Two-time Nigeria Minister of Finance, Mr Olusegun Aganga, has said that the presidential system of government is too expensive for Nigeria.
The former Minister said the coronavirus pandemic should be a special opportunity for Nigeria to make needed structural changes.
Aganga served as Nigerian Minister of Finance from 2010 to 2011, after which he was appointed Minister of Trade and Investment, a position he held until 2015.
He said, in an interview with The PUNCH, that Nigeria has failed to save for a rainy day, and would need to cut the cost of governance to meet its needs.
“My first focus will be to cut and control costs in a significant way. Cut the wastages, block revenue leakages, and take this unique opportunity to cut the cost of governance,” he said.
“We all know that the presidential system of governance is an expensive one. And we now know we cannot afford it.
“This is a unique opportunity to make certain structural changes; we should not miss the opportunity. History will judge us well if we did. We also need to reprioritise spending and improve the quality of our spending.
“When we talk about sources of finance for the economy as opposed to the budget, there are four main sources. The first is the government-sourced revenue including loans.
“This is limited now but if we make our case well and we are seen to have taken some tough measures already, we may be able to access some grants, soft loans. I believe the government is already doing this. But expect revenues from taxes, customs, and value added tax to fall.”
Aganga said the effect of the pandemic on Nigeria’s economy will be “devastating” especially with sustained fall in oil price.
“We were already heading for a tough time pre-COVID-19, but I expect it to be much tougher now because of the twin effects of COVID-19 and the significant and sustained fall in oil price,” he added.
“The glut is going to hit Nigeria harder because we do not have any refining capacity or solid long-term oil contracts as the Saudis have with China and we are almost entirely dependent on oil revenues to support our budget and reserves.”
“This is limited now but if we make our case well and we are seen to have taken some tough measures already, we may be able to access some grants, soft loans. I believe the government is already doing this. But expect revenues from taxes, customs, and value added tax to fall.”
My dear Minister, you are wrong on the above paragraph…! You are absolutely wrong!! By saying that and actually believing that is akin to agreeing and believing for China or other loan guarantors to economically colonize Nigeria for the next hundreds of years to come.
What country has not been drastically and economically affected by the COVID-19 pandemic? But what country has gone about borrowing money…grants and soft loans…as you call them other than Nigeria? I think you should have stopped on your proposal that we stop economic leakages and wastes!
Can you imagine asking elected officials to purchase their own newspapers for 3 years? Can you imagine not buying them new vehicles every year or every other year? Can you imagine not giving them housing allowances and furniture allowances for 3 years? Can you imagine reducing the number of senators in the cabinet by eliminating one senator from every state, that would be from 108 to 72 (2 senators from every state instead of 3). As it stands now, Nigerian senators make the most money than other senators in almost every country that practice “democratic (presidential) system of government, as we do.
But Mr. Aganga, all these things will not happen if we don’t start electing people that actually want to improve and reshape Nigeria…not people that are hung over with promoting their own ethnicity over the others.