Editorial
MDAs: Cutting Cost Of Governance
Indications are rife that the Federal Government will soon cut down personnel cost and merge Ministries, Departments and Agencies (MDAs) following persistent low revenue. The Minister of Finance, Budget and National Planning, Zainab Ahmed, hinted at the “National Policy Dialogue on Corruption and Cost of Governance in Nigeria’’ organised in Abuja this month by the Independent Corrupt Practices and other Related Offences Commission (ICPC).
In this era of disastrous economic hardship, the Federal Government’s move to cut cost is most acceptable. This is a route that will be beneficial and long overdue, moreso as the country’s current system of democratic governance is very expansive and expensive. Besides scrapping or merging redundant MDAs, the constitutional provision mandating the President to appoint a Minister from at least each of the 36 States, should be amended to reduce the number of federal cabinet members.
The initiative to reduce cost of governance is an appropriate step towards the realisation that large federal structure is a driver of the high governance cost, engendering public outcry that government spending is largely on recurrent activities at the expense of capital or developmental projects. The subsisting fiscal policy is simply unsustainable and negatively impacts on the government’s fiscal situation.
In some countries, the general cost of administration is less than 10 per cent of the total annual budgets. For instance, the United States, with a higher population than Nigeria, has only 15 secretaries and executive departments as against Nigeria, which has 27 ministers, 16 ministers of state and 27 ministries. At the moment, the Federal Government is maintaining about 943 MDAs with many of them having duplicated functions.
Personnel cost alone was N1.87 trillion in 2016 while currently, the same cost has spiralled to over N3 trillion. With this revelation, it is apparent that the aftermath of the rising cost of running the government is the reason only 30 per cent of the budget is available for capital projects and the cause behind numerous abandoned projects nationwide.
Despite the administration’s unruly spending spree, federal agencies have similarly been accused of using “security votes” to siphon the public treasury. In a presentation at a virtual webinar to mark the 2021 World Press Freedom Day organised by the US Mission in Nigeria, BudgIT, a civic-tech non-profit organisation, said its inquiry exposed “over 316 capital projects worth N39.5 billion, among other loopholes for corruption.”
It disclosed that N1.9 trillion was allocated to the security sector in the 2021 budget, a 14 per cent increase from N1.78 trillion allotted in 2020. Notwithstanding the increase in the funds budgeted and Buhari’s promises to crush insurgents, arbitrary killings and kidnappings at the hands of Boko Haram, bandits, and killer herdsmen remain a regular experience of Nigerians.
BudgIT further revealed that other non-security agencies now receive massive allocations for “security votes”, and described the spending as “an opaque feature of the Nigerian security ecosystem devoid of accountability.” In the 2021 budget, a total of 117 federal agencies received allocations for “security votes” worth N24.3 billion, even though many of the agencies already have allotments for “security charges” to cover each agency’s security needs.
Investigations into the 2021 budget revealed at least 316 duplicated capital projects worth N39.5 billion, with 115 of those duplicate projects occurring in the Federal Ministry of Health. This is very disturbing and unacceptable, especially considering the immeasurable health infrastructure deficit and the raging Covid-19 pandemic affecting Nigeria.
We are miffed by the disclosures of fraud in the MDAs. Urgent steps must be taken to block the leakages. It is tragic that the Buhari’s government that chanted the familiar anti-corruption mantra in 2015 is shamefully unable to fulfill its promise of curbing corruption and grand theft with the budget riddled with gaping loopholes. A staggering N3.31trillion debt servicing burden which will wipe out nearly 41.63% of the projected N7.99 trillion 2021 revenue has become the spectre severely haunting the country.
One of the measures to reduce governance cost in the face of plummeting revenue is for the current administration to revisit the White Paper on Steve Oronsaye Panel’s Report on the Rationalisation of Ministries, Agencies and Parastatals, submitted in 2014. The committee, set up by the administration of former President Goodluck Jonathan, recommended among other measures, the reduction of statutory agencies of government from 263 to 161.
Nigerian leadership must task themselves on good governance. They have to be reminded that the success story of the Asian Tigers many years ago was a product of sound leadership and determination. Since it has been established that corruption is one of the viable drivers of high governance cost in Nigeria, the need to rectify the anomalies to boost revenue as projected by the Federal Government is more obvious.
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Editorial
Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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