MDAs remitted N1.96tn via IPPIS in 2024
The Federal Government’s ministries, departments, and agencies remitted a total of N1.96 trillion through the Integrated Personnel and Payroll Information System in 2024, according to data from GovSpend.
GovSpend is an accountability website, for government expenditures powered by BudgIT.
The remittances were made by various MDAs, including federal universities, colleges, the Nigerian military, the Nigerian Correctional Service, and police formations and commands.
The distribution of the total N1.96 trillion remitted across the months is 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.
The Office of the Accountant-General of the Federation states that the IPPIS aims to create a centralized database to aid in manpower planning, automate personnel records, and improve salary payments with accurate deductions for taxes, pensions, and loans.
As of March 2014, according to the OAGF website, the IPPIS payroll included 257,516 employees, with 218,330 active employees.
At the time, the IPPIS coverage included 123 non-core agencies, 17 teaching hospitals and medical centers, 10 colleges of agriculture and veterinary sciences, 308 MDAs fully enrolled 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 said.
Israel emphasized that a fully functional IPPIS could significantly reduce wastage and fraud, enhancing the efficiency and transparency of the payroll system.
“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 noted.
He acknowledged the initial challenges, especially the system’s impact on banks that were previously involved in revenue collection. However, he highlighted its long-term benefits, such as reducing leakages and improving 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 analyst at Meristem Securities Limited, Femi Oladele, voiced doubts about the system’s effectiveness, stating “While IPPIS has reduced fraud, payroll fraud is difficult to eliminate entirely. There are even indications of fraudulent activities involving IPPIS staff.”
Oladele questioned the cost-effectiveness of the system, remarking, “Even a little reduction in fraud is good, but at what cost? How much are we losing to achieve this?”
He also pointed out Nigeria’s ongoing 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 further argued that to tackle payroll fraud effectively, the root cause—the pauperization of the economy—needs to be addressed.
“Without solving this malaise, payroll fraud will continue to thrive, with major frauds often committed by those in power,” he added.
