National Assembly And The Cost Of Governance.

EXECUTIVE SUMMARY
The Policy Brief is focused on the reduction of the cost of governance, specifically on the cost of running the National Assembly (NASS). It analysed the considerations used by RMAFC in the 2007 review which led to an increase in the allowances and remuneration of NASS members. This includes (a) changes in the basic fundamentals of the Nigerian economy; (b) External reserves; (c) GDP Growth rate; (d) rate of inflation; (e) correct placement of some category of public office holders who were wrongly placed in the old package; (f) need to modify old salaries and allowances and introduce new allowances that were not included in the old package; (g) need for a living wage to ensure honesty and dignity of the office holders and (h) need to ensure compliance with the provisions of sections 84 (3) and 124 (3) of the 1999 Constitution which states that the remuneration and salaries payable to the office holders and their conditions of service, other than allowances, shall not be altered to their disadvantage after their appointment.
A new law emanated from the review; the Certain Political, Public and Judicial Office Holders (Salaries and Allowances, etc) (Amendment) Act No. 1 of 2008. But it was made to have retroactive effect commencing in February 2007. However, the consultations preceding the law did not involve stakeholders other than the beneficiaries of the proposed increase of remuneration and allowances. The Policy Brief reviewed the allocations to NASS and another statutory transfer recipient – the NJC. The review shows that while the allocations to NASS averaged 2.98% of the overall budget over the years 2000-2015; the allocations to NJC averaged 1.91% of the overall FGN budget. Key findings indicate that the basic salary of NASS members is reasonable but the allowances appear to be on the high side. The bulk of expenditure in the legislature goes to overheads with personnel and capital taking up less than 17% of overall expenditure. However, some of the overhead expenses appear over-bloated, frivolous and repetitive. The budget of NASS is no longer disaggregated and published but stated as a lump sum. There is no legal justification for this practice.

A review of extant macroeconomic indicators including economic growth rate and price of crude oil show that the figures and data are heading south. Budget implementation, especially the capital component has averaged less than 23% of overall budget per annum due to a number of factors including paucity of funds. Fewer new jobs have been created in the economy while the external reserves are down. All these indicate the need to reduce personnel votes and the cost of running NASS and other agencies of government. The number of committees in NASS when compared with committees in other Legislatures is excessive. Also, while appropriations to the Legislature in Ghana and South Africa over the years 2010 to 2015 stood at 0.46% and 0.14% of their overall budgets respectively; that of Nigeria stood at 3.15% of the overall budget. When the appropriations are divided per capita by the number of legislators, the figures stood at $1.57m; $0.21m and $0.14m per Nigerian, South African and Ghanaian legislator respectively.

On the basis of the foregoing, the Policy Brief made the following recommendations.
a. RMAFC and other arms of government should review and amend the Certain Political, Public and Judicial Office Holders (Salaries and Allowances, etc) (Amendment) Act No. 1 of 2008 so as to reduce the allowances of public office holders.
b. Consultations for the review should include stakeholders such as organised private sector, organised labour, civil society, relevant MDAS of government dealing with projections and analysis of macroeconomic data.
b. The basic salary of members of the Legislature is reasonable and should not be reduced but the allowances and perks of office should be reduced by a minimum of 40%.
d. The considerations for the above review should be tied to current economic realities and macroeconomic fundamentals.
e. The review of the salaries and emoluments of NASS and other public office holders should be done at more frequent intervals. A review every four years is recommended.
f. Provisions for overhead expenses in NASS should be regulated by law or policy and pegged at not more than 250% of the combined personnel and capital votes. This recommendation takes cognisance of the budgeted sums for personnel and capital expenditure as percentages of the overall NASS budget in the years 2009 and 2010. In the alternative, the appropriation for NASS should not exceed 2% of Retained FGN Revenue.
g. In regulating overheads, a proper budget development template specific to the needs of the Legislature should be developed. The template must have sufficient clarity to check duplications, frivolous and wasteful budget items. This should be preceded by a public expenditure management review of the systems of NASS.
h. All statutory transfers including the allocation to NASS should be published in detailed line item format as is the practice with the allocations of other MDAs.
i. The Senate and House of Representatives should consider reducing their committees to tally with international best practices from the current 147 to 50 committees.
j. New laws reviewing the allowances of NASS members and other political, public and judicial office holders should no longer be made to have retroactive effect.
k. Membership of the NASS should continue to be a full time job whilst the bicameral federal legislature should be retained.

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