IPPIS Tension: IPPIS Implementation, FG’s Wage Bill To Hit N3trn By 2021.

Despite the implementation of the Integrated Personnel Payroll Information System by the Federal Government, the wage bill in Ministries, Departments and Agencies of Goverment has been projected to hit N3.053trn by next year

The N3.053trn according to figures obtained from the Ministry of Finance, Budget and National Planning is the amount that is being projected for personnel costs of MDAs in the 2021 Federal Government budget.

The 2021 budget proposal, according to findings is expected to be submitted to the National Assembly before the end of September this year.

Analysis by ODOGWU MEDIA of the figures from the Ministry of Finance showed that MDAs personnel cost is being projected to increase by N226bn or eight per cent from the N2.827trn approved in the 2020 budget to N3.053trn next year.

This is despite the implementation of the IPPIS initiative which is aimed at reducing personnel costs by eradicating the issue of ghost workers.

President Muhammadu Buhari had last year directed the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed to ensure that all employees of the Federal Government are enrolled on the IPPIS platform.

The IPPIS scheme which started in April 2007, is one of the Federal Government’s reform initiative designed to achieve a centralized payroll system of the Federal Government.

It facilitates easy storage and retrieval of personnel records for administrative and pensions processing to aid manpower planning and budgeting as well as to comply with global best practice.

Through the implementation of the IPPIS, over N273.8bn had been saved by the Federal Government.

With about 602 MDAs currently enrolled on the IPPIS platform, analysts have said the impact of the initiative would have been reflective in the budget through a decrease in the amount that is being spent on the wage bill of government.

Analysis by this Newspaper showed that over the years, personnel and pension costs account for the largest single item of expenditure in the Federal Government budget rising steadily in recent times from N1.88trn in 2016 to N2.06trn in 2017 and N2.56trn in 2019.

For instance, in the 2017 Federal Government budget, personnel costs accounted for about 77 per cent of total revenues as against 64 per cent in 2016.

In the 2019 budget, personnel costs amounted to 63 per cent of total revenues of goverment.

Similarly, personnel emoluments accounted for about 37 per cent of total Federal Government expenditure between 2015 and 2017 and 31 per cent in 2019.

To realise the goal of controlling personnel costs, the Federal Government said it had introduced measures such as a temporary freeze on non-critical recruitment outside of the Security and Healthcare sectors.

To further improve fiscal transparency, the government according to its Fiscal Strategy Paper for 2021 to 2023 said it remains committed to improving the efficiency and quality of its spending.

The Federal Government in the document stated that public expenditure will continue to be properly scrutinized to ensure value for money.

In order to enhance fiscal prudence and transparency, the Government said it would implement a number of measures such as implementation of Oronsaye Report to reduce the number of MDAs; consolidation of Government rental accommodation and centralization of electricity payment; and strengthening treasury financial controls to speedily detect, eliminate and sanction instances of waste, misappropriation and corruption.

It also said a detailed review of recurrent and capital expenditures will be undertaken in advance of the 2021 Budget, while spending trends and pressures will be examined to help identify ways of addressing the challenges arising in the context of fiscal policy.

While admitting that the high wage bill poses a major challenge to govenment finance, the document stated, “An important fiscal strategy to keep public expenditures at sustainable levels in the medium term is to rationalize the Government wage bill.

“The aim is to gradually clean the Government payroll. Towards this end, efforts will be intensified to complete the extension of the Integrated Payroll and Personnel Information System to all MDAs to improve the effectiveness and efficiency of payroll administration.

“In addition, all modules of the Integrated Personnel and Payroll Information System will be fully implemented across all agencies of government.”

Speaking on the cost of governance, the Centre for Social Justice called on President Muhammadu Buhari to reduce the number of his cabinet members to 15 in order to reduce the cost of governance.

The Lead Director, CSJ, Eze Onyekpere said the reduction should be done as the government begins the implementation of the Stephen Oronsaye committee report.

He said “There is need for for strong political will on the part of the President and the composition of a knowledgeable team to review the report and white paper of the Orasanye committee report in the light of changes and new circumstances that may have emerged since 2014.

“There is also need to reduce the size of the federal cabinet through amendment of the Constitution to ensure that federal ministers do not exceed 15 in number and also limit the number of assistants and advisers to the President to a reasonable number.

Onyekpere urged the government to reduce the number of members on each of the governing boards or councils of all agencies, parastatals and commissions to not more than seven.

He said the membership and composition of boards and commissions should be based on merit and competence.

He also said a single seven member board should be appointed to serve and oversee all the River Basin Development Authorities as against the current practice of one board per River Basin Development Authority.