The Federal government has recently announced a significant decision to terminate the funding of professional bodies and councils from its statutory budget. This move is aimed at conserving more revenues for other expenses and was approved by the Presidential Committee on Salaries (PCS) during its 13th meeting held in Abuja. The circular, signed by the director-general of the Budget Office of the Federation, Ben Akabueze, states that the budgetary allocation to these professional bodies and councils will be discontinued starting from the 1st of January, 2024.
The organizations affected by this decision include prominent bodies such as the Pharmaceutical Council of Nigeria, Medical and Dental Council, Nigerian Teachers Council, Nigerian Press Council, and the Institute of Chartered Accountants of Nigeria. In accordance with the PCS’s directive, the purpose of the letter sent by Akabueze is to inform these organizations that they will no longer receive budgetary provisions from the government. Consequently, they will be considered as self-funded entities from now on.
Henceforth, these organizations will be responsible for financing their personnel, overhead, and capital expenditures, starting from the 1st of January, 2024. This change signifies a paradigm shift in their financial management and necessitates a comprehensive approach to self-funding. By implementing this measure, the government aims to streamline its budget allocation process and allocate resources more efficiently across various sectors.
The discontinuation of funding for professional bodies and councils carries significant implications for the affected organizations. They will need to reassess their financial strategies, explore alternative funding sources, and prioritize their expenditures carefully. This policy change also emphasizes the importance of self-sustainability, as these organizations will now have to demonstrate financial responsibility and find innovative ways to meet their operational needs.
Despite attempts to reach out to the director-general of the Budget Office of the Federation for confirmation and details regarding the financial impact of this decision, there has been no response as of yet. It remains to be seen how much the government will save from the cessation of funding for professional bodies and councils, but it is evident that this measure reflects the government’s commitment to fiscal prudence and resource optimization.