Nigeria has saved over $944.5 million through the implementation of consolidated centralized pay system (Integrated Personnel and Payroll Information System IPPIS) introduced in April 2007.
The Office of the Account General of the Federation (OAGF) revealed on Thursday in Abuja when the Head of the Civil Service of the Federation visited the office on Peer Review Mechanism of Ministries Departments and Agencies (MDAs) exercise.
The money saved resulted from the difference between the amount government would have released to those MDAs based on appropriation and the actual amount released and paid through the IPPIS.
The presentation was made by the Director of Information Technology Department of the OAGF, Mr. Afolabi Ajayi.
Ajayi said the IPPIS scheme was one of the Federal Government’s reform initiatives designed to achieve a centralised payroll system of the Federal Government.
He said that the IPPIS also facilitated easy storage, updating and retrieval of personal records for administrative and pensions processing to aid manpower planning and budgeting as well as to comply with global best practice.
The IPPIS has made it possible for prompt and regular payment of salaries to public servants and has also facilitated prompt deductions and remittances to the accounts of all third parties stakeholders.
He explained that there were 506 MDAs with total staff strength of 344,625 currently captured on the IPPIS platform with the gross monthly pay of $161 million.
Ajayi revealed that the Federal Government had also collected over $36.7 billion from the implementation of the Treasury Single Account (TSA) from 1,674 MDAs.
He said that under TSA, government was able to save over $148 million monthly in interest on ways and means that it used to pay before the full implementation of the TSA.
“Other achievements recorded since TSA became fully operational include the elimination of cash handling costs and ability to determine consolidated Federal Government cash position.
“There has also been significant improvement on Federal Government liquidity position, improved revenue collection mechanism through e-collection and better cash management capabilities,” he said.
MM/GIK/APA