Why there ‘ll be drop in interest rate – CBN

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*Bemoans high cost of governance

By Emma Arubi & Akpokona Omafuaire

WARRI—THE Governor of Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi said, yesterday, in Warri, Delta State that there will be a drop in interest rate just as he bemoaned the high cost of governance in the country.

Sanusi therefore advised the Federal Government to cut half of its present workforce if a sustainable economy is to be achieved.

The CBN Governor gave the advice during his presentation at the 2nd Annual Capital Market Committee retreat held in Warri.

Sanusi noted that the country cannot build its economy if 70 percent of its revenue is used for the payment of salaries and entitlements as the situation is at present.

CBN Gov Lamido Sanusi

The CBN boss also called for a compressed and less costly system of government that would reduce overhead expenditures to free up capital for infrastructure development. He said that at the moment 70 percent of Federal Government’s revenue goes for payment of salaries and entitlement of civil servants, leaving 30 percent for development of 167million Nigerians which means that for every naira government earns, 70kobo is consumed by civil servants.

“You have to fire half of the civil service because the revenue government has is supposed to be for 167million Nigerians. Any society where government spends 70 per cent of its revenue on its civil service has a problem. It is unsustainable,” Sanusi stated.

Sanusi bemoaned the over bloated legislature when he said: “The country does not need over 100 senators, about 400 members of the House of Representatives to make laws.” He contended that if the expenses of lawmakers, civil services and executive arm of government are summed up, Nigerians will find out that the revenue has been consumed by government, lawmakers and civil servants.

He described as ‘wastage’ of funds the maintenance of 774 local government council chairmen with aides, councillors and other appendages of the third tier of government. “Do we need 774 LGAs, do we need 36 states some of which are unviable? Do we need 774 local governments, why not just remove them and have only state governments?”

The CBN boss maintained that the Federal Government should totally remove petrol subsidy and suggested that those who stole subsidy funds must be brought to book. “People have the right to demand transparency. If you want to remove subsidy you have to show what happened to those who stole.” he added.

Delta State Governor, Dr. Emmanuel Uduaghan, in his remark however disagreed with the CBN governor on the call for staff reduction in the federal and state civil services, noting that the government is already grappling with problem of mass unemployment, and that a cut in workforce will surely worsen the employment situation.

 

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