RMAFC Chair Blames Socio-economic Challenges on High Cost of Governance

*Backs holistic adoption of Oronsaye report

James Emejo in Abuja

Chairman, Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Mr. Mohammed Bello Shehu, yesterday blamed the shortage of infrastructure and social services on the high cost of governance in the country.
He said the development had further led to a fall in investments, amid high level unemployment and rising insecurity.
In a statement, the RMAFC boss added 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.

He applauded the administration of President Bola Tinubu for adopting the Oronsaye Committee Report recently approved by the Federal Executive Council (FEC) as a way of curbing high cost of governance through the restructuring and rationalisation of federal agencies, parastatals and commissions.
He stressed that the high cost of governance in the country was caused by the expensive nature of the presidential system of government, large bureaucracy, duplication of government ministries, departments and agencies and endemic corruption.

He said there’s currently a high cost of public service delivery due to infrastructure failure, high-security costs as a result of insurgencies, kidnappings, ethnoreligious agitations and armed robbery, as well as multiple salaries and severance allowances; extravagant activities and expenditures, high domestic and foreign debts and weak enforcement institutions.
Shehu pointed out that the cost of governance over the years had been high and alarming – therefore, unsustainable as recurrent expenditure continues to significantly exceed capital expenditure thus negatively impacting on investment, industrial expansion, infrastructural development and growth of the real sectors of the economy.

He, however, stated that the wholesale adoption of the Oronsaye report by the Tinubu-led administration was laudable as it was capable of drastically reducing the cost of governance that would conserve funds for infrastructural development which would impact positively on the lives of the citizens.
Commenting on the current fiscal and monetary reforms being undertaken by the present administration, Shehu explained that the policies of prioritizing price and exchange rate stability to promote sustainable economic growth, and safeguarding the livelihoods of Nigerians was quite commendable, adding that such policies will play a crucial role in cushioning the impact of hyperinflation in the economy.

The RMAFC boss, “The RMAFC sees price stability and exchange rate stability as good policies in the right direction. The price stability preserves the purchasing power of the national currency, provides confidence to the investors and assists the citizenry to plan their spending and savings more effectively”.
e further commended the president for introducing policies aimed at reorganizing the Bureau De Change Market to achieve transparent market operations in line with international best practices.

He said, “The policy will enhance credibility, transparent operations and build trust among market participants, regulatory authorities, and the public. A reorganized BDC market with clear and open processes contributes to the credibility of the foreign exchange system”.