This article Dissects the Nigeria nation cost of running government a study of the current President Buhari administration 2015 – 2021
by Mbuotidem Akpan
The study aims at investigating the Nigeria nation cost of running government a study of the current President Buhari Administration 2015 – 2021. Cost of running government is captured by recurrent and capital administrative expenditures, while gross domestic product is used as a proxy for economic growth. This study reveals that the Nigeria Nation Cost of Running government from 2015 till date hampers economic development in Nigeria. Therefore, there is the need to place institutional constraints on public office holders and technocrats in order to minimize the extraction of rent from the state and enhance the availability of public funds for development projects and vital sectors of the economy.
Since 29 May 2015 Muhammadu Buhari was sworn into office as president of Nigeria It is a big surprise that he is prepared to prune the growing cost of running public affairs. All the newspapers have reported that he is set to fight corruption, confront the challenge headlong by scrapping some government bodies, merging others and restructuring many.
It is clear that the president and his men either do not appreciate the magnitude of the problem or he is again playing games with a deadly disease afflicting the country.
The paper examines the Cost of Governance under Buhari’s Presidency. It explores cost of governance in a thematic form, using concrete instances.
Clarification of concept
Muhammadu Buhari, Muhammadu also spelled Muhammad, (born December 17, 1942, Daura, Nigeria), Nigerian military leader and politician who served as Nigeria’s head of state in 1984–85 and was democratically elected president in 2015. He is currently the president of Nigeria.
The Cost of Governance
The cost of governance is the money spent on administrative processes. It is also known as administrative expenditure. Adewole and Osabuohien (2007) divided cost of governance into two: recurrent administrative expenses and capital administrative expenses. They defined cost of governance as costs associated with the running of government.
In other words, these are costs incurred by the government is running governmental affairs.
THE NIGERIA NATION COST OF RUNNING GOVERNMENT A STUDY OF THE CURRENT BUHARI ADMINISTRATION 2015 – 2021
Six years on, are Nigerians better or worse under President Buhari? Six years into Buhari’s presidency, public trust in the Nigerian government appears to be in decline alongside a growing perception of lacking political inclusion. This is hardened by negative economic impacts caused by the pandemic, and a sense of undelivered political promises, which underscore the importance of collective buy-in for the country’s development aspirations.
The following cost of running government occurs in Buhari administration 2015 till date
Fighting corruption in the country
According to the Minister of State for Budget and National Planning, Prince Clem Ikanade Agba, the government will continue to reduce the cost of governance in the country.
He revealed that the implementation of the Treasury Single Account (TSA) in 2015 was a step towards addressing mismanagement of public funds, as the policy helped the Government to consolidate inflows from all agencies of government into a single account at the Central Bank.
He also noted that addressing the high cost of governance and corruption in Nigeria is a top priority of President Muhammadu Buhari’s administration, and this will remain in the fiscal year 2021.
Banning of Importation of Foreign Rice into the country
It is a continuation of a policy that the president began after coming to office in 2015, when he banned the use of foreign exchange to import dozens of items including the staple food, rice. Since then, domestic rice production has increased, but the policy has been criticized for not taking the low capacity of local farmers into consideration. The policy has also coincided with a rise in food prices, which has been blamed on insecurity in some of the country’s main food producing areas.
What you should know about efforts to reduce the cost of governance
It is important to note that the Treasury Single Account (TSA) which was implemented in 2015 by the Buhari administration, was proposed by the administration of President Goodluck Jonathan.
The policy was formulated to consolidate inflows from all agencies of government into a single account of the Central Bank of Nigeria.
The Federal Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, on the occasion of the signing of Memorandum of Understanding (MoU) on TSA with the Republic of The Gambia in Abuja, on November 17 2020, disclosed that Nigeria has been saving about N45 billion monthly in interest payments, since the implementation of the Treasury Single Account (TSA) in 2015.
However, the Buhari anti-corruption campaign and his efforts to reduce mismanagement have not achieved a significant milestone in the overall prevention of corruption in the country and mismanagement of resources.
Data collected by Transparency International in its Corruption Perceptions Index, revealed that Nigeria is currently ranked 146th out of 180 countries in the 2019 corruption perception Index (148th in 2017) and the 14th most vulnerable country out of 125 countries on the 2020 Basel Anti-Money-Laundering Index.
- There is the need to corruption and duplication in government, as well as, make capital spending more effective.
- There is the need for more citizens’ participation to ensure prudence, transparency and accountability in the budgeting process.
Good governance can only achieve the desired objective if corruption is addressed and completely eradicated from the society because no programme can be successfully implemented under a corrupt environment.
However, the cost of governance in Nigeria recently attracted several comments from stakeholders in the nation’s economy who expressed concerns as regards how best the prevalent wastage by government could be curtailed and translated into generally improved living standards for the citizenry.