Unsustainable cost of governance: Putting Nigeria in view of insolvency
The submission of reducing the cost of governance in Nigeria, as a panacea to addressing the string of insolvency frowning at the Country, has come to assume a prime of place amidst plethora of recommendations. The call has become more reverberating as the Country slides towards the corridor of deep limitations to fund capital projects without borrowings. The resorts to borrowings which has drifted the Country to the edge of turbulence rising from the burdens of debt servicing which recently have seen the larger chunk of revenue accruing into the Government coffers going down into debt servicing at a disturbing profile of over 91 per cent.
As the strains continue to pose unhealthy conditions to the economy, call on the Government to address structural deficiencies making efficiency in administrative patterns of governance in the Country borne with imprudence and profligacy, the rot of the day, has become more justifiable. It is only instructive that looking within to eliminate fixtures and loopholes in the system of administration which have given room to too costly recurrent expenditures with unnecessary spendings as well as illegal incursions which continue to cluster the system, have become sacrosant. Over time, the clogging of such mischiefs as payroll padding, clandestine recruitments, clustering of ghost workers, unnecessary travels and duplications among others, are deficiencies which have for long clustered to overwhelm the system of governance with overlaying costs putting before the Country, conditions of burdened realities shrinking the availability of funds for capital projects.
In a reflection on how duplications and profligacy have been frustrating the prospect of good course for development in the Country, the Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC) ICPC, Professor Bolaji Owasanoye, at the 3rd National Summit on Diminishing Corruption in the Public Sector, organised by the office of the Secretary to Government of the Federation (SGF) in collaboration with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) at the presidential villa, Abuja, on Tuesday, expressed concern that the cost of governance in the Country has over time been pushed up by corrupt practices, including illegal recruitments, unilateral and illegal increase of salaries and wages, procurement malpractices and budget padding by some government establishments.
He disclosed that the Commission in its review found that 257 projects amounting to N20.138billion were duplicated in the 2021 budget. He was quoted: “Our findings indicate that the same malady of corruption afflicts executive as well as zip projects thus undermining government projections, escalating the cost of governance and denying Nigeria value for money. These maladies include poor needs assessment that disconnects projects from beneficiaries; false certification of uncompleted contracts as completed, deliberate under performance of contracts incessant criminal diversion and conversion of public property by civil servants, to name just a few. Other challenges relate to duplication of projects in the budget. ICPC review found that 257 projects amounting to N20.138b were duplicated in the 2021 budget leading us to submit an advisory to the HMF which was promptly actioned by the Minister to prevent abuse.”
Speaking on the theme entitled “Corruption and Cost of Governance: New Imperatives for Fiscal Transparency,” he attributed the high cost of governance and rising personnel budget to illegal recruitment, illegal and unilateral increase in wages and remuneration by some MDAs, indiscriminate local and international travels, unreasonable demands by some political appointee board members of Ministries, Departments and Agencies, (MDAs) without regard for extant circulars on cost management; procurement fraud, budget padding, etc.
He said the Commission he oversees discovered a number of MDAs have mini civil wars going on between the Board and management and sometimes within the board, adding that the squabbles revolve around abuse of power prohibited by ICPC Act and unreasonable demands by some Board members for privileges contrary to extant circulars and laws and government’s resolve to minimize cost of governance. According to him, the ICPC’s Ethics Compliance Scorecard of MDAs report for 2021 shows that only 34.6 percent of the 360 MDAs assessed scored above average in Management Culture and Structure. The ICPC boss said the Ministry of Labour and Employment and the University College Hospital (UCH), Ibadan, were among government establishments implicated in cases of illegal recruitment being investigated by the commission. According to him, the commission also uncovered a syndicate of individuals within the service who corruptly employ unsuspecting Nigerians, issue them fake letters of employment, fraudulently enroll them on IPPIS and post them to equally unsuspecting MDAs to commence work.
He was quoted, “A major aspect was the astronomical cost of governance at the federal and sub national levels. This has continued to reflect in the huge wage bill on personnel and operational cost standing at about 70% of annual budget. Your Excellency sir, a major push factor on high cost of governance and rising personnel budget is illegal recruitment, illegal and unilateral increase in wages and remuneration by some MDAs, indiscriminate local and international travels, unreasonable demands by some political appointee board members of MDAs without regard for extant circulars on cost management; procurement fraud, budget padding, etc.
“ICPC investigation of some cases of illegal recruitment forwarded to us by Head of the Civil Service of the Federation has so far implicated Ministry of Labour and the University College Hospital Ibadan and a number of corrupt staff of other MDAs at a lower level. This abuse of power is consummated with complicity of compromised elements in IPPIS. These cases are currently under investigation.
“At another level, a syndicate of corrupt individuals within the service corruptly employ unsuspecting Nigerians, issue them fake letters of employment, fraudulently enroll them on IPPIS and post them to equally unsuspecting MDAs to commence work. ICPC is prosecuting one of the leaders of the syndicate from whose custody we retrieved several fake letters of recommendation purportedly signed by Chief of Staff to the President, Hon Ministers, Federal Civil Service Commission and other high ranking Nigerians.
“The third phase of ICPC’s projects tracking covered 1083 projects across entire country with exception of Borno and Zamfara due to security challenges. The exercise verified implementation of executive and zip projects of legislators. We have so far initiated enforcement actions against 67 contractors and forced them back to site and ensured completion of 966 projects worth N310b some of which were hitherto abandoned.
“Our findings indicate that the same malady of corruption afflicts executive as well as zip projects thus undermining government projections, escalating the cost of governance and denying Nigeria value for money. These maladies include poor needs assessment that disconnects projects from beneficiaries; false certification of uncompleted contracts as completed, deliberate under performance of contracts incessant criminal diversion and conversion of public property by civil servants, to name just a few.”
The Country under the prevailing conditions may much be drifting closer to a worsened edge where she may be reduced to borrowings to cater for overheads and recurrent expenditures. Such conditions, no doubt, would place the Country at the corridor of debt traps with entangling difficulties frustratingly overshadowing her with omen of bankruptcy. It has only become rational and instructive for the Government to coordinate responsive measures to develop stronger structures of check to close the porous flippings which have given room and ample atmosphere for fixtures making governance in the Country unreadably costly, and thus unsustainable.
