it has been submitted to the federal government.
The report sought to reduce the cost of governance in the country by merging some federal government agencies, departments, parastatals and ministries in the country.
RMAFC is one of the agencies to be merged, according to the report.
On February 26, President Tinubu ordered the full implementation of the report after setting up a committee headed by Hadiza Bala -Usman, President Tinubu’s Special Adviser on policy Coordination.
According to a statement signed by the spokesperson of the commission yesterday, Nwachukwu Christian, the agency said the federal government must ensure the prudent management of resources in other to enhance national development.
The statement read, “The problem of the cost of governance is responsible for the reduction in the provision of infrastructure and social services and the consequent fall in investment, high-level unemployment and rising insecurity in the country adding that no society can make meaningful progress unless it develops a competent and cost-effective management system capable of maximising the nation’s resources to the benefit of all.
“The RMAFC Boss also noted 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 investment, industrial expansion, infrastructural development and growth of the real sectors of the economy.”
“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. Other factors were the high cost of public service delivery due to infrastructure failure, high-security costs as a result of insurgencies, kidnappings, ethnoreligious agitations and armed robbery, multiple salaries and severance allowances; extravagant activities and expenditures, high domestic and foreign debts and weak enforcement institutions.”
