Fresh moves by the federal government of Nigeria to cut down on costs of governance will make more funds available to cater to masses in the country, the presidency has revealed.

Presidential media aide, Femi Adesina disclosed that the federal government is cutting down the cost of governance by stopping “non-critical and administrative capital spending.”

This is expected to lead to an increase in the number of cash transfer beneficiaries, N-Power volunteers and sundry traders enjoying small and micro-loans through the MarketMoni and TraderMoni schemes.

According to him, the plan involves a ban on the purchase of non-essential official vehicles.

This was contained in a document entitled ‘what you need to know about the Nigeria Economic Sustainability Plan (NESP)’ by Femi Adesina, special adviser on media and publicity to President Muhammadu Buhari on Thursday.

AFNEWS understands the NESP document is the outcome of deliberations by a committee set up by President Buhari and chaired by Vice-President Yemi Osinbajo to advise on how the government can manage its economy in the reality of challenges posed by the global coronavirus pandemic.

Adesina explained that the President has approved the implementation of the report by the committee which is seeking to expand the social investment programmes (SIPs) and cut off unnecessary government spendings.

“The president has approved the implementation of the Report on the Rationalization of government agencies. The NESP will also target a reduction in average production costs of crude oil. Also, the Integrated Personnel and Payment Information System (IPPIS) will be expanded to cover all Federal Government MDAs,” he said.

“Non-critical and administrative capital spending will be eliminated, including purchase of vehicles (except for ambulances, fire-fighting vehicles and other essentials).

“The implementation of the NESP will see an increase in the number of cash transfer beneficiaries, N-Power volunteers and sundry traders enjoying small and micro loans through the MarketMoni and TraderMoni schemes.

“The pre-existing conditional cash transfer will also be extended to cover a larger number of extremely poor and vulnerable Nigerians.”

The presidential spokesman added that NESP will give the state governments and the federal government an opportunity to work together on projects that will be more beneficial to vulnerable Nigerians.

“It also provides for the negotiation of suspension of ISPO payments by States, moratorium on deductions in respect of bailout loans, and encourages States to attain the conditions outlined by SIFTAS and other World Bank programmes, in order to access external support,” he said.

“The ESC will also monitor implementation of the Plan while the Vice President will regularly brief the President on progress made.”