LCCI Commends Federal Government’s Move to Cut Cost of Governance

The Lagos Chamber of Commerce and Industry (LCCI) has lauded the recent steps taken by the Federal Government to reduce the cost of governance in Nigeria commending  the decision to curtail the number of public officials embarking on foreign trips and the directive to suspend all publicly-funded foreign trips for government officials, effective April 1, 2024. These actions mark a significant effort towards ensuring a more economically stable Nigeria by managing the cost of governance effectively.

“Amidst the current economic challenges, including high inflation and living costs exacerbated by the removal of petrol subsidies and forex market crises, the government’s move to cut unnecessary expenses is seen as essential. The decision to temporarily halt public-funded foreign trips is aligned with the urgent need to prioritize cost-saving measures while ensuring effective governance.

“The LCCI recognizes the government’s concern regarding the escalating cost of travel incurred by Government Ministries, Departments, and Agencies (MDAs). With this suspension, valuable resources can be redirected towards critical priorities such as infrastructure development, social welfare programs, and economic stimulus initiatives. The Chamber urges governments at all levels to adopt similar measures to reduce the cost of governance within their jurisdictions.

“Furthermore, the LCCI commends initiatives like the recent Abia State of Nigeria Governors and Deputy Governors Pension Repeal Law of 2024, signed by Governor Dr. Alex Otti, which discontinues the payment of pensions to ex-governors and their deputies in the state. Such actions serve as models for other states and the Federal Government to emulate.

“The LCCI emphasizes the importance of transparency in disclosing the amount of funds saved through these cost-cutting initiatives. Public accountability will foster trust and confidence in the government’s financial management. The Chamber also calls for fiscal transparency, including detailed disclosures of funds allocated to statutory transfers and constituency projects undertaken by legislators in the National Assembly.

“Looking ahead, the LCCI envisions utilizing the rescued funds for projects promoting cost-efficiency and automation. One strategic initiative could involve investing in the automation of virtual platforms within ministries to reduce the need for costly international travel. This shift towards virtual engagement not only lowers operational expenses but also enhances efficiency and productivity across government agencies.”

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