The Nigerian government’s decision to appoint 45 ministers-designate may come with significant financial implications, as the housing allowances alone could cost around N343.25 million annually. The calculation is based on data gathered from the Revenue Mobilisation and Fiscal Allocation Commission. Over a four-year term, the government could spend approximately N1.37 billion on the accommodation allowances for these ministers.
The allowances encompass various components such as accommodation (200% of basic salary), domestic staff (75% of basic salary), utilities (30% of basic salary), and furniture (300% of basic salary). Unlike other monthly allowances, the furniture allowance is typically paid once every four years.
The increased number of ministerial appointments has raised concerns about the rising costs of governance. Despite calls for a leaner government structure, the appointments have continued, with President Bola Tinubu nominating a record-breaking 48 ministers. With the three yet to be approved, the current count stands at 45 ministers.
Each minister is entitled to different allowances depending on their rank. Ministers are eligible for an accommodation allowance of N4.05 million, a domestic staff allowance of N1.52 million, utilities allowance of N0.61 million, and a furniture allowance of N6.08 million (paid once in four years). Ministers of State receive slightly lower allowances, with an accommodation allowance of N3.92 million, a domestic staff allowance of N1.47 million, utilities allowance of N0.59 million, and a furniture allowance of N5.87 million (paid once in four years).
The economist community has expressed concerns about the financial implications of having a larger number of ministers. Many experts argue that a leaner government structure would be more fiscally responsible, especially considering Nigeria’s economic challenges and existing debt. Reducing the cost of governance has been a longstanding concern, and the increase in the number of ministerial appointments seems to be at odds with this goal.