LAGOS—THE
Federal Government spent N825 billion in three years on travels, maintenance,
local and international training, welfare and stationery/computer consumables.
Disclosing this, yesterday, Head of the Efficiency Unit, set up by the Ministry
of Finance to streamline government overhead expenditure, Patience Oniha, said
from the study of government overhead expenditure it carried out between 2012
and 2014, 60 per cent of Federal Government’s overhead expenditure were, on the
average, incurred through local and international travels, maintenance, local
and international training, welfare, office stationery and consumables,
honourarium and sitting allowance, meals and refreshment and books.
Buhari
travels to Kenya on a state visit ; Photo: Bayo Omoboriowo She said: “In
furtherance of its commitment to re-prioritise spending and cut cost on
recurrent expenditure, The Efficiency Unit of the Federal Ministry of Finance
is planning to introduce detailed price guidelines to ensure value for money in
procurement by Ministries, Departments and Agencies (MDAs).
“To reduce the incidence of cash, the
deployment of Ministerial Debit Cards is being piloted. The unit, which carried
out an extensive and detailed review of the Overhead Expenditure data of the
government for the period 2012 to 2014, found that the overhead spending
pattern was concentrated on a limited number of items, including travel,
maintenance, local and international training, welfare and office
stationery/computer consumables.
“The Cumulative Expenditure on these five
items was N825 billion, representing 61 per cent of the Cumulative Total
Overhead Expenditure of N1,353 billion for 2012 to 2014. “This means that the
average amount expended annually on these five items during this period was
N275 billion. The estimate for 2015 shows a continuation of this trend.
“Overhead spending exceeded allocations to capital in all the years reviewed.”
Expenditure
on honoraria Another finding from the review was the large expenditure on
honoraria and sitting allowances, refreshment and meals, books, fuel, publicity
and adverts. In relation to procurement, which had been identified as a major
source of potential savings for government, the Efficiency Unit had prepared a
list of goods and services which were regularly procured by MDAs. Oniha said by
pooling the demand of MDAs, there wwould be opportunities to leverage the
resultant bargaining power and secure price discounts and other benefits from
suppliers.
“This strategy will deliver savings and reduce
the administrative costs inherent in the current procurement process, which is
rather fragmented,” she said. She also recalled that “developed countries such
as the USA, UK, Canada and Hong Kong have used this strategy successfully to manage
their expenditure. Within Nigeria, large and diversified private sector
organizations manage their procurement in a similar manner. As a country,
Nigeria should be no exception, more so when resources need to be managed
tightly to promote spending on capital projects, such as infrastructure.”
Source:
http://www.vanguardngr.com/2016/02/fg-spends-n825bn-on-travel-allowances-stationery-others-in-3-years-finance-ministry/
By Omoh Gabriel &
Ediri Ejoh
LAGOS—THE Federal Government spent N825 billion in three years on
travels, maintenance, local and international training, welfare and
stationery/computer consumables.
Disclosing this, yesterday, Head of the Efficiency Unit, set up by the
Ministry of Finance to streamline government overhead expenditure,
Patience Oniha, said from the study of government overhead expenditure
it carried out between 2012 and 2014, 60 per cent of Federal
Government’s overhead expenditure were, on the average, incurred through
local and international travels, maintenance, local and international
training, welfare, office stationery and consumables, honourarium and
sitting allowance, meals and refreshment and books.
Buhari travels to Kenya on a state visit ; Photo: Bayo Omoboriowo
She said: “In furtherance of its commitment to re-prioritise spending
and cut cost on recurrent expenditure, The Efficiency Unit of the
Federal Ministry of Finance is planning to introduce detailed price
guidelines to ensure value for money in procurement by Ministries,
Departments and Agencies (MDAs).
“To reduce the incidence of cash, the deployment of Ministerial Debit
Cards is being piloted. The unit, which carried out an extensive and
detailed review of the Overhead Expenditure data of the government for
the period 2012 to 2014, found that the overhead spending pattern was
concentrated on a limited number of items, including travel,
maintenance, local and international training, welfare and office
stationery/computer consumables.
“The Cumulative Expenditure on these five items was N825 billion,
representing 61 per cent of the Cumulative Total Overhead Expenditure of
N1,353 billion for 2012 to 2014.
