Procurement Contractors To Lose Jobs As Efficency Unit Cuts Overhead Cost

As the country grapples with dwindling revenues and a record high budget, the Efficiency Unit of the ministry of finance says it is is planning on cutting costs on overhead even as some government contractors may be out of job.
Speaking with journalists yesterday, the heAd of the Efficiency Unit, Mrs Patricia Oniha said as part of efforts to cut costs, ministries, department and agencies (MDAs) will have to purchase their supplies under a bulk discount arrangement.
Oniha who noted that the unit is already in talks with some airlines on getting up to five per cent discount on airline tickets for local and international flights said the present norm where each MDA uses several contractors for supplies at retail prices will no longer hold.
Stressing the need for the government to cut cost under the present economic condition, she said the Efficiency Unit has recommended that each The needs of the MDAs will be pulled together and bought under a whole sale arrangement for a better discount.
Meanwhile she said up to N4.4 billion will be saved annually on air travel tickets if government gets a five per cent discount. Oniha revealed that local and international travels, maintenance, local and international training, welfare as well as office stationery and consumer consumables take up more than 60 per cent of overhear costs of the government.
The Efficiency Unit boss also noted that a situation where the government agencies procure items at a price different from the market price and different MDAs quoting different prices will no longer be the norm as there will be a price guideline on all items.
She however stated that the Efficiency Unit’s target is to bring the level down to 30 per cent of overhead costs. Stressing that the present government will not be downsizing inline with its employment creation goals, she said rather civil servants will be redeployed from MDAs where they are not doing much to places where hands are needed.

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