FG spent N248bn on travels in three years

Between 2012 and 2014, the Federal Government spent N248bn on foreign travels embarked upon by officials in Ministries, Departments and Agencies of government.

The N248bn spent within the three year period, according to a statement by the Federal Ministry of Finance, represents 18 per cent of the total overhead expenditure for the period.

The statement signed by the Special Adviser to the Finance Minister, Mr. Festus Akanbi, said in a bid to reduce the amount spent on travels, a meeting had been held with local and foreign airline officials to secure discounts for travel expenses.

It said that given the large amount spent on travel, and consequently the significant potential for savings, it was imperative that the Efficiency Unit prioritises travel as a key focus area for cost cutting and generation of savings.

For instance, the statement said with an average of N83bn spent annually on travels, a five per cent discount could generate over N4bn savings on annual travel costs.

It reads in part, “The Federal Ministry of Finance has disclosed that discussions with local and international airlines to secure discounts for travel by government officials are yielding positive results.

“A review of Government overhead expenditure for the period 2012 to 2014 showed that travel was the largest single expenditure item.

“A cumulative total of N248bn, equivalent to about 18 per cent of total overhead expenditure, was spent on travel during the period. This translates to N83bn per annum.

“At a conservative discount of five per cent on ticket prices, the estimated savings per annum is approximately N4bn.”

As part of measures to reduce travel costs, it said the Efficiency Unit has engaged in negotiation with local and international airlines for discounts commensurate with the large number of ticket purchases made by Government annually.

The savings generated, it added, would increase funding available to the government for capital investment.

“In addition to reducing government spend on travel, 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 Information and Communications Technology.

“Other overhead expenditure items including insurance, advertising and fuel, where the government’s bargaining power can be leveraged are also being reviewed,” it added.

In the same vein,the statement said administrative controls are being strengthened through the issuance of circulars detailing appropriate guidelines and the implementation of measures to enforce compliance.