Paragraph 1: The Federal Government of Nigeria has issued a decisive directive mandating all Ministries, Departments, and Agencies (MDAs) to enroll in the Integrated Personnel and Payroll Information System (IPPIS) or face exclusion from the 2025 personnel budget. This ultimatum, communicated through the 2025 budget call circular, underscores the government’s commitment to streamlining payroll management and enhancing transparency in public expenditure. The IPPIS, introduced in 2007, serves as a centralized platform for processing and paying salaries to federal government employees, aiming to eliminate ghost workers and curb fraudulent practices. The government’s firm stance on IPPIS enrollment reflects its determination to ensure accountability and efficient resource allocation within the public sector.
Paragraph 2: The 2025 budget proposal allocates a substantial N9.64 trillion for personnel and pension costs, representing 20.13% of the total N47.9 trillion national budget. This significant allocation includes N1.02 trillion earmarked for Government-Owned Enterprises (GOEs). The substantial increase of N3.56 trillion (58.7%) compared to the 2024 provision is primarily attributed to the implementation of the new national minimum wage and its consequential adjustments across all cadres of the federal civil service. This increase reflects the government’s commitment to improving the welfare of its employees and addressing the rising cost of living. The breakdown further reveals a projected rise in personnel costs for MDAs from N4.79 trillion in 2024 to N7.17 trillion in 2025, while personnel costs for GOEs are expected to increase from N608.41 billion to N1.02 trillion within the same period. Provisions for pensions, gratuities, and benefits for retirees will also see a substantial increase from N673.13 billion in 2024 to N1.44 trillion in 2025.
Paragraph 3: The Federal Government had earlier indicated a projected 60% increase in personnel costs for 2025, primarily due to the new minimum wage implementation. With the 2024 personnel expenditure budgeted at N4.1 trillion, this 60% increase translates to an additional N2.46 trillion, totaling N6.56 trillion. This projection aligns with the figures presented in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, emphasizing the government’s proactive approach to financial planning and its commitment to fulfilling its obligations to its workforce. The mandate for all MDAs to comply with the IPPIS system reinforces the government’s focus on accurate salary payments and transparent financial management. The IPPIS has already demonstrated its effectiveness in centralizing payroll management and reducing fraudulent activities within the public service.
Paragraph 4: As of 2020, 696 MDAs were enrolled on the IPPIS platform, covering over 1.1 million federal government employees. By 2021, the number of enrolled MDAs had increased to 711, demonstrating the ongoing efforts to integrate all federal government entities into the system. The IPPIS has resulted in significant cost savings for the government by eliminating thousands of ghost workers, highlighting its crucial role in promoting fiscal discipline and accountability. The platform’s success in identifying and removing ghost workers has underscored its efficacy in combating corruption and ensuring that public funds are utilized appropriately.
Paragraph 5: To further enforce compliance, the Federal Government has issued a stern warning to Chief Executive Officers and Accounting Officers of MDAs, holding them personally accountable for their staff’s enrollment in IPPIS. They face potential sanctions if their MDAs fail to meet the stipulated IPPIS compliance standards for budget submissions. This measure reinforces the seriousness of the directive and ensures that leadership within MDAs actively participates in achieving full IPPIS integration. The Budget Office of the Federation (BOF) has prepared personnel cost estimates based on information obtained from the IPPIS and submissions by MDAs, and each MDA will be informed of its allocated personnel budget for 2025. Furthermore, the BOF is collaborating with the Independent Corrupt Practices Commission (ICPC) to address budgetary abuses, including personnel budget infractions and lack of standardization in capital budget preparation.
Paragraph 6: The ICPC’s comprehensive review of the IPPIS uncovered 22,074 suspicious personnel on the federal government payroll, costing the government N37.10 billion in 2023. These suspicious personnel were found across MDAs, tertiary institutions, and the Nigeria Police Force. Despite the ongoing push for universal IPPIS adoption, the Federal Government recently issued new guidelines for federal tertiary institutions to transition out of the system. This move aims to grant these institutions greater autonomy in payroll management and improve efficiency. Starting in November 2024, tertiary institutions will manage their payroll independently, subject to verification by the Office of the Accountant-General of the Federation’s IPPIS department. Payments will be processed through the Government Integrated Financial Management Information System (GIFMIS). This transition reflects a nuanced approach to payroll management, seeking to balance centralized control with the specific needs and operational realities of tertiary institutions.
