A review of government’s overhead expenditure for the
period 2012 to 2014 showed that travel was the largest
single expenditure item.
A cumulative total of N248 billion, equivalent to about
18% of total overhead expenditure, was spent on travels
during the period. This translates to N83bn per annum.
A statement from the Federal Ministry of Finance said
discussions with local and international airlines to secure
discounts for travel by government officials are yielding
positive results.
The ministry said at a conservative discount of 5% on
ticket prices, the estimated savings per annum is
approximately N4bn.
The Special Assistant Media to the Minister of Finance,
Festus Akanbi, said given the large amount spent on
travel, and consequently the significant potential for
savings, it is imperative that the Efficiency Unit
prioritises travel as a key focus area for cost cutting and
generation of savings. To this end, the Efficiency Unit
has engaged in discussions with local and international
airlines for discounts commensurate with the large
number of ticket purchases made by government
annually. The savings generated will increase funding
available to the government for capital investment.
Other overhead expenditure items including insurance,
advertising and fuel, where the government’s bargaining
power can be leveraged are also being reviewed.
In parallel, administrative controls are being
strengthened through the issuance of circulars detailing
appropriate guidelines and the implementation of
measures to enforce compliance.
Daily Trust
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