Democracy and Cost of Governance in Nigeria

Abstract

The paper aims at assessing cost of governance and revenue assurance mechanisms at states level in Nigeria.  The methodology adopted by the paper involves the use of quantitative data for 9 years, from 2002 to 2010, which was generated from the annual report and accounts of the Central Bank of Nigeria. The data generated for the study was analyzed using graphs and simple percentage analysis.  The finding of the paper shows that Cost of governance in Nigeria  has greatly increased due to unnecessary increase in the number of government agencies, high number of Commissioners, Special Advisers, Special Assistants and Personal Assistants, jumbo pay of political office holders, payroll fraud as a result of ghost workers, high number of official vehicles irrespective of the monetization policy of the government, incessant foreign trips, existence of security vote and extra-budgetary expenditure. Thus, questioning the cost minimization strategies and revenue assurance mechanisms in the States.  Similarly, the trend of Extra-Budgetary Expenditure put to question the implementation of budgets at the States. The paper concludes that the task of reducing cost of governance for revenue assurance at states level does not rest on the executive, legislature and judiciary alone. It is a task demanding the collective effort of all stakeholders. Finally, the paper recommends that there is the need to reduce recurrent expenditure to sustainable level through reducing waste, inefficiency, corruption and duplication in government, as well as, make capital spending more effective.

Keywords: Budgetary Expenditure, Extra-Budgetary Expenditure, Capital Expenditure, Recurrent Expenditure, Cost of Governance.