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Home Lead-In

The Imperative To Reset Nigeria’s Cost Of Governance

by Cee Harmon
11 months ago
in Lead-In, Fiscal Policy
Reading Time: 3 mins read
Governance
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Nigeria faces a significant challenge in its path to development: the high cost of governance. As the economy struggles under the weight of inflation, unemployment, and poverty, the cost of running the government continues to rise, draining resources that could be better utilised for national development. The reality is that Nigeria cannot afford to maintain an expensive and inefficient system of governance while the majority of its population suffers from lack of basic services, poor infrastructure, and inadequate healthcare. It is imperative that Nigeria reduces its cost of governance to free up funds for critical areas and ensure a more prosperous future for its citizens.
One of the key reasons Nigeria must address its high cost of governance is the disproportionate allocation of public funds to the political class at the expense of the wider population. Nigerian lawmakers and public officials are among the highest paid in the world, despite the fact that Nigeria is home to some of the poorest people globally. The generous salaries, allowances, and perks enjoyed by politicians and government officials create a glaring contrast between the elites and ordinary citizens, fostering social inequality and resentment. When a significant portion of the national budget goes towards maintaining a bloated bureaucracy, little is left for investment in sectors that directly impact the lives of Nigerians, such as education, healthcare, and infrastructure.
Moreover, the structure of Nigeria’s government is inherently costly. The country operates a federal system with 36 states, 774 local government areas, and 49 ministries, apart from departments, and agencies (MDAs), many of which have overlapping functions. This duplication of roles leads to inefficiency and waste, as funds are spent on maintaining multiple institutions that could be streamlined. For example, various agencies exist to perform similar regulatory or oversight functions, resulting in bureaucratic bottlenecks and unnecessary expenditures. Streamlining these institutions, merging similar agencies, and eliminating redundant positions would go a long way in cutting costs and improving governance efficiency.
Another factor contributing to Nigeria’s costly governance is the large number of political appointees and advisers at both the federal and state levels. While it is common for governments to employ experts and advisers to help in decision-making, Nigeria has taken this to an extreme, with a seemingly endless list of special assistants, senior special assistants, and advisers, many of whom serve little practical purpose. The salaries and allowances paid to these individuals further inflate the cost of governance without delivering commensurate value to the country. Reducing the number of political appointments and focusing on merit-based appointments would help curb waste and improve the effectiveness of governance.
The high cost of governance also impedes Nigeria’s ability to respond to pressing economic challenges. With much of the national budget consumed by recurrent expenditure—salaries, overheads, and operational costs—there is little left for capital expenditure. This means that critical infrastructure projects, such as road construction, power generation, and public transportation, are underfunded or delayed. Without significant investment in infrastructure, Nigeria’s economic growth is stunted, as businesses struggle with poor transportation networks, unreliable electricity, and high production costs. Reducing the cost of governance would allow more funds to be allocated to these essential projects, fostering economic growth and creating jobs.
In addition, the current system of governance promotes a culture of entitlement among public officials. The luxurious lifestyles enjoyed by many in government create the perception that political office is a pathway to wealth, rather than a platform for public service. This not only encourages corruption but also distorts the priorities of elected officials, who may be more focused on securing personal gains than addressing the needs of their constituents. By cutting back on the excessive benefits associated with public office, Nigeria can foster a culture of accountability and service-oriented leadership, where officials are motivated to work for the betterment of the nation rather than personal enrichment.

Reducing the cost of governance is not just a matter of fiscal prudence—it is a moral and social imperative. In a country where millions live in poverty, where children are out of school, and where basic healthcare is out of reach for many, it is unjustifiable for the government to continue spending exorbitant amounts on maintaining a bloated political structure. The savings from reducing governance costs could be channeled into social programmes, such as poverty alleviation, education, and healthcare, that would have a direct impact on the lives of ordinary Nigerians.

Furthermore, reducing the cost of governance would help restore public trust in government institutions. Many Nigerians are disillusioned with the political class, viewing government as distant and self-serving. By making tangible efforts to cut costs, streamline bureaucracy, and redirect resources toward public welfare, the government can demonstrate its commitment to serving the people and promoting national development.

 

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