President Muhammadu Buhari has approved the establishment of an Efficiency Unit (E-UNIT) in the Federal Ministry of Finance to ensure effective management of Nigeria’s economy and reduce cost of governance.
The principal objective of the Efficiency Unit is to ensure that all government expenditure is necessary and represents the best possible value for money.
Presently, the oil-rich 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 and stationeries among others.
As at September 2015, the entire capital expenditure was just 194 billion Naira while overhead expenditure was 272 billion Naira.
Eliminate Wasteful Spending
A statement by the Presidency said the scenario was considered 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, Mrs 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,” she said.
Supervising Committee
Meanwhile, the Minister of Finance is to inaugurate the Supervising Committee for the establishment of the Efficiency Unit in Abuja on Monday, November 30, 2015 at 10 am.
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, 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 drawn from the private sector include Mr 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.
