The Nigeria Economic Summit Group (NESG) has called on the Federal Government to implement the recommendations of Stephen Oronsaye-led committee on the reforms of government agencies.
Mr. Kyar Bukar, Co-chairman, Joint Planning Committee of the 18th summit of NESG and Mr Lanre Akinbo, the Managing Director, Wizer Advisory, made this known in a “summit-summary” presented at the end of the three-day summit.
In August, the Oronsaye-led presidential committee recommended the reduction of statutory agencies of government from 263 to 161, abolition of 32 government agencies and merger of 53 others.
President Goodluck Jonathan, thereafter, set up a committee led by the Attorney-General of the Federation to review the recommendations of the report and issue a white paper. In apparent response to the committee’s recommendation, Akinbo described the current cost and size of government as not sustainable at all three tiers of government.
He said that the imbalance between recurrent and capital expenditure was “a drag on economic growth and does not create jobs”.
According to him, the Nigeria Economy Summit Group (NESG) recommended that capital expenditure should be redefined as long-term development capital as opposed to fixed assets. He said that the group, made up of leading private sector players in the Nigeria, would want to see a “50-50 target relationship” between capital and recurrent expenditure.
On deregulation, the group acknowledged the Federal Government efforts at implementing the roadmap for power sector reform. Bukar, however, called on the Bureau of Public Enterprises (BPE) and the Federal Government to conclude all outstanding negotiations with Labour on the power sector reform.