Central
Bank of Nigeria Governor Mallam Sanusi Lamido on Tuesday lamented the
high cost of servicing the nation’s civil service and called on the
Federal Government to fire at least 50 per cent of its entire workforce.
Sanusi,
in his presentation at the Second Annual Capital Market Committee Retreat
in Warri, Delta State, said the country spends 70 per cent of
its earnings on salaries and entitlements of civil servants.
He
argued that having the Federal Government’s staff strength reduced by half
would free up capital for infrastructure development in the country and buoy
the economy.
The
CBN governor had in a lecture last year claimed that 25 per cent of the
overheads of the Federal Government budget went to the National Assembly.
“Twenty
five per cent of the overhead of the Federal Government budget goes to National
Assembly. I have figures from the office of budget for the year 2010. Total
government overhead is N536, 268,49, 280. Total overhead of the National
Assembly is N136,259,768, 112 which is exactly 25.1 per cent of Federal
Government overhead. The overhead of the National Assembly as a percentage of
the Federal Government budget in 2009 was 19. 87 and in 2008 was 14.19”, he
had said.
Sanusi,
at the retreat on Tuesday, advocated a more compact and less expensive system
of government that would reduce overhead costs.
He
said, “At the moment 70 per cent of Federal Government’s revenue goes for
payment of salaries and entitlement of civil servants, leaving 30 per cent for
development of 167 million Nigerians. That means that for every naira
government earns, 70 kobo is consumed by civil servants.
“You
have to fire half of the civil service because the revenue of the
government is supposed to be for 167 million Nigerians. Any society where
government spends 70 per cent of its revenue on its civil service has a
problem. It is unsustainable.
“The
various tiers of government should cut down their recurrent expenditure and use
the fund to provide basic infrastructure like schools, hospital, etc.
“How
can we be using the proceeds from our major source of revenue to service
recurrent expenditure, by paying salaries, allowances, etc. The country should
be thinking of enhancing its productivity base rather than spending on things
that cannot create wealth.”
Sanusi
added that the country did not need over 100 senators, 400
members of the House of Representatives to make laws. He said when the
expenses of lawmakers, civil servants and those in the executive arm of
government are totalled, Nigerians will find out that their national
revenue has been consumed by the Executive, lawmakers and civil servants.
He
also faulted ‘wastage’ of funds on the maintenance of 774 Local
Government Area chairmen, their aides, councillors and other
appendages of the third tier of government.
“Do
we need 774 LGAs? Do we need 36 states some of which are not viable? why
not just remove them and have only state governments?,” he asked rhethorically.
According
to him, “there are state governors whose monthly allocations are barely enough
to pay salaries. I hear such governors complain and I say ‘why complain when
the solution is simple?’ It is irresponsible to use all your money to pay
salaries and wait for another month’s allocation and pay salaries and after
four years, you would have done nothing.”
Sanusi
also maintained that the Federal Government needed to totally
remove petrol subsidy. He suggested that those who stole subsidy
funds should be punished. He said, “People have the right to demand
transparency. If you want to remove subsidy, you have to show what happened to
those who stole.”
The
CBN governor advised the Federal Government to stop
investments on infrastructure that could be handed over to
the private sector to run so that it (FG) can concentrate on building of
schools, health centres and the provision of other social services.
But
Delta State Governor Emmanuel Uduaghan, who was also at the event, faulted
Sanusi’s call for a purge of civil service.
Although
the governor agreed that there was the need to cut
expenditure, he said, “If we must do that, then we should provide
alternatives where the sacked workers can become economically viable.
“The
reason why we are asking the Federal Government to provide basic infrastructure
and enabling environment for private investors to invest is because they can
employ workers who will be disengaged from public sector.
“Therefore,
I don’t agree with the CBN governor that we should sack our workers to reduce
the recurrent expenditure in our budget without providing alternatives.”
Source:
Punch
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