FG to save N12bn yearly from procurement

By Ali Smart

The cost-cutting measures being adopted by the Federal Government may save the country over N12b in revenue, Ripples has learnt.

One of such measures is discounts from the large purchase of overhead items for Ministries, Departments and Agencies (MDAs).

Speaking with journalists on the activities of the newly created Efficiency Unit of government in Abuja on Tuesday, the Head, Efficiency Unit, Ms. Patience Oniha, disclosed that: “Ongoing reforms in the Federal Ministry of Finance is the overhaul of the internal controls within the MDAs. MDAs have auditors who are supposed to validate these items before payment is made to contractors. There have been significant weaknesses, so that is being overhauled entirely to make sure that what we are gaining from one side we don’t lose it on the other side.”

She further noted that “Infringements on procurement will not go free.”

The Federal Government, she said, “Will now negotiate with suppliers of goods and services under its overhead expenditure programmes so that it can buy supplies at reduced prices and in large quantities for MDAs.”

She specifically said one of the strategies being adopted by the Efficiency Unit “is to get the factories to give us their quotations for prices so that the MDAs can patronise them. This is on the table. There is provision in the law for foreign versus local suppliers; if one is going to import and the other is going to produce locally, the procurement act will make an allowance to recognise the domestic supplier or domestically manufactured goods. So made in Nigeria will be prioritised.”

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