Recurrent expenditure gulps 70% govt revenue
Over 70percent of government’s revenue being spent on salaries and other recurrent expenditure, thereby shrinking resources for infrastructure development.
The Minister of Finance Mrs. Zainab Ahmed stated this at a retreat on the roles of MDAs in the implementation of the Integrated Payroll and Personnel Information System, IPPIS.
Ahmed, in her address, said 70 percent of the monthly revenue inflow into the Consolidated Revenue Fund is being spent on recurrent expenditure alone, a system she said must be corrected.
Represented at the event by her Special Adviser, Prof. Armstrong Takang, the minister said the ministry has been working to reduce high wage bills, eliminate ghost workers and block leakages.
According to her, one veritable way to make this happen is sustained implementation of the IPPIS that was introduced in 2007.
She said with the platform, the Federal Government had recorded successes such as savings and cost reduction, elimination of manual and file based system, as well as reduction and elimination of corruption and sharp practices.
Others are enabling accurate and reliable information about the size of government’s workforce, while embracing the use of scientific budgeting and estimation.
The Minister however maintains that until the platform was efficiently implemented to the stage where it was impossible to insert ghost employees or automatically remove retired personnel and transfer them to pension records, the aim of the policy would not be achieved.
“Available records from the federal ministry of finance through the activities of the Presidential Initiative on Continuous Audit, PICA, has revealed a saving of over N500 billion,” she said.
According to her, a substantial part of this amount she said was saved as a result of continuous verification of the Nominal Roll and Payrolls of MDAs. Also, direct savings from the yearly appropriations of MDAs on the IPPIS platform has grown to over N100 billion while 519 MDAs have been brought under the policy.
Mrs. Winifred Oyo-Ita, the Head of Civil Service of the Federation, said activities toward the Human Resources module of the platform had commenced fully with the online records update.
She said other modules include learning management, payroll, business intelligence and self-service, adding that the learning management component was on course and training of 25, 000 civil servants would commence soon.
On his part, Mr. Ahmed Idris, the Accountant-General of the Federation revealed that in 2017, the Federal Government saved N67 billion and N130 billion in 2018 on personnel cost using the platform.
He said that over 700,000 staff were captured on the IPPIS platform, 39 Nigeria Police Commands and three formations, four para-military agencies and retired heads of service and permanent secretaries as against 285 MDAs with over 235,009 staff in 2015.
Idris, however, said that in implementing the platform, there were challenges of institutional resistance, lack of commitments from MDAs and conflict of roles and laws among the stakeholders.