Expenses templates to be released for MDAs by FG

Minister of finance, Kemi Adeosun made this disclosure on Wednesday in Abuja at a workshop on Cost Management on Overhead Expenditure for Permanent Secretaries, Chief Executive Officers of Departments and Agencies, organized by the Efficiency Unit of the ministry.

Adeosun stated that with the meager revenue available to government, “it had become imperative to create headroom to be able to invest in capital projects. “As a result, the need to control recurrent expenditure, especially overheads, necessitated the creation of the Efficiency Unit by the Presidency in 2015.

The Office of Accountant General of Federation (OAGF) is in the process of releasing a template on appropriate expenses for federal government Ministries Departments and Agencies (MDAs).

This is to sustain the current effort of making state owned enterprises productive and accountable.

According to her (Kemi Adeosun), “we will also be improving the level of disclosure, that is even when transactions are done. We noticed funds are really leaking through a loose framework. At the moment, the Accountant General of the Federation is working on a new template to determine what are allowable or unallowable expenses for state-owned enterprises”

She added that when the template becomes official, “there will be a requirement for certain transactions to be disclosed in the audited financial statements of state-owned enterprises, so that there will be transparency around certain areas where clearly money is leaking.”

The Minister was particularly unhappy that some state-owned enterprises from other countries especially from China come to bid for contracts in Nigeria, whereas some of the home-based ones are not that productive in terms of income generation.

According to the Minister of Finance, “why will Nigeria’s state owned enterprises be cost centres? That is no longer acceptable and we are going to correct it. The results we are looking for, as the Head of Service has said, are an entrepreneurial and innovative public service that will serve Nigeria and form the foundation for our future and collective well being.”

Adeosun noted that “the days when cost to income ratios of 99.9 percent was the norm are over. We have secured technical support from the IMF with the state-owned enterprises template.”

The Minister challenged accounting officers to be alive to their responsibilities, saying they will be held responsible for any infractions going forward.

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