Oronsaye report: FG budgets N900bn for agencies recommended for scrapping

By AdvocateNews on 24/10/2021

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Stephen Oronsaye and President Muhammadu Buhari
Stephen Oronsaye and President Muhammadu Buhari

The Federal Government can save over N241bn if the Stephen Oronsaye report on public sector reforms is implemented, Sunday PUNCH has learnt.

The Oronsaye report, which was submitted in 2011, stated that there were 541 Federal Government parastatals, commissions and agencies (statutory and non-statutory).

The report added that 263 of the statutory agencies should be reduced to 161,38 agencies should be abolished while 52 agencies should be merged.

It further recommended that 14 agencies should revert to departments in ministries.

For instance, the report recommended the abolition of the Federal Character Commission. The PUNCH estimates that the government will save at least N3.6bn in allocated to this commission in the 2022 budget if the report is implemented.

About N814.4m will be saved if the same action is taken on the Fiscal Responsibility Commission.

The report further recommended that the law establishing the National Salaries and Wages Commission be repealed and its functions taken over by the Revenue Mobilisation and Fiscal Responsibility Commission. This is expected to save the government N2bn.

The Oronsaye report advised the government to merge the nation’s top three anti-corruption agencies- the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission and the Code of Conduct Bureau.

The average the government is expected to save from the merger amounts to at least N31.5bn.

The Infrastructure Concession Regulatory Commission is expected to be subsumed under the Bureau of Public Enterprise, saving the government N1.9bn.

The Border Communities Development Agency is to be brought under the National Boundary Commission, saving the government N4.1bn.

The government was advised to stop funding recurrent expenditure of the National Institute for Policy and Strategic Studies but maintain its capital funding. This will save the government N1.6bn.

The report recommended that the National Emergency Management Agency and the National Commission for Refugees be merged. This is expected to save the government N4.5bn.

The Nigerian Institute of Social and Economic Research is to stop receiving government funding but funded from a proposed National Research Development Fund. This is expected to save the government N1.6bn.

The National Directorate of Employment is expected to be amalgamated with the Small and Medium Enterprises Development Agency of Nigeria to form the National Agency for Job Creation and Empowerment. This should save the government N15.4bn on the average.

The law establishing the Federal Road Safety Corps is expected to be repealed and the agency reverting to the Highways Department of the Federal Ministry of Works while the personnel are to be absorbed by the Police Service Commission and Vehicle Inspection Office. This would save the government N50.8bn based on budget estimates.

The National Agency for the Control of AIDS will no longer be a stand alone agency but is expected to be subsumed into the Nigeria Centre for Disease Control. This will save the government N5.4bn.

The committee recommended that both the Hajj and Christian commissions should be abolished and government should stop sponsoring pilgrimages. Also, the government was advised to stop granting concessionary foreign exchange to pilgrims. This could save the government N2.6bn.

Nigeria is expected to save N1bn if the Administrative Staff College of Nigeria and the Public Service Institute of Nigeria are merged.

The committee recommended that the Nigerian Communications Commission, National Broadcasting Commission and Nigerian Postal Service be merged into one entity known as the Communications Regulatory Authority of Nigeria. This could save the government N149.2bn.

Similarly, the committee recommended that the Nigerian Civil Aviation Authority, the Nigerian Air Space Management Agency and the Nigerian Meteorological Agency be merged into a body known as Federal Civil Aviation Authority. This could save the government N97.9bn.

The committee recommended that the Federal Airports Authority of Nigeria be fully privatised. This will save Nigeria at least N93.5bn in recurrent and capital expenditure going by FAAN’s 2022 budget.

The Nigerian Communication Satellite is expected to be fully privatised, thereby saving the government N9.2bn.

The National Examinations Council is expected to be brought under the West African Examination Council. This will save Nigeria of at least N16.1bn in recurrent and capital expenditure going by NECO’s 2022 budget.

The committee recommended a merger between the National Universities Commission, the National Board for Technical Education and the National Commission for Colleges of Education to form the Tertiary Education Commission. This should save the government N13bn.

The government was asked to stop bearing the recurrent cost of the National Open University of Nigeria. This ought to save the government N7.6bn.

The Nomadic Education Commission is expected to be abolished while the Universal Basic Education Commission takes over its responsibilities. This will save the government N1.4bn.

Similarly, the law establishing the Mass Literacy Council is expected to be repealed and its functions taken over by UBEC. This will save the government N1.1bn.

The National Oil Spill Detection and Response Agency is expected to be scrapped and its functions taken over by the Federal Ministry of Environment and the Department of Petroleum Resources. This is expected to reduce the cost of governance by N2.9bn.

The committee recommended that the National Environmental Standards and Regulations Enforcement Agency be scrapped and its duties transferred to the ministry of environment which could save the Federal Government N4.9bn.

