Top government officials to have their refreshment and meal allowances cut by 65%

REFRESHMENT and meal allowances for senior federal government officials are to be cut by 65% as part of the ongoing cost-cutting drive aimed at reducing overheads and the cost of governance.

 

Since assuming office in May last year, President Muhammadu Buhari has made reducing the cost of government one of his main priorities as he seeks to sort out public finances. As part of this drive, a proposal to reduce meal allowances had been prepared by the Efficiency Unit in the Federal Ministry of Finance and forwarded to the Office of the Secretary to the Government of the Federation for ratification.

 

Last year, the Efficiency Unit was set up by finance minister Kemi Adeosun, to reduce recurrent expenditure, which has an outlay of N2.65tn (£9bn) in the 2016 budget. Headed by Patience Oniha, the unit was established to engender transparency and reduce the government’s large expenditure through efficiency in procurement in the various ministries, departments and agencies.

 

According to sources familiar with the workings of the unit, a reduction of about N8,500 per meal is being considered by the unit from the current N13,000 (£44.51) to about N4,500. Apart from the reduction in meal allowances, other recurrent expenditure items such as honorarium and sitting allowances as well as advertising and publicity would be drastically reduced.

 

One finance ministry source said: “You will recall that President Muhammadu Buhari had, as part of measures to cut cost of governance, approved that the minister of finance should set up an efficiency unit. That unit has in the last few months been working hard to cut the recurrent expenditure and one of the recent recommendations made by the unit is on the need to reduce allowances for meals and refreshment.

 

“Before now, about N13,000 per meal was being spent on each top official of government whenever they have official meetings and others engagements. However, now, there are plans to reduce this to about N4,500 by the template being developed for that purpose.”

 

While the details of the percentage of reduction in honorarium and sitting allowances as well as advertising and publicity could not be ascertained, it was learnt that the template for the reduction in meal and refreshment allowances was already being worked on by the unit. A directive indicating how it will work is expected to be captured in a circular to be released by the Office of the Secretary to the Government of the Federation.