FG Reworks Nation’s Recurrent Expenditure Framework

As part of its efforts to cut down on overhead expenditure and invest more in capital projects, the Federal Government has commenced plans to issue a new framework on approved expenses for state-owned emprises.

This was disclosed by the Minister of Finance, Mrs. Kemi Adeosun, at a workshop on Cost Management on Overhead Expenditure organised for Permanent Secretaries, Chief Executive Officers of Departments and Agencies, in Abuja, on Thursday.

The new framework, according to the minister, is expected to encourage productivity and accountability among state-owned emprises.

Adeosun, during the event, said that the Office of the Accountant-general of the Federation will soon come up with a new template which is expected to discourage revenue losses among state-owned enterprises.

“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, Adeosun said in a statement issued by her Special Adviser on Media, Mr Festus Akanbi.

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

“We have observed that many state-owned enterprises in other countries actually come to Nigeria to bid for contracts. Many of the Chinese companies, are actually state owned, 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.

“I want to remind you that being accounting officers is not just a promotion or a title. It is actually a huge responsibility and we are going to be taking it seriously. “You are accountable where public funds are spent and we are building systems to ensure that everybody that is in charge of public budget is held accountable.

Eliminating waste is a national duty for every public officer and as the President has told us, change begins with me.

“Every amount that we save by controlling overheads is being redirected to investment in power, in roads, in rail and in housing and those investments will revive our economy, create jobs, and reduce the cost of living for Nigerians.

“I want to urge you, please don’t just sign. When it comes to public money, yes is an answer. No, is an answer. Why is an answer.

Convince me is also a valid answer. I urge you to be your own auditor. Be circumspect, be curious. In fact, be suspicious because we will hold you accountable for whatever happens while you are doing your work,” she added.

THE WHISTLER recalls that Mrs. Kemi Adeosun, during the 46th Annual Accountants Conference, called for transparency in governance, while charging members of the Institute of Chartered Accountants of Nigeria (ICAN) to take centre stage in addressing financial mismanagement in the public sector.