The cost of housing allowances for the newly appointed ministers in Nigeria is estimated to be around N343.25 million annually, according to findings from The PUNCH. This means that in four years, the Federal Government could spend N1.37 billion on accommodation for the 45 ministers-designate.
The housing allowances are based on data obtained from the Revenue Mobilisation and Fiscal Allocation Commission, covering allowances for accommodation (200% of basic salary), domestic staff (75% of basic salary), utilities (30% of basic salary), and furniture (300% of basic salary). Unlike other allowances paid monthly, the furniture allowance is usually disbursed once every four years.
President Bola Tinubu recently unveiled the portfolios of his ministers, and the reshuffling has resulted in new appointments and changes within the cabinet. The increase in the number of ministers and the associated housing allowances has raised concerns about the escalating cost of governance.
Economists and experts have criticized the decision to appoint a higher number of ministers, citing the need for a leaner and more cost-effective government. They emphasize that Nigeria’s financial state, burdened by debt, does not warrant the employment of many ministers and aides.
While some argue that merging ministries and functions could lead to more efficient governance, others express concerns that the expanded number of ministers could set a precedent for increased government spending at both the federal and state levels. Calls for reducing the cost of governance continue to be echoed by experts and citizens alike.
The Nigerian government is facing pressure to manage its finances efficiently and prioritize essential services and developmental projects amid the challenges posed by economic uncertainties and rising debt levels.
