Former presidential candidate of the Labour Party, Peter Obi has said that the Federal Government’s cut in its official entourages is a mere scratch on the surface because it is limited in scope.

Obi, while reacting to the recent announcement by the federal government, said on his official X handle @PeterObi on Wednesday, January 10, 2024, “a 60% reduction in federal official overseas trips, a 60% reduction in the size of delegations” as well as“a 60% reduction in the total cost of governance at the Federal level” should be the ideal thing to do as that would lead to substantial savings, which in turn should be used to fund various other sectors.

“The just 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 of halting wastage. But this measure is just scratching the surface as it is limited in scope and can only lead to a very negligible saving. 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. Most importantly, what our current economic reality demands is a 60% reduction in the total cost of governance at the Federal level. This implies that the recently passed federal budget needs to be revised to cut all wasteful and unnecessary items. This is the level of cost-cutting and savings that can meaningfully impact the present state of the economy. This level of cut in the cost of government should lead to substantial savings.

“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,” Obi said.

The former presidential candidate further said that Nigerians need to be informed of how much this cut will generate as savings and where such savings will be applied, adding that “wasteful expenses and spending on inessential luxury items” should be reduced.

“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.