By Abayomi Akinbo
Since the new administration took over, notable measures have been initiated, raising the question of the government’s commitment to implementing substantial reforms. The recent appointments of special advisors serve as the initial step, leaving room for curiosity about further developments throughout the year. Considering the suspension and subsequent arrest of the CBN Governor, Nigerians may anticipate changes in Nigeria’s monetary and fiscal policies. It looks like more changes are coming to institutions. These changes will likely have long-term implications for the country’s fiscal policy stance. As time progresses, it is crucial to closely observe the extent of these changes and their impact on Nigeria’s economic landscape.
With the recent removal of fuel subsidy, which has resulted in higher costs of fuel, goods, and services for citizens, it becomes imperative for the government to approach the reduction of the cost of governance with clean hands. This includes optimizing administrative processes, eliminating wasteful expenditures, and promoting fiscal discipline. By doing so, significant savings can be achieved and redirected towards critical sectors in high demand, such as health, agriculture, education, technology, and infrastructure development. This approach will not only ensure efficient resource allocation but also demonstrate the government’s commitment to responsible financial management and sustainable development.
For years, there has been ongoing discussion regarding the incremental growth of Nigeria’s expenditure. Nigeria’s federal budget has steadily increased since the last administration, with a significant portion allocated to recurrent expenses and administrative capital allocation. While one would expect such high spending on governance to translate into improved service delivery and meaningful project execution, reality tells a different story.
The new administration must take the next step in efficient resource allocation and utilization by adopting decentralized participatory processes. This approach engages citizens and local communities in decision-making, ensuring that their interests are at the core of planning. By involving people in shaping development initiatives, the administration can tailor interventions to meet the specific needs and aspirations of the people, empower communities, foster a sense of ownership, and promote accountability in the allocation and utilization of resources.
While Nigeria has witnessed improvements in participation in the budgeting process at the national level over the past few years, thanks to the efforts of government reformers, civil society, and development organizations, it is important to acknowledge the limited level of participation. Although the Budget Office of the Federation conducts public consultations during the budget formulation process, expanding and enhancing citizen engagement is necessary to fully embrace decentralized participatory processes. This requires continuous engagement and collaboration among stakeholders. To build on these efforts, fostering a culture of transparency and accountability, along with leveraging innovative tools, technologies, and existing gov-tech platforms, will streamline the budgeting process and maximize the impact of resource allocation.
One critical concern with Nigeria’s high cost of governance is that it overshadows vital capital development projects due to bloated administrative and wasteful capital expenses. This issue hampers the effective allocation of resources and obstructs the progress of essential infrastructure and development initiatives. It is imperative to redirect funds towards infrastructure development, job creation, and initiatives that promote economic growth. By curbing unnecessary expenditures and ensuring that public funds are channeled towards projects with measurable and desirable impacts on the masses, the new administration can optimize resource utilization and improve the lives of ordinary citizens.
Another critical aspect to address is the issue of ghost workers in the civil service. As personnel costs continue to rise, the federal government must take decisive action by implementing the long-standing reforms and recommendations to eliminate redundant government agencies and non-value-adding personnel. This means looking at duplication of mandates and possible mergers in line with the Constitution and other laws. Regular audits, leveraging technology, and establishing robust systems are essential to identifying and removing fictitious workers from the government payroll. Optimizing civil service operations will foster trust, accountability, and good governance practices by ensuring resources are allocated to genuine employees and preventing fraudulent insertions. These measures are sure to enhance efficiency in public expenditure and ensure the effective utilization of limited resources for the benefit of all Nigerians.
As Nigerians bear the burden of increased daily expenses, the government must align with the people’s concerns by prioritizing responsible spending that delivers tangible value and positive outcomes. By adopting a prudent and value-driven approach, the government can build trust, promote accountability, and effectively manage resources to alleviate the financial strain on its citizens. The new administration must begin to see things from the perspective of the ordinary people who are faced with the impact of policies introduced within the monetary and fiscal policy areas.
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Abayomi Akinbo is a professional with extensive expertise in fiscal openness, public
financial management, and participatory governance. Over the course of his decade-
long career in the development sector, he has made notable contributions to
enhancing public dialogues and improving public service delivery by prioritizing
citizen engagement in policy-making processes.
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