Nigeria's President Goodluck Jonathan has been told by a key advisory panel to cut government's running costs.

The chair of the Presidential Advisory Council, Theophilus Danjuma, said ministries should be cut or merged to free money for development schemes
The budget proposed for 2011 shows Nigeria would spend far more on the government than on infrastructure.

Nigeria is Africa's leading oil producer, but the majority of its 150 million people still live in poverty.

Parliamentarians' salaries are not made public in Nigeria, but diplomats say the country's politicians are among the best paid in the world.

The BBC's Bashir Abdullahi in the capital, Abuja, says Mr Danjuma, a retired general and former defence minister, was appointed by Mr Jonathan and is a highly respected figure.

Mr Danjuma said that he realised the "far-reaching recommendations" made by the panel came on the eve of April's elections.

"However we think also this is the right time we raise these issues," Nigeria's Daily Trust paper quotes him as saying.

He said the president had promised feedback on the suggestions.

Continue reading the main story
2011 Budget Proposal: $27.6bn
Ministries: $12bn
Other government bodies: $350m
Parliament: $707m
Pensions and gratuities: $1bn
Transfers to statuary bodies: $1.3bn
Debt payments: $3.5bn
Other expenses: $2.6bn
TOTAL RUNNING COSTS: $21bn
CAPITAL EXPENDITURE: $6.5bn
"If necessary, we shall be involved in finding remedies to all the issues that we have raised," he said, the Nation newspaper reports.

Mr Jonathan, who last week won the ruling party's ticket to run for president, thanked the panel for its report and said its recommendations would be taken seriously.

"You can't provide education, health or security without resources generated from a robust economy," he said.

The finance minister has set up a committee to review the government's running costs, and has said cuts have already by made, Reuters news agency reports.

The president's proposal for this year's national budget, which is currently before parliament, shows that nearly 75%    of the $27.6bn (£17bn) would be spent on running government and its agencies.

Only $6.5bn is proposed for spending on capital projects, such as investment in vital infrastructure.

Mr Jonathan's main opponents for the presidency in April will be former anti-corruption campaigner Nuhu Ribadu and Gen Muhammadu Buhari.


http://www.bbc.co.uk/news/world-africa-12251208

How can we progress when only 6.5 $ billion is alloted to development of infratructure per year.
when economies like china and india are planning to spend 400 billion dollars  in 4 year span on infratructure not to talk about private sector which will contribute another 500 billion in the same period in these countries

These spending were inherited by GEJ. At least he has done well to make effort to trim the spendings. Our hope is that he will take to the advice of the PAC. Well done sir.

Ma_J_Blige:

These spending were inherited by GEJ. At least he has done well to make effort to trim the spendings. Our hope is that he will take to the advice of the PAC. Well done sir.

Trim which spendings?where did u c dat?or r u representing Beaf?
@op
They are planing 2 spend 75% of d budget on govt and its agencies,and 25% on infrastructure?6.5billion on already dilapidated infrastructure?We all know what dat means. . .no hope 4 us(nigeria) this year.4uck all of 'em

Well they say GEJ has good heart or intentions for Nigeria

Recommendations, Recommendations, How many more Recommendations

but be rest assured that one go fall on deaf ears.  The reality on ground is as follow posts are created to appease fellow political associates and if GEJ Tries to cut any post a lot of his fellow cabals will turn on him fast as my man is desperate for power nothing will change.

That is why you have a case where a governor will have 268 advisers ( haba is he running heaven or what).  

The only lucrative business in Nigeria at the moment for these no gooders is politics and  it seems  Danjuma  wants to put them out of business.

A Country that doles out cash like their is no tomorrow for example Niger Delta Ministries  was created to appease some group the question one should ask what is the function of the MinistrY of Internal Affairs.  The list is just Endless

These politicians will rather Nigerian sink than to reduce government as long Oil money is flowing wetin concern them with peasantS like myself and yourself .

That is why we must put an end to 12 years of misrule - nothing good can ever come out of PDP.

philip0906:

Trim which spendings?where did u c dat?or r u representing Beaf?
@op
They are planing 2 spend 75% of d budget on govt and its agencies,and 25% on infrastructure?6.5billion on already dilapidated infrastructure?We all know what dat means. . .no hope 4 us(nigeria) this year.4uck all of 'em

If the government is unable to spend money atleast it has to create a suitable environment for private players to develop infrastructure . That what fashiola is doing and and it is sadly lacking in case of federal government.

