Govt to generate savings, investment through proper procurement process

Minister for Finance, Kemi Adeosun

MINISTER of Finance, Kemi Adeosun has pledged commitment to streamline government procurement processes to generate more savings from elimination of wastages and excess capacity and duplication to boost the economy.

According to Adeosun, there was an urgent need for government to use its large purchasing power to negotiate favorable terms from suppliers and increase transparency through the introduction of price guidelines, The Guardian reported.

Adeosun, who stated this at the Efficiency Unit, media round table held in Lagos Wednesday, explained that government would save N4.14 billion on travels on a yearly basis” if a price discount of five per cent was secured on average annual expenditure of N83 billion on travels.”.

According to her, government is doing everything within its powers to achieve proper over heading spending profile in order to enhance cost efficiency and maximum value for procurement.

To this effect, she explained that the ministry has concluded arrangement to strengthen internal control and ensure that compliance and enforcement is mandatory in Ministries, Departments and Agencies (MDAs).

Adeosun, who was represented by the Head, Efficiency Unit, Federal Ministry of Finance, Patience Oniha, explained that if procurement processes are streamlined, government would generate savings from elimination of wastages and excess capacity and duplication.

“We have some professionals working with us. We have people that will support, provide data to ensure that they conform to the guidelines, even in operations.”