FG Targets N4billion Savings On Annual Travel Expenditure

The federal government is making plans to save over N4 billion on annual costs on travel following talks with local and international airlines to secure discounts for travel by government officials.

The federal ministry of Finance which made this known on Wednesday, March 16, said on-going discussions with local and international airlines are already yielding positive results.

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

A cumulative total of N248 billion, equivalent to about 18 per cent of total overhead expenditure, was spent on travel during the period. This translates to N83 billion per annum. At a conservative discount of 5% on ticket prices, the estimated savings per annum is approximately N4 billion.

In a statement the special adviser on media to the minister of Finance, Festus Akanbi, the ministry explained that given the large amount spent on travel, and consequently the significant potential for savings, it is imperative that the Efficiency Unit prioritizes travel as a key focus area for cost cutting and generation of savings.

As a result, the Efficiency Unit has engaged in negotiation discussions with local and international airlines for discounts commensurate with the large number of ticket purchases made by Government annually. The savings generated will increase funding available to the government for capital investment.

 

 

 

 

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