FG to get N4 billion from travel cost cuts

folarin okunola

March 17, 2016 10:42 AM

The money saved will increase funding available to the government for capital investment.

Nigeria's Finance Minister Kemi Adeosun speaks after the inauguration of the Efficiency Unit during an exclusive interview with Reuters in Abuja, Nigeria, November 30, 2015. REUTERS/Afolabi Sotunde

Media reports say the Federal Ministry of Finance has announced that discussions with local and international airlines to secure discounts for travel by government officials are yielding positive results.

A review of government overhead expenditure for the period 2012 to 2014 showed that travel was the largest single expenditure item, according to report by Nigeria CommunicationsWeek.

A total of N248 billion, or about 18% of total overhead expenditure, was spent on travel during the period. That’s N83 billion per annum.

At a conservative discount of 5% on ticket prices, the estimated savings per annum is approximately N4 billion, according to a statement from the ministry.

READ: Nigeria's revenues in January fall to N370.388B

In a statement issued after a meeting with senior Arik officials on Tuesday, the Ministry re-emphasized its commitment to cut costs and promote fiscal prudence.

In addition to reducing how much the government spends on travel, the Efficiency Unit has also made proposals to the appropriate government authorities for the introduction of guidelines that will reduce the need for travel via localisation of the activities that necessitate travel, where feasible, as well as encouraging the use of ICT.

folarin okunola