“This means that the average amount expended annually on these five
items during this period was N275 billion. The estimate for 2015 shows a
continuation of this trend.
“Overhead spending exceeded allocations to capital in all the years
reviewed.”
Expenditure on honoraria
Another finding from the review was the large expenditure on honoraria
and sitting allowances, refreshment and meals, books, fuel, publicity
and adverts.
In relation to procurement, which had been identified as a major source
of potential savings for government, the Efficiency Unit had prepared a
list of goods and services which were regularly procured by MDAs.
Oniha said by pooling the demand of MDAs, there wwould be opportunities
to leverage the resultant bargaining power and secure price discounts
and other benefits from suppliers.
“This strategy will deliver savings and reduce the administrative costs
inherent in the current procurement process, which is rather
fragmented,” she said.
She also recalled that “developed countries such as the USA, UK, Canada
and Hong Kong have used this strategy successfully to manage their
expenditure. Within Nigeria, large and diversified private sector
organizations manage their procurement in a similar manner. As a
country, Nigeria should be no exception, more so when resources need to
be managed tightly to promote spending on capital projects, such as
infrastructure.”
Read more at:
http://www.vanguardngr.com/2016/02/fg-spends-n825bn-on-travel-allowances-stationery-others-in-3-years-finance-ministry/
By Omoh Gabriel &
Ediri Ejoh
LAGOS—THE Federal Government spent N825 billion in three years on
travels, maintenance, local and international training, welfare and
stationery/computer consumables.
Disclosing this, yesterday, Head of the Efficiency Unit, set up by the
Ministry of Finance to streamline government overhead expenditure,
Patience Oniha, said from the study of government overhead expenditure
it carried out between 2012 and 2014, 60 per cent of Federal
Government’s overhead expenditure were, on the average, incurred through
local and international travels, maintenance, local and international
training, welfare, office stationery and consumables, honourarium and
sitting allowance, meals and refreshment and books.
Buhari travels to Kenya on a state visit ; Photo: Bayo Omoboriowo
She said: “In furtherance of its commitment to re-prioritise spending
and cut cost on recurrent expenditure, The Efficiency Unit of the
Federal Ministry of Finance is planning to introduce detailed price
guidelines to ensure value for money in procurement by Ministries,
Departments and Agencies (MDAs).
“To reduce the incidence of cash, the deployment of Ministerial Debit
Cards is being piloted. The unit, which carried out an extensive and
detailed review of the Overhead Expenditure data of the government for
the period 2012 to 2014, found that the overhead spending pattern was
concentrated on a limited number of items, including travel,
maintenance, local and international training, welfare and office
stationery/computer consumables.
“The Cumulative Expenditure on these five items was N825 billion,
representing 61 per cent of the Cumulative Total Overhead Expenditure of
N1,353 billion for 2012 to 2014.
“This means that the average amount expended annually on these five
items during this period was N275 billion. The estimate for 2015 shows a
continuation of this trend.
“Overhead spending exceeded allocations to capital in all the years
reviewed.”
Expenditure on honoraria
Another finding from the review was the large expenditure on honoraria
and sitting allowances, refreshment and meals, books, fuel, publicity
and adverts.
In relation to procurement, which had been identified as a major source
of potential savings for government, the Efficiency Unit had prepared a
list of goods and services which were regularly procured by MDAs.
Oniha said by pooling the demand of MDAs, there wwould be opportunities
to leverage the resultant bargaining power and secure price discounts
and other benefits from suppliers.
“This strategy will deliver savings and reduce the administrative costs
inherent in the current procurement process, which is rather
fragmented,” she said.
She also recalled that “developed countries such as the USA, UK, Canada
and Hong Kong have used this strategy successfully to manage their
expenditure. Within Nigeria, large and diversified private sector
organizations manage their procurement in a similar manner. As a
country, Nigeria should be no exception, more so when resources need to
be managed tightly to promote spending on capital projects, such as
infrastructure.”
Read more at:
http://www.vanguardngr.com/2016/02/fg-spends-n825bn-on-travel-allowances-stationery-others-in-3-years-finance-ministry/
