FG spends N7bn on travels monthly

The federal government (FG) spent an average of N7 billion on travels each month for the period 2012 to 2014 making it the largest single expenditure item.

To this end, the Federal Ministry of Finance says it is assisting the government to negotiate reasonable discounts from local and international airlines in an effort to curtail cost of air travel by FG officials.

A statement from the ministry on Tuesday after a  meeting with senior Arik officials confirmed that a review of government overhead expenditure for the period showed that travels took the chunk of FG overhear expenses.

The statement noted that a cumulative total of N248 billion, equivalent to about 18% of total overhead expenditure, was spent on travels during the period.

This translates to N83 billion per annum, and N6.91 billion every month.

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“At a conservative discount of 5% on ticket prices, the estimated savings per annum is approximately N4 billion”, the statement said.

The statement signed by Festus Akanbi, Special Adviser to the Minister of Finance explained that “given the large amount spent on travel, and consequently the significant potential for savings, it is imperative that the Efficiency Unit prioritises travel as a key focus area for cost cutting and generation of savings.”

“The Efficiency Unit has engaged in negotiation and discussions with local and international airlines for discounts commensurate with the large number of ticket purchases made by government annually. The savings generated will increase funding available to the government for capital investment,” Akanbi said.

In addition to reducing government spending on travels, the Efficiency Unit has made proposals to the appropriate government authorities for the introduction of guidelines that will reduce the need for travel by localising the activities that necessitate travel, where feasible, and encouraging the use of ICT.

According to the statement, other overhead expenditure items including insurance, advertising and fuel, where the FG’s bargaining power can be leveraged are also being reviewed.

 

 

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