The Senate has strongly criticized the implementation of Nigeria’s single payment system, labeling it a major impediment to the country’s economic progress. During Thursday’s plenary session, Senate President Godswill Akpabio voiced concerns about the inefficiencies caused by the centralized payment policy and urged its immediate abolition. He emphasized the need for a comprehensive overhaul of the system to enhance efficiency, streamline operations, and accelerate national development.
Akpabio described the current system as outdated and counterproductive, arguing that it hampers critical projects and stifles economic growth. The single payment system mandates over 700 Ministries, Departments, and Agencies (MDAs) to process payments through a singular office, creating bottlenecks and delays in project execution. This centralized approach has been widely criticized by lawmakers, who argue that it undermines public trust and slows down much-needed infrastructure development across the country.
Lawmakers highlighted several issues arising from the single payment system, including prolonged delays in disbursing funds for essential projects. These delays have resulted in stalled initiatives, leaving communities without access to basic amenities such as roads, schools, and healthcare facilities. Constituents expecting the completion of critical infrastructure projects have expressed frustration with the slow pace of progress, attributing it to bureaucratic red tape and inefficiency within the payment system.
Senator John Oloye, speaking during the session, remarked, “The single payment system is not just an administrative issue; it is a barrier to our nation’s development. Projects that could transform lives remain incomplete because funds are stuck in a labyrinthine approval process.” His comments echoed sentiments shared by many other legislators, who stressed the urgent need for reform.
The inefficiencies inherent in the single payment system have eroded public confidence in government institutions. Citizens rely on these projects to improve their quality of life, but when timelines stretch indefinitely due to administrative hurdles, dissatisfaction grows. Lawmakers warned that this lack of trust could further alienate citizens from governance structures, exacerbating existing social and political challenges.
Senator Ada George pointed out that delays in executing constituency projects were particularly damaging in rural areas where infrastructure deficits are most acute. She stated, “In many parts of the country, people still lack basic services like potable water and reliable transportation networks. The single payment system only compounds these problems by delaying the release of funds needed to address them.”
To tackle these challenges, Akpabio called for a complete overhaul of the payment system, advocating for a more decentralized approach that empowers individual MDAs to manage their finances efficiently. He proposed introducing modern technology solutions to automate processes, reduce human error, and ensure transparency in financial transactions. Such reforms, he argued, would significantly improve operational efficiency while fostering accountability.
“The time has come for us to rethink how we handle public finance,” Akpabio said. “We must adopt innovative strategies that align with global best practices if we hope to achieve meaningful progress.” He emphasized the importance of leveraging digital tools to streamline payment procedures, citing examples from countries that have successfully implemented similar reforms.
Other senators supported Akpabio’s call for reform, suggesting that a restructured system should prioritize speed, simplicity, and accountability. They recommended establishing clear guidelines and performance metrics to monitor the effectiveness of new processes, ensuring they deliver tangible benefits to Nigerians.
Beyond addressing immediate concerns, the Senate’s critique of the single payment system highlights broader challenges facing Nigeria’s economy. Inefficient bureaucracies and cumbersome regulatory frameworks often hinder private sector growth and discourage foreign investment. By streamlining financial management processes, the government can create a more conducive environment for businesses to thrive, thereby boosting GDP and creating jobs.
Moreover, improving the efficiency of public spending is crucial for maximizing the impact of limited resources. With Nigeria grappling with fiscal constraints, every naira allocated to development projects must be utilized effectively. An overhauled payment system could help achieve this goal by reducing wastage and accelerating project timelines.
As the debate continues, the Senate has urged the Federal Government to take decisive action on this matter. Lawmakers insist that reforming the single payment system is not merely an option but a necessity for unlocking Nigeria’s full potential. They emphasize that the stakes are high, as failure to act promptly risks perpetuating cycles of underdevelopment and stagnation.
In response to these criticisms, the government must engage stakeholders, including experts in public finance and technology, to design a robust framework for implementing changes. Collaboration with international partners could also provide valuable insights into successful models adopted elsewhere, offering lessons applicable to Nigeria’s unique context.
Ultimately, the success of any reform effort will depend on unwavering commitment and sustained implementation. As Senator Akpabio aptly put it, “We cannot afford to let outdated systems hold us back any longer. It is time to embrace change and pave the way for a brighter future.”
With Nigeria at a critical juncture in its developmental journey, the Senate’s push for reform represents a vital step toward achieving long-term prosperity. By dismantling barriers to progress and fostering innovation, the country can overcome its current challenges and emerge stronger, more resilient, and better equipped to meet the needs of its growing population.
