TheCable

Foreign trips, which government officials embarked upon between 2012 and 2014, gulped N248 billion, the ministry of finance revealed on Tuesday.

According to Festus Akanbi, special adviser to the finance minister, the ministry had to reach out to airlines to negotiate discount for officials in order to cut spending.

Akanbi said the government intended saving over N4 billion through discounted airfares.

“A review of government overhead expenditure from 2012 to 2014 showed that travel was the largest single expenditure item,” Akanbi said in a statement.

“A cumulative total of N248 billion, equivalent to about 18 per cent of total overhead expenditure, was spent on travel during the periods.

“This translates to N83 billion per annum. So, at a conservative discount of 5 per cent on ticket prices,‎ the estimated savings per annum is approximately N4 billion.”

The statement said given the large amount spent on travel, it was imperative that the efficiency unit prioritises travel as a key focus area for cost cutting and generation of savings.

“To this end, the efficiency unit is negotiating 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.

“Also, 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.

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