ABUJA, OCTOBER 14, 2016 – 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 at making state-owned enterprises productive and accountable.
Finance Minister, Mrs. Kemi Adeosun who spoke yesterday in Abuja at a workshop on Cost Management on Overhead Expenditure for Permanent Secretaries, Chief Executive Officers of Departments and Agencies, organised by the Efficiency Unit of the ministry, said with the meagre 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 last year.
She said: “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.”
Mrs Adeosun said 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 days when cost to income ratios of 99.9 per cent was the norm are over. We have secured technical support from the IMF with the state-owned enterprises template.”
She 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.