The Federal Government’s ministries, departments and agencies remitted a total of N1.96tn through the Integrated Personnel and Payroll Information System in 2024.
This is according to data sourced on Wednesday and analysed by The PUNCH from GovSpend, a website for government expenditures powered by BudgIT, an accountability firm in Nigeria.
These MDAs include federal universities, colleges, the Nigerian military, the Nigerian Correctional Service, and police formations and commands.
The remittances were distributed across the months as follows: February, N241.2bn; March, N138.6bn; April, N142.3bn; May, N161.4bn; June, N141.3bn; July, N158.8bn; August, N135.4bn; September, N547.5bn; October, N130.1bn; and November, N68.9bn.
According to the Office of the Accountant-General of the Federation, the IPPIS aims to provide a centralised database to support manpower planning, automate personnel records, and enhance salary payments with precise deductions for taxes, pensions, and loans.
The OAGF on its website stated that the IPPIS payroll had 257,516 employees, with 218,330 active employees. This was last updated in March 2014, when our correspondent checked on Wednesday.
Coverage at the time included 123 non-core agencies, 17 teaching hospitals and medical centres, 10 colleges of agriculture and veterinary sciences, 308 MDAs fully on IPPIS, and 29 MDAs on trial payroll.
An economist at Lotus Beta Analytics, Shedrach Israel, lauded the IPPIS’s achievements while emphasising the need for broader coverage.
“With the billions saved through the process, it shows that the IPPIS is valuable and missing in many public service areas. However, the challenge lies in its coverage,” he stated.
Israel stressed that a fully functional IPPIS could further eliminate wastage and fraud.
“Even with the current results, there are still loopholes. Ghost workers remain an issue. Some individuals earning salaries have not been in the country for years, yet they receive monthly pay. Expanding IPPIS to cover all public sectors is vital,” he argued.
He acknowledged initial challenges, particularly the system’s impact on banks previously involved in revenue collection. However, he noted its long-term benefits, including reduced leakages and enhanced revenue generation.
“By now, the debate should not be about whether IPPIS is needed but how to ensure its full-fledged implementation across all sectors,” Israel said.
A public policy enthusiast at Meristem Securities Limited, Femi Oladele, however expressed skepticism about the system’s effectiveness.
“While IPPIS has reduced fraud, payroll fraud is difficult to eliminate entirely. There are even indications of fraudulent activities involving IPPIS staff,” he said.
Oladele questioned the cost-effectiveness of the system, adding, “Even a little reduction in fraud is good, but at what cost? How much are we losing to achieve this?”
He also highlighted Nigeria’s persistent data challenges.
“Integration should not be a problem, but Nigeria’s data issues remain aggressively annoying. Why is it difficult to identify people receiving salaries? This data exists; we need to process it effectively to address broader economic problems,” he said.
Oladele argued that tackling payroll fraud requires addressing the root cause: the pauperization of the economy.
“Without solving this malaise, payroll fraud will continue to thrive, with major frauds often committed by those in power,” he added.
Both experts agree that while IPPIS has made significant strides, expanding its coverage and addressing underlying issues such as data inefficiencies and economic disparities are crucial for sustained impact.
They stated that the Federal Government must prioritise these reforms to achieve a more transparent and accountable public service system.