Now compare nigerian government spending with indian government spending

Infra spending to reach Rs 41,00,000 cr in 12th Plan

Press Trust of India / New Delhi March 23, 2010, 10:34 IST



India will need an investment of over one trillion dollars (about Rs 40.99 lakh crore) for infrastructure development in the 12th Five Year Plan (2012-17), twice the amount that is likely to be achieved in the current plan.

"A preliminary assessment suggests that investment in infrastructure during the 12th Plan would need to be of the order of about Rs 40.99 lakh crore ($1,025 billion) to achieve a share of 9.95 per cent as a proportion of GDP," Planning Commission Deputy Chairman Montek Singh Ahluwalia said in a report on Investment in Infrastructure.

Yesterday, the Planning Commission had said investment in the infrastructure sector in the Eleventh Five Year Plan (2007-12) will be close to the target of $500 billion, thanks to a better-than-expected show by the telecom sector.

The Commission had set a $500 billion target of investment in the infrastructure sector during the Eleventh Plan Period.

Following the global crisis, the growth rate during 2008-09 slipped to 6.7 per cent from over nine per cent in the preceding three years. It is estimated to be 8.2 this year

i will add infrastructure spending of other countries in a while, if others are having data please add it then we will know how far back we have fallen in world

blacksta:


That is why you have a case where a governor will have 268 advisers ( haba is he running heaven or what).

That is being modest in my opinion, when Isa Yuguda of Bauchi once had (maybe still has) 911 http://thenationonlineng.net/web2/articles/4989/1/Yuguda-sacks-commissioner-911-others/Page1.html, and Dakingari once had (maybe still has) 478 http://www.thisdayonline.info/nview.php?id=146553

msaalli:

That is being modest in my opinion, when Isa Yuguda of Bauchi once had (maybe still has) 911 http://thenationonlineng.net/web2/articles/4989/1/Yuguda-sacks-commissioner-911-others/Page1.html, and Dakingari once had (maybe still has) 478 http://www.thisdayonline.info/nview.php?id=146553

god this is shocking

But in reality, cutting down on government in Nigeria has a formidable foe in the provision of the 1999 Constitution:

Section 147 (3) Any appointment under subsection (2) of this section by the President shall be in conformity with the provisions of section 14(3) of this Constitution:-
provided that in giving effect to the provisions aforesaid the President shall appoint at least one Minister from each State, who shall be an indigene of such State.

If the will is there it can be cut . But it is highly impossible in nigeria case just because ruling party is so sure to came back to power

Someone rightfully said on this forum, 'One way out is the immediate shrinking of government. This style of of governance is too expensive and unsustainable'.

typical example

You have a Minister of Works and you also have Minister of State for Works . what job does a Minister of state carry out that Minister cannot do and then you have a permanent secretary of works.

Over bloated nonsense.

The only way to cut govt spending is the adoption of true federalism, it is the only way to ensure diversification of the economy and an end to our upside down govt where states and LG's go to Abuja for money, instead of the other way round. The terrifying weakness of our economy is displayed in all its stark unclothedness, with the FG using up 80% of the budget for salaries and the like. It is an unsustainable situation.

These things are hardwired in the constitution, therefor; all our past military rulers (except Abdusalami) should be lined up and shot.
They created our current structural problems and handed us a constituition that is an enbarrassment to read.

BEAF
whats abvout your   messaiah

Do you want to have  education from pakistan

http://www.afriquejet.com/news/africa-news/nigeria-education:-nation,-pakistan-to-partner-on-education-2011012168179.html

Honestly, I'd be happier if the money allocated to the FG was reduced. Cut down the money they get in 1/2, give more to the states and LGs.

Shagari also tried to cut the spending and we seen what happened to him as well.

Cutting spending cannot happen without a cut in civil service jobs which for both Federal and States is the largest expenditure. So maybe it is time to cut out the waste in our civil service and privatize companies under the government. We need an enabling environment to help privatized companies progress in the economy.

well a lot of that money is for civil servant salaries, Its the number of big boys that need to be cut. I guess merging it is.

People are all in support of this until it starts impacting your father, mother, uncle or auntie. Then you see people changing their tune and becoming enemies of GEJ.

Gej is trying to cut down expenses he inherited, if he was less concern on the huge xpenses he wldn't have set up that comittee. Its a welcome development except u think -vely for nigeria