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Nigeria : Finance Ministry's efficiency unit creates strategies to reduce procurement costs.

The Efficiency Unit of the Federal Ministry of Finance has, in furtherance of its pledge to re-prioritise spending and cut cost on recurrent expenditure, announced its plans to introduce detailed price guidelines to ensure value for money in procurement by Ministries, Departments and Agencies (MDAs).

The deployment of Ministerial Debit Cards is being piloted, to decrease the incidence of cash,

According to the Unit, which conducted a vast and detailed review of the Overhead Expenditure data of the government for the period 2012 to 2014, the overhead spending pattern was focursed on a limited number of items including travel, maintenance, local and international training, welfare and office stationery / computer consumables.

The Head of the Efficiency Unit, Patience Oniha, said,"The Cumulative Expenditure on these five items was N825 billion, representing 61% of the Cumulative Total Overhead Expenditure of N1,353 billion for 2012 to 2014. This means that the average amount expended annually on these five items during this period was N275 billion. The estimate for 2015 shows a continuation of this trend."

Overhead spending surpassed allocations to capital in all the years reviewed.

The review also found large expenditure on honoraria and sitting allowances, refreshment and meals, books, fuel, publicity and adverts.

The Efficiency Unit has in relation to procurement, which has been identified as a key source of potential savings for government, created a list of good and services which are regularly purchased by MDAs.

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Publication:Mena Report
Date:Feb 11, 2016
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