Yar’Adua Reverses Obasanjo’s Monetisation Policy

[Dan-Borno]

By Sam Akpe, Deputy Editor, Abuja 
Mon, 26 Nov 2007 00:00:00

President Umaru Yar'Adua has quietly reversed the monetisation policy former President Oluesgun Obasanjo said he introduced to raise public expenditure efficiency.

A recent government circular directed that political appointees, for example Ministers, should be allocated official cars.

Others to benefit are Presidential Advisers, and Permanent Secretaries hitherto given loans to acquire such facility.

Each Minister would have security details. Another innovation is the allocation of siren-blaring pilot cars to Ministers travelling outside Abuja.

The circular, dated August 29, 2007, and signed by the Secretary to the Government of the Federation (SGF), Babagana Kingibe, cancelled an earlier one issued on June 27, 2003 by the former SGF, Ufot Ekaette

Ekaette had announced that the government had ceased to provide official vehicles for all political office holders and public servants, including all civil servants.

Until the U-turn, benefits were given to public servants and political office holders in kind or through services – which included transportation, accommodation, utility, domestic staff, entertainment, furniture, among others.

Under monetisation, allowances were paid to the beneficiaries in lieu of these benefits, based on the percentage of their basic salary.

The policy, according to a document produced by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in 2003, was to facilitate resource efficiency.

In the latest arrangement, however, only the National Assembly, and perhaps the judiciary are the arms of government where it is still being implemented.

When monestisation was introduced four years back, the National Assembly was the first testing ground when lawmakers were given car loans, and asked to buy official houses allocated to them.

By this, the government was no longer responsible for the transportation and accommodation of public officers.

Kingibe noted in his circular that in implementing the policy, it had become clear that an aspect of it needed to be modified, especially the provision of vehicles to Ministers, Advisers, and Permanent Secretaries.

The circular is silent on lawmakers and the judiciary.

Kingibe said the modification is "to enable these categories of public office holders carry out their responsibilities efficiently and effectively and uphold the dignity of their offices.

"Consequently, Mr. President has approved the provision of one dedicated official vehicle each to Ministers, Special Advisers and Permanent Secretaries to be provided by government.

"It is also approved for Ministries to provide the security details of ministers with one dedicated security car each, from the Ministry's pool. With this arrangement, the practice by some Ministers sourcing vehicles for the use of the affected public officers from their parastatals, project vehicles or pooled vehicles is to be discontinued. However, Ministers travelling outside Abuja may be provided with pilot cars."

All such vehicles, including the pilot cars, must have government number plates.

Kingibe reminded Ministers, Advisers and other public officers that "the prohibition of the use of sirens in Abuja, as contained in circular SGF.19/S.47/C.1/11/432 of August, 2003 is still in force, and should be strictly observed."

[Muhsin]

Malam Dan-Barno,
This thread, I reckon, should have been in General Board, isn't it?