….Backs down on scrapping EFCC, JAMB, FRSC, NYSC, 34 Others
SAN FRANCISCO, September 19, (THEWILL) – There are strong indications that the Federal Government may have dumped the contentious Steve Orosanye report on rationalisation of federal parastatals and agencies.
The report recommended the scrapping of 38 agencies, merger of 52 and reversal of 14 others to departments in ministries.
This much is contained in the 2014-2016 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which President Goodluck Jonathan submitted to the National Assembly this week.
In the MTEF-FSP, the Presidency informed the National Assembly that its decision was influenced by two critical factors: no savings would be made in abolishing the agencies and secondly, some of them are solidly backed by enabling laws which would be difficult to repeal in the short term.
According to the document, “Government is taking steps to correct the situation as much as possible through the IPPIS and other efforts.
“The biometric verification of government employees is being accelerated, and extended to all MDAs, with the inauguration of implementation committee on IPPIS.
“It had been hoped that significant savings would be made from the implementation of government’s White Paper on rationalising public agencies.
“Unfortunately, very little or no savings are likely to be made from the implementation of government’s White Paper on rationalising public agencies due to the fact that many agencies recommended for closure or merger were allowed to remain partly due to the fact that some of them are underpinned by law, which cannot be repealed in the short run.
“In addition, the focus of government expenditure in the medium term continues to be on completing ongoing capital projects, particularly those with a high rate of return.
“The country, however, has faced serious challenges since the first quarter of 2013 as a result of significant disruptions to oil production that has led to an output drop of almost 400,000 barrels per day.
“Though the revenue loss has affected the implementation of the budget, we have so far been able to cope, thanks to our fiscal buffers he Excess Crude Account (ECA).
“As mentioned earlier, our efforts in the area of revenue increase has been hampered by declining oil as non-oil revenue. Government is, however, intensifying efforts aimed at stopping the illegalities in the oil sector; implementing a more ambitious non-oil revenue programme; and tightening fiscal policy as government prioritises spending and continues to focus on completion of on-going capital projects.
“Other measures include leveraging on private sector funds through Public Private Partnership (PPP) arrangements such as the second Niger Bridge, Lekki Port, etc to complement to efforts through the budget; rationalisation of recurrent sending through continued reduction or freezing of verge ads and through IPPIS project over the 2014-2016.
“In 2014, as part of debt service, the Federal Government will borrow N572 billion, although it did not state where the funds would come from.
“Government will continue to exercise fiscal prudence and limit its borrowing requirements in compliance with the Fiscal Responsibility Act, 2007. In this regard, new borrowing in 2014 will be N572 billion, slightly down from N577 billion in 2013.
“Next year, the main focus of government, as contained in the document would be works, power, education, health, security, housing and agriculture and rural development. Government declared them as “critical, economic and social sectors” with the aim to reduce the infrastructure gap, thereby energising the economy in order to create employment that ensures inclusive growth.”
BY EMMA UCHE, ABUJA
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