The Federal Government yesterday announced that its cost reduction initiative anchored by the Efficiency Unit of the Federal Ministry of Finance has saved the country about N15 billion.
Making this revelation on Tuesday in Abuja, Kemi Adeosun, Minister of Finance said the Efficiency Unit which was created in November 2015 has identified several overhead expenditures items where government spending can be reduced.
The Minister who made this revelation while addressing participants at the workshop on Cost Management for Directors of Ministries, Departments and Agencies, said some of the expenditure items from where the amount was saved are: “Travels, Honoraria and Sitting Allowances, Training, Advertising and publicity, Refreshments/meals and welfare.
According to the Minister who was represented at the event by Mohammed Isa Dutse, Permanent Secretary of the Ministry, stated that the cost reduction was made effective through the circulars issued by the Secretary to the Government of the Federation, Office of the Head of the Civil Service of the Federation and the National Salaries, Wages and Incomes Commission.
“you will agree with me that there is a dire need to review the way the government spends to ascertain if such spending are deployed in a manner consistent with future growth and development and also if the expenditure represent best value for money.
“A sharp and sudden decline in revenues as Nigeria has experienced in recent times at a time when there is an urgent need to develop infrastructure and generate employment, makes it imperative for us to consider measures for generating more revenue and managing costs better.” She stated.
She said the workshop which was carefully planned to enrich the participants’ knowledge and provide them with practical guide for managing costs adding that the ultimate goal for public expenditure is for the citizens to feel the impact of government spending.
She further stated that a similar workshop has been organized earlier for Permanent Secretaries and Chief Executive Officers of Federal MDAs adding that the target audience of the cost management workshop is wide, so as to create uniformity of goals and practices in public spending by public officials at various levels.
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