The Federal Government has decided to make no provision in the 2021 budget for personnel cost of employees who are yet to be captured in the Integrated Payroll and Personnel Information System (IPPIS).
IPPIS is an Information Communications Technology (ICT) project initiated by the federal government to improve the effectiveness and efficiency of payroll administration of its MDAs.
The decision was revealed in a directive conveyed in a “2021 Personnel Cost Budget Call Circular’,” with reference number BD/2000/EXP/S.651/991 issued by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, and dated April 23, 2020.
According to the circular, all ministries, departments and agencies (MDAs) are to compute and submit their personnel cost budgets for the 2021 financial year ahead of the planned submission of next year’s fiscal plan to the parliament by September.
The federal government has been having a running battle with the Academic Staff Union of Universities (ASUU) over the union’s insistence that its members should not enroll on the IPPIS platform, which is compulsory for all public service workers.
The circular was copied to the Office of the Chief of Staff to the President, Deputy Chief of Staff to the President, Office of the Vice President, Ministers/Ministers of State, Secretary to the Government of the Federation, Head of Civil Service of the Federation, chairmen of commissions, permanent secretaries, service chiefs/Inspector General of Police and the Auditor General for the Federation as well as heads of extra-ministerial departments/directors general/chief executives of parastatals and agencies.
Ahmed urged ministers, heads of extra-ministerial departments and accounting officers of MDAs, who are saddled with the responsibility for the preparation and submission of the personal budgets of their respective MDAs to commence the process of preparing the 2021 personnel cost budgets.
She said: “It is necessary to commence the process of preparing the 2021 personnel cost budget in spite of the COVID-19 lockdown to enable a diligent exercise, which will ensure adequate budgetary provisions for MDAs’ personnel costs, as well as submission of the 2021 budget proposal to the National Assembly by September.”
She urged all MDAs to strictly adhere to the instructions and guidelines set out in the call circular, adding that on personnel cost computation, they should note that payment of salaries and allowances are for legitimate staff only.
“Any unauthorised payments from personnel cost will attract appropriate sanctions. Therefore, you are required to validate the payroll for your sector/MDA, obtained from the IPPIS.
“Please note that no personnel cost provision will be made in the 2021 budget for any serving employee of the FGN who is not captured in the IPPIS,” the circular said.
It also urged MDAs to use the salary and allowances structure approved by the National Salaries, Incomes and Wages Commission (NSIWC) as applicable to their respective organisations to validate the payroll.
The circular also directed that the non-regular allowances in the payroll should only be provided for those employees who are clearly entitled under their terms of service, and circulars issued by NSWIC, urging MDAs to familiarise themselves with the approved salary and allowances structure for proper guidance.
“MDAs are required to cross-check the appropriateness of grade level/step for all the staff on the payroll, including provision for annual increments.
“MDAs are not required to provide for 2021 promotions of their staff because such promotions cannot be predicted with certainty.
“The budgeted personnel cost should, however, reflect all promotions already approved and in effect. Provision for 2021 promotions will be made under public service wage adjustments in service wide votes,” the circular said
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