In a bid to reduce the amount being spent on overheard expenditure, the federal government wednesday banned minister and other top officials of government from flying first class while embarking on officials trips.
It said henceforth,
all top officials of government such as ministers, permanent
secretaries, chairmen of federal government committees, as well as
chairmen and chief executives of parastatals and agencies are to travel
on business class.
The development was confirmed in a statement issued by the Media Adviser to the finance minister, Mr Festus Akanbi in Abuja.
In the past, some
government officials who should have been on business class usually
travelled on first class, while many others travelled business class
instead of economy class.
Akanbi in the
statement said the new directive has been captured in a circular on
review of overhead expenses released by the Office of the Secretary to
the Government of the Federation.
He added that the
development is one of the recommendations made by the Efficiency Unit
which was set up by the Minister of Finance, Mrs. Kemi Adeosun, last
last year aimed at reducing overheard expenses.
The unit was set up
to engender transparency and reduce government's large expenditure
through procurement in the various ministries, departments and agencies
of the federal government.
He stated that in
its negotiation for discounts with local and international airlines, the
E-UNIT also recommended other measures for reducing the government's
large expenditure on travels to the OSGF.
"The second
recommendation is on the need to reduce the frequency of travels by
ensuring that board and committee events such as meetings, workshops and
conferences in Nigeria are held in locations where the institutions or
persons participating in the event are domiciled.
"Such events
should, for the most part, be held in Nigeria but where this is not
possible, the prior approval of the Secretary to the federal government
should be secured," the statement noted.
According to
Akanbi, in line with the present administration's commitment to reform
public expenditure, the OSGF accepted the recommendations in full and
had recently issued a circular accordingly, to effect the changes.
He added that "the
buy-in and prompt reaction of the OSGF is an attestation of the common
resolve by government to its change mantra and the spirit of
collaboration among government institutions and officials."
It is estimated
that travel expenditure will drop by about 20per cent if the provisions
of the new circular issued by the OSGF are fully implemented, the
statement pointed out
A 20 per cent
reduction in air travel expenditure, using the figure of N69.417 billion
incurred on travels in 2014 will result in a cost-cutting of N13.88
billion.
Such large savings
from travel, which should ordinarily not be a major expense item for the
government, will become available for investment in capital projects
such as roads, power, railways and public health facilities.

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