Posted by According to Peter Obi, the presidential candidate of the Labour Party (LP) for 2023, Nigeria must cut its government expenditures by 60%.
President Bola Tinubu’s decision, according to Obi, to lower the expense of the Federal Government’s official entourage when traveling is just the tip of the iceberg.
He questioned why the administration had not revealed the amount that will be saved as a consequence of the cut.
Tinubu had promised on Tuesday that government officials’ travel expenses will be cut by 60%.
Ministers, First Lady Remi Tinubu, Vice President Kashim Shettima, and his entourage were also impacted by this cut.
“The recently announced 60% cut in the size of federal official entourages on travels is one positive step towards the reduction of cost of governance and a way to halt wastage,” Obi wrote on X in response. But because of its narrow scope and tiny potential savings, this policy is merely the tip of the iceberg.
The total amount of savings that will result from this is unknown. Although there is some merit to this small step, it would be preferable to see a 60% decrease in the number of federal officials traveling abroad and a 60% reduction in the size of delegations.
Most significantly, a 60% decrease in the overall cost of federal governance is what the current state of the economy requires. This suggests that any excessive and superfluous spending in the recently approved government budget needs to be eliminated.
This is the amount of savings and cost-cutting that can have a significant impact on the status of the economy right now. This degree of government cost reduction should result in significant savings.