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TECHNICAL REPORT Issue 1, No TECHNICAL REPORT Issue 1, No. 1, March, 2019 REPORT ON THE NEED TO RATIONALIZE AND RESTRUCTURE FEDERAL MINISTRIES, DEPARTMENTS AND AGENCIES (MDAs) Edoba B. Omoregie, Tonye C. Jaja, Samuel Oguche and Usman Ibrahim Department of Legislative Support Services Background/Rationale Worried by the non-implementation of the Steve Oronsaye Report recommending the rationalisation and restructuring of Federal Ministries, Departments and Agencies (MDAs), the National Institute for Legislative and Democratic Studies constituted a four-man Technical Committee to study the Oronsaye Report vis-à- vis existing agencies, and make appropriate recommendations on the way forward, including drafting proposed legislations (Bills) in practical response to specific issues raised, where necessary. From a financial, administrative and legal point-of-view, it is now a global standard practice of modern legislatures around the world to undertake Regulatory Impact Assessment (RIA) and Legislative Impact Analysis (LIA), even if it is a “rudimentary cost-benefit analysis”1 of proposed legislation. The primary purpose of such RIA and LIA, or cost-benefit analysis of proposed legislation is to enable legislators make an informed decision based on concrete evidence that a proposed legislation is beneficial for the greater number of citizens. In Nigeria, as evident from the 2011 Steve Oronsaye Report, the failure to undertake RIA and LIA/rudimentary cost-benefit analysis of proposed legislation (especially for those category of legislation that seeks to establish statutory corporations or Federal Government MDAs) is one of the major reason for proliferation of 1 See C. Stefanou, Drafters, Drafting and the Policy Process in C.Stefanou and H. Xanthaki, (eds) Drafting Legislation-A Modern Approach (Aldershot, UK: Ashgate Publishing, 2008) pp.321-346 at p.327, its rightly stated: “One point to note here is that in some small jurisdictions (or in jurisdictions where drafting takes place inside a ministry) the drafters are even expected to complete relevant Regulatory Impact Assessment (RIA) checklists or even (for minor bills) a rudimentary cost-benefit analysis.20 This is not the case in large common law jurisdictions where RIAs are prepared by specialists in the relevant ministries. 1 legislation establishing MDAs often with functions duplicating those of existing MDAs. It is noteworthy that in the year 2011, the Senate included Order 77 (3) in its Standing Order. This provision made it a mandatory requirement for any Senator who sponsors a Bill to submit an accompanying document named Compendium of Financial Implications of any proposed legislation. However, as proof that the said Order 77 (3) is not sufficient to curb the proliferation of MDAs, it was reported in July, 2017 that the National Assembly is proposing to create twenty-five (25) new agencies.2 Apparently, one reason for this situation is that the Standing Order applies only to the Senate and not to the House of Representatives. Another possible reason is that the Standing Order is a procedural rule without force of law as legislation. Methodology The Committee adopted the method of meeting and deliberation using the Oronsaye Report, the White Paper on the Report, the Statutory Corporation (Modification, etc) Act, 1985 and the Professional Bodies (Special Provisions) Act, 1972 as guides. The Committee undertook a cross-country evaluation of literature available on similar situation in Australia and the United Kingdom. Deliberation and Findings The Committee held seven meetings at which the foregoing materials were subjected to extensive reviews, and came to the following findings: 1. That there is need to amend the Statutory Corporation (Modification, etc) Act of 1985 to reflect the recommendation of the Oronsaye Report and the White Paper on the Report. 2. That in order to give effect to discontinuing further government funding of professional bodies and councils as recommended by the Oronsaye Report and adopted by the White Paper, there is need to amend the Professional Bodies (Special Provisions) Act, 1972 which currently mandates 2 https://www.dailytrust.com.ng/news/general/national-assembly-to-create-25-new-agencies/183118.html accessed 19/02/2018 2 government to provide financial support of various kinds to such bodies and councils. 3. There is need to draft a bill providing compulsory guidelines for establishing public institutions, in order to curb the proliferation of public institutions in Nigeria. 4. The Education (National Minimum Standards and Establishment of Institutions) Act should be amended to resolve the problem of conflicting and competing accreditation exercises between regulatory institutions and professional bodies. 