BREAKING NEWS, Business
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AS part of measures to tackle the challenges of recession, the Federal Government is implementing cost cutting measures that would save about N19bn in expenses previously made on travels and sitting allowances. Minister of Finance, Kemi Adeosun, disclosed this while speaking at a Cost Management Workshop for Permanent Secretaries and CEOs of Ministries, Departments and Agencies in Abuja on Thursday.
Adeosun said CEOs of public organisations would be held responsible for wastage in the system as they were supposed to implement measures in their organisations aimed at cutting the cost of governance. According to the minister, the Federal Government has already set in motion the process for saving N19bn from travel expenses, printing, and other unnecessary expenses as well as negotiating with airlines for bulk discounts.
She said, “The Efficiency Unit was established in 2015 as one of the reform programmes of the present administration to ensure effective management of the nation’s financial resources in order to achieve a more appropriate balance between capital and recurrent expenditure, value for money and eliminate wastage in government. From recommendations made to the appropriate offices, three circulars have been issued to curtail expenditure on travel, sitting allowances and printing of various items. The full year potential savings based on the actual expenditure incurred for 2012 – 2014 are N13bn and N1bn for travel and sitting allowances respectively.
“We have secured air travel discounts of seven per cent to 50 per cent from 19 local, regional and international airlines. This is expected to save the government over N5bn per annum in air travel. Draft agreements with the airlines are being reviewed after which implementation of the discounts will become effective. The government has set out a clear strategy for resetting our economy. We have identified that under-investment in capital has restricted our growth and left us dependent on oil rather than exploiting other areas with potential. Those economies that have continued growing even in the downturn have been those with the most diverse revenue base.” – Punch
— Oct 13, 2016 @ 18:28 GMT
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