FG sets up Efficiency unit to cut governance cost.  

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Owing to the unsustainable cost of governance which has dwarfed development projects to deepen the economy,President Buhari has approved the establishment of an Efficiency Unit  (E-UNIT) in the Federal Ministry of Finance.

The unit is 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.

The Efficiency Unit according to Marshal Gundu, the ministry’s spokesperson is to ensure that all government expenditure is necessary and represents the best possible value for money.

The unit will have a supervising committee with members including kemi Adeosun, who will be the chairman.

Available records have 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, IT consumables, stationeries etc.

As at September 2015, the entire capital expenditure was just N194bn while overhead expenditure was N272bn, a situation that is unsustainable and at variance with the current administration’s resolve to reform the economy and reduce the cost of governance.

According to the Minister of Finance, Kemi Adeosun, 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.

The unit will work under a supervising committee with members drawn from both public and private sector.
The Project Leader is Patience Oniha, a highly experienced Banker and Chartered Accountant, with thirty (30) years experience in financial sector. 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 from the private sector include Kabir Mohammed, former ICAN President; Kunle Elebute, (Partner KPMG) and Seyi Kumapayi, Chief Financial Officer Access Bank.

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