Reducing the Cost of Governance: Is the FG Ready to Right the Wrongs?

Reducing the Cost of Governance: Is the FG Ready to Right the Wrongs?

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Last week, Nigeria’s Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, announced during a policy dialogue initiative organized by the Independent Corrupt Practices and other Related Offences Commission (ICPC) that the federal government will soon begin to merge or shut Ministries, Department and Agencies (MDAs) with similar roles to eliminate induced wasteful expenses in the public sector.

We believe this decision is long overdue and should be extended to other arms of the government in order to make the public sector efficient. For instance, between 2018 and 2020, personnel and overhead cost of federal MDAs excluding the National Assembly, Judiciary, and Government Owned Enterprises (GOEs) rose by 30.3% from ₦2.4trn in 2018 to ₦3.1trn in 2020, due largely to the increase in the national minimum wage from ₦18,000 to ₦30,000 effective September 2019.

 

Afrinvest


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