By Emeka Ejere

As part of measures being taken by government to enhance performance in the public service, President Mohammadu Buhari, has approved a new and improved performance management framework for government owned enterprises (GOEs).

According to a circular issued on Friday November 30, by Boss Mustapha, secretary to the government of the federation, the objective of the new framework is to raise revenue generation and the associated remittances into government treasury.

Mustapha explained that due to their huge potentials, GOEs are categorized into self-funded, partially funded or fully funded, to generate significant revenues for funding the federal budget, as obtainable in other economies around the world.

He said this potential has largely remained untapped, while much of the sub-optimal revenue being generated is often lost to inefficiencies and leakages.

According the SGF, government has noted also that most GOEs remit less operating surpluses to the Consolidated Revenue Fund (CRF) than is required by law and/or financial regulations, thereby imposing avoidable restrictions on government’s ability to implement its developmental agenda.

He said, “In view of the foregoing, the mandates, operations, budget processes and remittance status of GOEs, the government has considered it necessary to extend its public finance reform programmes to these entities in a strategic, formal and sustainable manner.”

The new reform initiatives approved by the President fall within the following areas: performance monitoring, expenditure controls, budgeting and financial reporting requirements, financial oversight of GOEs and amendment of establishment acts of some GOEs.

The circular enjoined all ministers, permanent secretaries, heads of extra ministerial departments, Accountant General of the Federation, Auditor-General of the Federation and Director-General, Budget Office of the Federation to issue necessary circulars, instructions, and set up appropriate mechanisms for the implementation of the new reforms.

They are also to bring the contents of this circular to the attention of their agencies while ensuring uniform compliance.