Labour Party Presidential Candidate Peter Obi has expressed that the recent 60% reduction in the size of federal official entourages on travel is a commendable act but not a meaningful one, as it only results in ‘very negligible saving.’
On his official X account, Obi underscored the necessity for the federal government to disclose the savings that the 60% reduction will yield. He stated, “We are yet to be told how much savings this will amount to.
“While this modest step may be somewhat commendable, what is desirable should be both a 60% reduction in federal official overseas trips as well as a 60% reduction in the size of delegations,” he further added.
Obi, the former governor of Anambra State, asserted that the current state of Nigeria’s economy calls for a 60% cut in the overall cost of governance at the federal level.
He suggested that this implies that the Federal government needs to revisit the recently approved federal budget and eliminate all wasteful and unnecessary items, as ‘this is the level of cost-cutting and savings that can meaningfully impact the present state of the economy.’
Moreover, Obi proposed that the savings accumulated from cost-cutting should be allocated to stimulate the productive sectors of the economy.
He stated, “Such savings should be used to fund the productive sectors of the economy and the much-needed social investments, especially in three key areas: education, healthcare, and the migration of millions of Nigerians from poverty.
“Most importantly, it is not enough to announce arbitrary cuts in the size of federal official entourages. The nation needs to be informed of how much the measure will save and where such savings will be applied.
“Our problem as a nation has gone beyond token populist gestures and announcements. We must be informed of the real details of the measures being implemented on our behalf.
“For a government that has made a hobby of indiscriminate borrowing, the only way to salvage the economy is to drastically cut the cost of government by reducing wasteful expenses and spending on inessential luxury items,” he added.