FG To Save N1bn From Board Allowances

According to a statement from the Efficiency Unit of the Federal Ministry of Finance, the federal government has abridged the frequency of meetings of part-time chairmen and members of committees, boards of statutory corporations and government-owned companies from eight to four times annually in order to help save over N1 billion per annum from sitting allowances.

The Efficiency Unit, in its recommendation to the federal government, through the Office of the Secretary to the Government of the Federation, however, noted that the allowances of N150, 000 to N40, 000 and N120, 000 to N30, 000 per sitting for chairmen and members respectively is reasonable. .

According to the unit, the reduction in the frequency of meetings by such bodies followed a review by the Unit and the discovery that the average annual expenditure on honorarium and sitting allowances between 2012 and 2014 was N12.8 billion.

“A maximum of four meetings was considered adequate for Boards, while other interactions can be conducted using Information Communication Technology (ICT), which is cheaper and already tested in Nigeria,” the Efficiency Unit explained.

Upon accepting the recommendation of the Efficiency Unit to reduce the frequency of meetings by committees and Boards of parastatals and agencies, the secretary to the government of the federation recently issued a circular directing the implementation of the reduction of meetings to four per annum, thus bringing standard, transparency and cost-cutting measures in the payment of  sitting allowances.

The Efficiency Unit said it will continue with its on-going efforts and collaboration with the relevant government offices in line with the resolve of the minister of finance to remain committed to her cost-cutting initiative, which is one of the tools for achieving fiscal prudence and releasing of funds for capital projects that will support economic growth and improve the living standard of Nigerians.