FG Sets New Performance Targets for MDAs to Cut Business Costs
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele
The Federal Government is preparing to introduce measurable performance targets for ministries, departments and agencies (MDAs) as part of efforts to reduce the cost of doing business, eliminate duplicate regulatory requirements and improve public service delivery.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced the proposed framework during a strategic meeting with agency heads and senior government officials at the Federal Ministry of Finance headquarters in Abuja.
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Under the framework, government agencies will be expected to commit to measurable service standards, including faster processing times, compliance with published deadlines and the removal of unnecessary administrative procedures.
The initiative forms part of the government's broader economic reform agenda, with a renewed focus on addressing the bureaucratic obstacles businesses encounter when seeking approvals, meeting regulatory requirements and accessing public services.
Government Targets Duplicate Fees and Regulatory Delays
The proposed framework will require agencies to operate within their statutory responsibilities and eliminate overlapping regulations, repeated documentation requirements and multiple charges that increase the cost of business operations.
Oyedele said public institutions should support investment and business expansion rather than impose avoidable administrative costs on companies and other applicants.
A central feature of the plan is a proposed “One Government” approach, under which agencies would coordinate their activities instead of requiring businesses to navigate separate or conflicting processes.
Where regulatory responsibilities overlap, the government wants to establish a system built around one lead agency, one process and one fee.
If implemented effectively, the approach could reduce the time and money businesses spend obtaining permits, securing approvals and complying with government requirements.
However, the scale of the benefits will depend on how consistently agencies adopt and enforce the proposed changes.
Agencies Face New Service Delivery Standards
The framework will assess agencies against measurable commitments covering service speed, compliance with published timelines and reductions in unnecessary procedures.
The government also intends to strengthen coordination between institutions whose responsibilities intersect, reducing the burden on businesses and applicants who currently have to deal with multiple agencies.
Oyedele called on government institutions to consult relevant stakeholders before introducing new regulations, assess the economic consequences of proposed measures and coordinate with other agencies that could be affected.
He also stressed the importance of providing reasonable notice before major policy or regulatory changes take effect, allowing businesses sufficient time to prepare for new compliance requirements.
These measures are intended to make government procedures more predictable and reduce uncertainty for businesses making investment and operational decisions.
Ministry of Finance to Review Agency Commitments
The Ministry of Finance will review submissions from participating agencies and provide specific feedback within four to six weeks.
The draft framework will subsequently be circulated for further consultation before agencies agree to measurable performance commitments.
Implementation will be reviewed periodically to determine whether institutions are meeting their targets and improving the speed, cost and quality of their services.
The Ministry of Finance will also be subject to the performance expectations. Oyedele acknowledged that delays within government, including slow internal approvals, delayed releases and outdated administrative rules, can undermine the effectiveness of public administration.
This means the proposed reforms are intended to address institutional bottlenecks within the government itself, rather than placing responsibility for administrative inefficiencies solely on individual agencies.
Government Strengthens Financial Accountability
Beyond improving service delivery, the minister directed agencies to remit government revenues fully and promptly, transfer operating surpluses to the Consolidated Revenue Fund and submit audited accounts in line with applicable laws.
These requirements are intended to strengthen financial discipline and ensure that public institutions meet their statutory obligations.
The revenue measures complement the proposed service-delivery targets by linking institutional performance with both administrative efficiency and compliance with public-finance rules.
Implementation Will Determine the Impact on Businesses
The proposed framework signals a shift towards measuring government agencies by their actual performance rather than relying solely on policy announcements and formal compliance requirements.
For businesses, effective implementation could mean fewer administrative steps, lower regulatory expenses and more predictable timelines for obtaining government approvals.
The reforms could also support investment by reducing uncertainty around regulatory processes. However, these benefits are not guaranteed until agencies adopt the framework and demonstrate sustained improvements.
The Ministry of Finance's review of agency submissions over the next four to six weeks will be an important step in determining how the proposals translate into specific commitments.
The central test will be whether the government can turn its performance targets into lasting improvements in the way public institutions regulate, support and interact with businesses.
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