5. There is need to have compile a comprehensive list of all MDAs in Nigeria, and also identify agencies created between 2015 and 2018 in the list. 6. There is need to identify professional bodies in Nigeria to determine extent of government funding of those bodies. 7. There is proliferation of institutions with similar functions in Nigeria, which greatly skyrockets the cost of governance. Obviously, there are institutions with duplicated functions. 8. While there seems to be increase in the number of tertiary institutions established, the obvious fact remains that the existing institutions are grossly inadequate to accommodate Nigerians seeking admission annually. Consequently, there is need for establishment of additional tertiary institutions as opposed to other agencies with duplicated functions. Justifications for establishment of additional tertiary institutions in Nigeria i. In 2010/2011, Nigeria had 112 universities with carrying capacity of 450,000 and 1,493,611 applicants. Thus, the admitting capacity was 30.13 per cent of the total number of applicants. This means that at best, only 30.13 per cent of the total number of applicants were accommodated during that academic session.3 In the 2011/2012 session, five universities were 3 See “Only one in four Nigerians applying to university will get a spot” available at https://qz.com/africa/915618/only-one-in-four-nigerians-applying-to-university-will-get-a-spot/ (Accessed on 15/2/2019) 3 added, bringing the number to 117, with 500,000 carrying capacity, and 4 1,503,933 students applied that year which amounted to 33.25 per cent. ii. Available statistics show that the approved capacity by the National Universities Commission, NUC, for each of the federal universities is between 7,000 and 15,000. There are some state and private universities whose capacities are between 1,000 and 4,000. This is imperative because the Quality Assurance Department of the NUC ensures that no university admits beyond its capacity. In 2013, 1,629,102 registered for UTME, in 2014, it was 1,606,753 and 1,000,400 in 2015. For 2016, a total of 1,589,175 registered, just as 1,736,571 and 1,662,762 registered in 2017 and 2018 respectively.5 Despite the existing number of universities, polytechnics and Colleges of Education, their carrying capacity is still slightly above 600,000. Meanwhile, an average of 1.6 million UTME candidates register for entrance examination yearly. iii. Available data from Nigeria’s National Bureau of Statistics (NBS) and the Joint Admissions and Matriculation Board (JAMB) shows that between 2010 and 2015, of the 10 million applicants that sought entry into Nigerian tertiary institutions, only 26% gained admission. Analysis of the above figures shows that about 75% of candidates fail to secure admission yearly, due to capacity constraints of the existing institutions. Actions taken on Findings a. The Committee drafted two Bills namely: i. Statutory Corporation (Modifications, etc) Amendment Bill, 2019 hereto attached as ‘Annexure A’; ii. Professional Bodies (Special Provisions) Amendment Bill, 2019 hereto marked as ‘Annexure B’; 4 Adesulu, D: “1.7m JAMB candidates jostle for 750,000 spaces”, Vanguard Online, June 16 2016, https://www.vanguardngr.com/2016/06/1-7m-jamb-candidates-jostle-750000-spaces/ (Accessed on 20/2/2019) 5 Ibid 4 iii. Education (National Minimum Standards and Establishment of Institutions) Act (Amendment) Bill, 2019 hereto attached as ‘Annexure C’; and iv. Compulsory Guidelines for Establishing Public Institutions Bill, 2019 hereto annexed ‘Annexure D’. b. The Committee also compiled a list of existing MDAs in Nigeria (marked as ‘Annexure E’). Similarly, the Committee compiled a separate list of institutions established between 1999 and 2018, hereto attached as ‘Annexure F’. From the said list, the Committee also compiled a separate list of professional bodies in Nigeria, which is hereto marked as ‘Annexure G’. c. The Committee further compiled a List of Federal Universities and Polytechnics in Nigeria, marked as Annexures ‘H’ and ‘I’ respectively. Recommendations/Conclusion a) Based on the above findings, steps should be taken to establish more tertiary institutions in Nigeria to cater for the educational needs of Nigerians, especially the youths who often resort to social vices as a result of inability to secure admissions due to limited capacities of the existing institutions. b) Efforts should be made to ensure passage of the annexed bills, which will go a long way in streamlining existing institutions and also provide guidance in establishing further institutions, other than educational, to reduce cost and ensure good governance in Nigeria. In conclusion, the Committee believes that proliferation of establishments is a major reason why the cost of governance continues to skyrocket. The
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