Reducing the Cost of Governance

Now that the world oil price is on a free fall and with the obvious changing realities in our country’s economy, it has become a matter of necessity to reduce the cost of governance in all the tiers of government. So before the upcoming elections are won or lost, let us get the political parties, the candidates and the present government committed to the reduction of the remuneration package of all political and public office holders by 30%. This will consequently free up funds to support the 2015 budget for more job creation and continuous infrastructural development in the country.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is the body saddled with the responsibility of determining the salary structure appropriate for political and public office holders in the country.

The RMAFC has been blessed with vast powers as enshrined in our nation’s Constitution to advise the government on means of increasing the nation’s revenue and also to determine the remuneration package of political and public office holders in the country. Section 32 (c) and (d) of the Third Schedule of the Constitution of the Federal Republic of Nigeria 1999 (as amended) states thus - 32. The Commission shall have the power to –

(c) “Advise the Federal and State Government on fiscal efficiency and methods by which their revenue can be increased”.

(d) “Determine the remuneration appropriate for political office holders, including the President, Vice-President, Governors, Deputy Governors, Ministers, Commissioners, Special Advisers, Legislators and the holders of offices mentioned in sections 84 and 124 of this Constitution”.

I am no economics guru, but I think fiscal efficiency to the understanding of an average layman means channelling funds from non-performing sectors of an economy into areas where such funds are urgently needed. It is therefore not a coincidence that the above mentioned sections of the Constitution work hand in glove with each other.

Unfortunately, this is not the first time the proposal for the reduction of the cost of governance has been initiated. The late former President Umaru Musa Yar’Adua while he was in office directed the RMAFC to reduce his remuneration package by 25% so as to bring down the rising financial cost of our nascent democracy. This was promptly carried out by the RMAFC. The downward review was carried out across board. Unfortunately, the National Assembly by refusing what was given to them by the RMAFC, refused to legislate on the remuneration of the other arms of government as stipulated by the Constitution.

The major obstacle we have is therefore the National Assembly. The RMAFC has been granted exclusive powers to determine the remuneration package of the Legislative Houses in accordance with S.70 and S.111 of the 1999 Constitution (as amended) and anything so determined by the RMAFC cannot be increased or added to by the Legislative Houses as they cannot sit as judges on their own case. On the other hand, only the Legislative Houses in accordance with S.84 and S.124 of the 1999 Constitution (as amended) can prescribe the Bill for the review of the remuneration package of the other arms into law so as to enable the reviewed remuneration package become binding on all arms of government. The National Assembly subsequently refused to pass the aforementioned bill into law. As a result of that inaction, the enormous remuneration package of all political office holders has remained the same till today.

Another issue which could jeopardise this initiative is the salient fact that members of the RMAFC are also political office holders who benefit from this same remuneration package. They therefore lack the political will to advise the government on the reduction of the cost of democratic governance in the country.

Also the RMAFC, like most federal executive bodies created by the constitution, goes cap in hand to the National Assembly for the approval of their budget.

Emenike Chimaobi, Abuja