FG spends N825bn on travel allowances, stationery, others in 3 years —Finance ministry
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.
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 N 825 billion, representing 61 per cent of the
Cumulative Total Overhead Expenditure of N 1,353 billion
for 2012 to 2014.
"This means that the average amount expended annually
on these five items during this period was N 275 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.”
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.
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 N 825 billion, representing 61 per cent of the
Cumulative Total Overhead Expenditure of N 1,353 billion
for 2012 to 2014.
"This means that the average amount expended annually
on these five items during this period was N 275 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.”
