X-Raying Tinubu’s Move to Cut Governance Cost
By James Eugenia Joseph,
President Bola Ahmed Tinubu has introduced a range of initiatives aimed at reducing the cost of governance, aligning with his administration’s broader goals of fiscal restraint, minimizing waste, and increasing public sector efficiency. Tinubu’s policies showcase a commitment to addressing a persistent challenge in Nigeria: the high operational cost of government.
The recurring issue of high governance costs in Nigeria stems from factors like substantial personnel expenses, a high volume of political appointments, an overstaffed civil service, and overlapping government functions. Past administrations have attempted to tackle these problems, yet reforms have often been incomplete or yielded only limited success.
Tinubu assumed office amid economic difficulties, including high unemployment, inflation, mounting national debt, and declining oil revenue, making it essential to streamline government spending to free funds for critical sectors like infrastructure, healthcare, and education.
A core aspect of Tinubu’s cost-cutting approach is streamlining ministries, departments, and agencies (MDAs) by consolidating overlapping roles and limiting political appointments, in line with the recommendations of the Oronsaye Report. Initiated in 2011, this report emphasized the need to merge and eliminate redundant agencies to cut down operational costs.
To combat the culture of political patronage that has historically strained Nigeria’s finances, Tinubu aims to reduce the number of aides and special advisers at all levels of government. This policy seeks to foster a more efficient use of resources by ensuring only essential roles are retained.
The administration is also focused on advancing digital transformation in the public sector. By embracing automation and e-governance, Tinubu aims to lower costs associated with manual processes, reduce corruption, and enhance the efficiency of public service delivery.
Tinubu’s administration is exploring a review of the salaries and allowances of public officials, including members of the National Assembly, to create a more sustainable wage structure that reflects Nigeria’s current economic landscape.
Perhaps one of the most significant measures, removing fuel subsidies, addresses a major drain on the national budget that previously consumed over $10 billion annually. The savings from subsidy removal are being redirected toward infrastructure projects and social programs.
Another innovative strategy under consideration is a shift to zero-based budgeting (ZBB), which requires each project and expense to be justified annually, helping avoid automatic continuation of non-essential expenditures and promoting a results-oriented approach to budgeting.
By reducing waste and inefficiency, the government aims to lower its recurrent expenses, which could help manage the fiscal deficit more effectively. Measures such as consolidating redundant agencies and curbing political appointments contribute to more sustainable budgeting.
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Savings generated by reducing governance costs could be redirected to essential areas like healthcare, education, and infrastructure, fostering long-term economic growth and improving citizens’ quality of life.
Through digitalization and ministry consolidation, the government seeks to streamline service delivery and minimize bureaucratic hurdles. Increased automation can curb corruption and enhance the overall efficiency of public services.
A cutback on unnecessary political appointments reduces the culture of patronage and minimizes the burden of “ghost workers”—employees who draw salaries without making meaningful contributions to governance.
Fiscal discipline may reduce the need for borrowing, enabling the government to manage public debt more sustainably. As Nigeria’s debt levels rise, better public expenditure management can lessen long-term debt servicing costs.
Zero-based budgeting enhances accountability by ensuring that each expenditure is scrutinized annually, promoting a results-driven mindset among public officials and fostering transparency in government spending.
Reducing government agencies and political appointments may lead to job losses, particularly among redundant staff or political aides. In a country with high unemployment rates, this could lead to public discontent and protests.
Long-established interest groups, especially within the political class, may resist the consolidation of ministries or the reevaluation of allowances. For instance, efforts to cut legislators’ pay could create tension between the executive and legislative branches.
Reorganizing government institutions could initially disrupt essential services. Administrative bottlenecks or role misalignments might arise during the early implementation stages, impacting service delivery.
Implementing structural reforms in Nigeria’s complex public sector requires strong coordination and oversight. Poor execution could lead to partial implementation, diminishing public trust in the government’s reform agenda.
While these measures may increase fiscal sustainability, they could also negatively affect low-income households. For instance, removing fuel subsidies may drive up transport and commodity prices, straining the purchasing power of vulnerable communities.
President Tinubu has scaled back the number of officials accompanying him on both local and international trips, cutting down on travel allowances, accommodation costs, and other logistics. This move symbolizes a commitment to minimizing wasteful expenditure and sets an example for other public officials.
Both President Tinubu and Vice President Kashim Shettima have notably reduced the size of their security convoys, lowering costs related to personnel, transport, and logistics. This decision reflects a more streamlined approach to governance, although it may raise security concerns in a country facing significant security challenges.
These cost-cutting measures illustrate President Tinubu’s dedication to a leaner, more accountable government. While there are potential risks, the administration’s commitment to reform signals a move toward fiscal discipline and governance that prioritizes Nigeria’s long-term stability and growth.
