Sam Amadi, former Chairman of the Nigerian Electricity Regulatory Commission (NERC), has argued that Nigeria’s escalating debt crisis and economic challenges could be alleviated by addressing the country’s soaring cost of governance. Speaking at the 6th annual lecture of the Just Friends Club of Nigeria on Tuesday, Amadi, who is also the director of the Abuja School of Social and Political Thought, warned that the bloated public service structure is draining vital resources, limiting funds for critical investments.
“Today, Nigeria is so highly indebted that we use almost 80-90% of our revenue to service our debts,” Amadi stated. “We are borrowing to service debts, worsening the economic situation. The first step in debt restructuring should be to restructure public expenditure, focusing on the rising cost of governance.”
Amadi pointed to the exponential growth in government spending due to the proliferation of ministries, departments, and agencies. He cited the Orosanye Report, which recommended merging or eliminating overlapping agencies to reduce costs, but emphasized that more comprehensive reforms are necessary.
He also highlighted the inefficiency within government institutions, noting that internal “turf battles” hinder effective policy implementation, creating a bureaucratic system that stifles performance. “Development requires coherent ideas and practices,” he said, calling for a more holistic approach to cutting governance costs.
Amadi stressed the need for simplicity in governance, advocating for a streamlined public service with clear objectives and greater accountability. He urged the government to redirect funds toward infrastructure and capital investments to enhance Nigeria’s productive capacity.
In closing, Amadi emphasized that reducing the cost of governance involves more than just cutting the number of agencies it requires a comprehensive strategy that aligns government functions with development goals and improves accountability in budgeting. “A strong and coherent vision of government is essential for systematic and effective cost reduction,” he concluded.
