The federal government said last week that following the implementation of the first phase of the Integrated Personnel and Payroll Information System (IPPIS), it has been able to save over N12 billion. The IPPIS project commenced in April 2007 with the enrolment of seven pilot Ministries, Departments and Agencies (MDAs).
IPPIS is the reform programme conceptualized at the Bureau of Public Service Reform (BPSR) for the purpose of centralized payment of all civil servants in its employment.
Mr. Olusegun Aganga, minister of finance, who spoke at the flag off of the IPPIS Phase II / Sensitisation and Change Management workshop, said government would ensure that it achieves the desired goal of ensuring prudent spending in all ramifications for socio-economic development of the country.
Aganga explained that the saving was made from the difference between releases to MDAs based on their nominal roll submissions before their enrolment into IPPIS and the actual salary paid through IPPIS after the exercise.
“Our experience during the pilot implementation of the IPPIS in 16 MDAs was a saving in excess of N12 billion,” he said. “These savings represent the difference between releases to MDAs based on their nominal roll submissions before their enrolment into IPPIS and the actual salary paid through IPPIS after the exercise.”
The minister stressed that the project is critical to the nation’s fiscal reform programme. Accordingly, he made it clear that its implementation would not only be accelerated, but also expanded to cover all MDAs and parastatals. “It is my expectation that all MDAs drawing personnel costs from the Consolidated Revenue Fund (CRF) will use the IPPIS to guarantee that the era of estimated releases will be over and ensure that more savings are realised,” he said adding that the focus of IPPIS is not just on savings but also on increasing the efficiency in management of public funds.
He assured all stakeholders that the implementation of the reform programme is not an exercise that targets anyone negatively but it was being instituted to block leakages, ensure discipline and transparency in public financial management, particularly as it affects overhead costs.
“One of our policy objectives is to improve efficiencies and block all leakages in the payroll system and avoid a situation that sees an expansion in recurrent expenditure to the detriment of competing needs,” the minister said. “The impact of the successful implementation of this project will be far-reaching. The benefits of IPPIS are patently clear as it is a vital tool in our package of reforms aimed at helping this country achieves economic growth and development.”