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FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue - Politics - Nairaland

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FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by BrandSpurNG: 11:08am On May 09
In the just concluded week, the Federal Government (FG) as part of measures to reduce the cost of governance amid its dwindling revenue, announced plans to reduce payrolls, cut down recurring project costs and merge some of its Ministries, Departments and Agencies (MDAs).
According to the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, the President stated that the Salaries Committee should work together with the Head of Service to review salaries and payroll of federal institutions in order to step down on cost.

She stated that FG would also review the mandates of some of its Agencies and Ministries with similar functions with a view to merging them. Federal Government’s move to cut cost, especially recurrent expenditure, appears to be a good one given its budget deficit of N5.92 trillion in 2021 – it planned to spend N13.9 trillion with a view to earning N7.98 trillion in 2021.

In a similar development, one of the Federal Government capital projects, the USD1.3 billion Zungeru hydroelectric power in Kaduna State, was reported to have reached 88% completion level. The new power project is expected to inject 700 Megawatt (MW) of electricity into the national grid when it becomes functional in December 2021.

According to the Minister of Power, Mr. Sale Mamman, the power project which is expected to generate 2,630 GWH annually, comprises a composite dam roller-compacted concrete, asphaltic core rockfill dam, diversion work, spillway and plunge pool, power intake and penstocks, as well as tall race channels.

In addition, the Zungeru works has 330/132 transmission lines evacuating power to the existing grid connecting Jebba and Shiroro power plants.

The project which is being handled by Messrs CNECC Sinohybrid Consortium is being funded by a counterpart financing mechanism, with the Federal Government fully paid up its share of USD309.25 million – having so far collected USD984.30 million from the Exim Bank of China to revamp the country’s power infrastructure.

Elsewhere, the CEO, Pension Fund Operators Association of Nigeria (PenOp) stated that the continued decline in Pension Funds’ Assets since the beginning of the year was mainly due to the falling prices of Fixed Income Securities (FISs) amid rising yields.

He noted that PFAs are currently eyeing other alternative investment options aside from government bonds and treasury bills to boost returns on investment. However, he mentioned that currently, the fund administrators cannot invest in foreign bills as there are regulations to be approved by the government.

According to the National Pension Commission’s (PENCOM) report, the total value of Pension Fund Assets fell month-on-month by 0.41% to N12.25 trillion in February 2021, from N12.30 trillion printed in January 2021.

Further break down of the report showed that most of the pension fund assets were invested in FGN Securities – both bonds and treasury bills; as their share of the total assets rose to 66.37% (or N8.13 trillion) in the month under review, from a 65.92% (or N8.11 trillion) recorded in January 2021.

However, total funds invested in bank placements and commercial papers moderated m-o-m by 1.81% to N1.62 trillion in February 2021 (lowering its share of the total assets to 13.22%), from N1.65 trillion in January 2021 (or 13.40% of total assets) while invested fund in Corporate Debt Securities as a percentage of total pension fund assets stood at 7.10% (or N0.87 trillion) from 6.80% (N0.84 trillion).

While we commend the Federal Government on its move to cut cost amid reducing frivolous expenditures in its budget and merging MDAs with similar functions, it is also imperative for FG to lead by example by reducing its salaries and allowances including that of the Legislatures. With this, we note that more funds would be freed up for capital projects, such as power and road infrastructure that are critical for economic growth.
https://brandspurng.com/2021/05/09/fg-considers-reduction-of-costs-merge-mdas-amid-shortfall-in-revenue/

3 Likes

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by budaatum: 11:33am On May 09
We are asking for pay rise they are talking of pay reduction as if price of gari and petrol will ever be reduced. angry

They should start by reducing the pay and benefits and pensions of our legislators, which someone will please post here for us to see again, first.

27 Likes 1 Share

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by greatiyk4u(m): 11:51am On May 09
Cosmetic solution to gigantic problems bewelding the country.

11 Likes

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by VeeVeeMyLuv(m): 12:02pm On May 09
What about telling those who religiously marry a minimum of 4 wives and birth 7 children per woman on an income of N1000 Monthly with a networth of N10,607 only to close their legs.

22 Likes

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by helinues: 12:02pm On May 09
Considers or that should have been the right thing to do

Better than taking another senseless loan

2 Likes 1 Share

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Racoon(m): 12:16pm On May 09
One wonder what they were thinking when they were busy lying while looting that they were paying the fraudulent subsidy or so called subsidy under-recovery.Imagine the billions wasted to renovate the NASS.What about the about to be looted $150B for the moribund PH refinery?
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by CodeTemplar: 12:29pm On May 09
I thought reduction in corruption will take precedence over collapsing MDAs for a govt that promised anti-corruption war.

4 Likes

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by money121(m): 2:24pm On May 09
Sakamaje
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by ictjobber: 2:24pm On May 09
Vg
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by rowosky(m): 2:25pm On May 09
shocked undecided cry
I hope my dad would be safe in NDIC.
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by IMASTEX: 2:26pm On May 09
grin grin grin The real problem is minimum wage, make it 2k. No need to merge MDA, instead create more MDA so you can have slots to share while they don't have any separated functions. Lastly, increase politicians allowances, aids and other benefits. They are doing so much & earning too little.

3 Likes 1 Share

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by WiszyFraud: 2:26pm On May 09
Did you know??

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• Make that difficult phone call.
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cool

1 Like 1 Share

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by soft101: 2:27pm On May 09
When will those in Aso Rock learn to chase the real substance rather than chasing shadows?

The same government is also busy creating more new government Agencies.
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Kingxchange1: 2:27pm On May 09
Funny lads

Check my signature
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Vlibray: 2:27pm On May 09
Some departments are unnecessary
But then again,we are Nigerians and we all want Federal jobs
Lol
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by domannycomedian: 2:28pm On May 09
grin
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Akwamkpuruamu: 2:28pm On May 09
Dem Don tire to print money
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Akwamkpuruamu: 2:29pm On May 09
[s]
Simplyleo:
[s]

Is not by force to wail.

No relationship between the nonsense put up here and the report on the thread.
[/s][/s]
Its too hard for zonebs to use their head

1 Like

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Nobody: 2:30pm On May 09
is alright
at a cheap price dm me for your logo And flyer design
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Abedfff14: 2:31pm On May 09
d senators and reps should cut their salaries first

1 Like

Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by talk2hb1(m): 2:31pm On May 09
Who come up with all this nonsense idea
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by iamyemiakins(m): 2:31pm On May 09
I just hope this isn't just on paper but fully implemented, na civil servants dey suffer from government pass for this country.
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by chrisifeanyi: 2:32pm On May 09
K
Re: FG Considers Reduction of Costs, Merge MDAs Amid Shortfall In Revenue by Futurecrypto1: 2:32pm On May 09
They should slash their salaries to increase revenue,I don't know why someone should sit in a well conditioned office doing nothing and just his one month salary is someone's life salary
If you want to make money online check my signature,all you have to do is roll every hour. My friend got 8k after two weeks.

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