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FG to establish Efficiency Unit to reduce cost of governance

By on December 1, 2015

In line with the current administration’s resolve to institute reform policies that will ensure effective management of the nation’s economy and reduce cost of governance, President Muhammadu Buhari has approved the establishment of an Efficiency Unit  (E-UNIT) in the federal Ministry of Finance.

The principal objective of the Efficiency Unit is to ensure that all government expenditure is necessary and represents the best possible value for money.

Available records had confirmed that presently, the nation’s recurrent expenditure completely dwarfs capital expenditure by a ratio of 84-16. This includes non-wage related overhead expenditure such as travel costs, entertainment, events, printing, information technology consumables, stationeries, among others.

Minister of Finance, Mrs. Kemi Adeosun, revealed that as at September 2015, the entire capital expenditure was just N194 billion while overhead expenditure was N272 billion.

She stressed that the scenario was considered unsustainable and at variance with the current administration’s resolve to reform the economy and reduce the cost of governance.

Adeosun pointed out that the Efficiency Unit will undertake programmed reviews of all government overhead expenditure with a view to reducing wastage, promoting efficiency and ensuring quantifiable savings for the country.

“Specifically, the Efficiency Unit will work across all MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies; identify best practices in procurement and financial management and share such knowledge to ensure its adoption.

“Findings of the Efficiency Unit will be formally communicated accordingly and will be enforced through establishment of expenditure guidelines, undertaking follow-up reviews, spot checks and other measures that will ultimately checkmate wastages across all areas of federal government expenditure,” she added.

Meanwhile, the minister of finance will inaugurate the Supervising Committee for the establishment of the Efficiency Unit in Abuja today. The Committee, to be chaired by the Finance Minister, has members drawn from both public and private sector. The Project Leader is Ms. Patience Oniha, a highly experienced Banker and Chartered Accountant.  She had worked with Ecobank Nigeria, Standard Chartered Bank, KPMG and is currently a Director in the Debt Management Office (DMO).

Other members of the Committee include Head of Service of the Federation, Accountant-General of the Federation, Auditor-General of the Federation and Director, Budget Office of the Federation. Members drawn from the private sector include Alhaji Kabir Mohammed, former ICAN President; Mr. Kunle Elebute, (Partner KPMG) and Ms. Seyi Kumapayi, Chief Financial Officer Access Bank.  Members of the Supervising Committee have agreed to donate their time without fee as their contribution to making government more efficient.

 

[ThisDay]