It was recommeded that the Institute for Peace and Conflict Resolution should be scrapped and its functions transferred to the Department of Strategic Studies at the Nigerian Institute of International Affairs. This should save Nigeria N1bn.

The same recommendation was made for the Directorate of Technical Cooperation in Africa. This should reduce the cost of governance by N657.6m based on budget estimates.

The Federal Radio Corporation of Nigeria, Voice of Nigeria and the Nigerian Television Authority are expected to merge to form the Federal Broadcasting Corporation of Nigeria. This is expected to reduce the capital and overhead budget by N16.3bn.

The committee advised the government to abolish the Civil Defence, Immigration, Prisons Services Board while its functions relating to appointment, promotion and discipline be transferred to a proposed Federal Public Service Commission. This is expected to save the government N548.6m.

The law establishing the Nigerian Copyright Commission is expected to be repealed and its functions taken over by the Commercial Law Department of the Federal Ministry of Trade and Investment saving the government N1.4bn in overheads and capital.

The committee recommended that the National Productivity Centre be scrapped. It will reduce the cost of governance by N2.7bn.

The law establishing the National Steel Raw Materials Exploration Agency is expected to be scrapped thereby saving the government N1.5bn. The functions of the NSRMEA are expected to be taken over by the Nigerian Geological Survey Agency.

The government was advised to scrap the National Metallurgical Development Centre, Jos, and Metallurgical Training Institute, Onitsha which would jointly reduce the cost of governance by N2.3bn.

The committee recommended that the Petroleum Products Pricing Regulatory Agency and the Petroleum Equalisation Fund be merged.

Sunday PUNCH could not estimate how much could be saved since the budget of PEF is not made public. However, the budget for PPPRA is N18.9bn.

Also recommended was the repeal of the law establishing the Petroleum Technology Development Fund while the Nigerian Content Development and Monitoring Board is expected to take over its functions.

The Federal Ministry of Police Affairs is expected to be scrapped and its functions taken over by the Ministry of Special Duties. This is expected to save the government N4bn.

The committee called for the scrapping of the National Power Training Institute of Nigeria. This should save the country N1.6bn based on the 2022 budget estimates.

Similarly, the government was advised to abolish the National Rural Electrification Agency. This should save the government N115.9bn.

The National Centre for Technology Management is expected to be abolished, saving the government N1.1bn.

The National Council of Arts and Culture is expected to be merged with the National Troupe of Nigeria and the National Theatre. This would reduce the cost of governance by N2.3bn. Ok 

The committee recommended that the National Commission for Museums and Monuments be merged with the National Gallery of Art to form the National Commission for Museums, Monuments and Arts. This will save the government N4.3bn.

The Nigeria Institute for Hospitality and Tourism Development Studies is to be abolished and its functions taken over by the Nigerian Tourism Development Corporation. About N2.4bn is expected to be saved from this action.

The government was advised to close down all 774 offices of the National Orientation Agency and the functions of the NOA be taken over by the Public Communications Department in the Ministry of Information and Culture. This should reduce the cost of governance by at least N8.3bn.

The National Institute for Cultural Orientation is to be abolished, saving the government N2.8bn.

The Nigerian Export Promotion Council and the Nigerian Investment Promotion Commission are to be merged to form the Nigerian Import-Export Promotion Commission. This will save the government N1.5bn.

The Centre for Automotive Design and Development Council is to be scrapped, saving the N565.6m in recurrent and capital expenditures.

The Nigerian Export Processing Zone Authority is expected to take over the functions of the Oil and Gas Free Zones Authority, reducing the cost of governance by N3.6bn.

The government was advised to stop funding the recurrent expenditure of the Maritime Academy of Nigeria, Oron and limit itself to capital projects. This should save the government N1.9bn.

The committee asked the government to stop funding the Nigeria Football Federation as recommended by FIFA. This should save the government N1.3bn.

The committee recommended that the National Inland Waterways’ functions be taken over by the Nigerian Ports Authority. This should save the government N14bn in capital and recurrent expenditures.

Aside from asking 12 professional health bodies to stop receiving government funding but depend on subscriptions from members, another 20 professional and regulatory agencies were asked to stop receiving government funding.

The report further recommended that about 23 research institutes should draw funding from a proposed National Research and Development Fund and grants. This is expected to save the government at least N48.2bn.

The President, Major General Muhammadu Buhari (retd.), had ordered that a committee be set up to look into the report and implement it in order to reduce the cost of governance in the face of a looming economic crisis occasioned by the drop in global oil prices.

The Federal Government, however, said workers would not be sacked. Nevertheless, the recommendations in the report have yet to be implemented. (PUNCH)

Posted 24/10/2021 09:05:12 AM

 

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