Adeosun introduces unit to regulate cost in finance ministry

Kemi Adeosun, minister of finance, has embarked on reforms to reduce the cost of governance in her ministry.

This has led to the introduction the efficiency unit (EU), approved by President Muhammadu Buhari.

Marshall Gundu, director of press at the ministry, confirmed this in a statement issued on Thursday, saying the development was in line with the current administration’s resolve to reduce the cost of governance.

“Available records have confirmed that presently, the nation’s recurrent expenditure completely dwarfs capital expenditure by a ratio of 84/16,” the statement read.

“This includes non-wage related overhead expenditure such as travel costs, entertainment, events, printing, IT consumables, stationeries etc.

“As at September 2015, the entire capital expenditure was just N194bn while overhead expenditure was N272bn. This scenario is considered unsustainable and at variance with the current administration’s resolve to reform the economy and reduce the cost of governance.”

Adeosun was quoted as saying the efficiency unit would undertake programmed reviews of all government overhead expenditure with a view to reducing wastage, promoting efficiency and ensuring quantifiable savings for the country.

“Specifically, the efficiency unit will work across all MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies; identify best practices in procurement and financial management and share such knowledge to ensure its adoption,” she said.

“Findings of the efficiency unit will be formally communicated accordingly and will be enforced through establishment of expenditure guidelines, undertaking follow-up reviews, spot checks and other measures that will ultimately checkmate wastages across all areas of federal government expenditure.”

The statement added that the finance minister will inaugurate the supervising committee for the establishment of the efficiency unit in Abuja on Monday.