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The Federal Government has disclosed that activities to end incident of ghost workers syndrome through the Integrated Payroll and Personnel Information System (IPPIS), has saved the nation N120 billion.
click here Accountant General of the Federation (AGF), Ahmed Idris, disclosed the fund saved in Abuja during his presentation on impact of financial reforms on the Nigerian economy, at the 22nd Annual Conference of Certified National Accountants held on Tuesday.
At the three-day conference, with the theme “Sustainable Economic Management in a Recession: Issues, Strategies and Options”, was organised by the Association of National Accountants of Nigeria (ANAN), he said the saving was not limited to detecting ghost workers, as excess personnel cost that had been channeled to non-personnel sub-heads by Ministries, Departments and Agencies (MDAs) were also recovered.
“Over N120 billion cumulatively saved as a result of the difference between the amount government would have released to the MDAs based on appropriation, and actual amount released and paid through IPPIS.
Idris added that the Treasury Single Account (TSA) had so far saved the government N108.1 billion in account maintenance fees and other charges that would have been paid to banks for managing the accounts of MDAs within the last two years.
He further hinted that TSA had eliminated MDAs bad practices including operating several accounts, therefore making it difficult for MDAs to divert public funds.
Idris also recalled that the Government Integrated Financial Management Information system (GIFMIS) went live in five years ago and presently, it had over 300 Ministries, Departments and Agencies on the system.
“GIFMIS has helped government to increase the ability of FGN to undertake central control and monitoring of expenditures and receipts in the MDAs and facilitates access to information on financial and operational performance.
“It has also helped to improve internal controls to prevent and detect potential and actual fraud. GIFMIS has also strengthened governance and accountability in MDAs through efficient and effective service delivery,” he said.
Meanwhile the Executive Director of Jos Business School, Ezekiel Gomos, during his presentation said that at present, small businesses were failing due to tough operating environment, including infrastructure, regulation, policy and taxes.
In the presentation titled: ‘SMEs as Engine of Economic Development in Nigeria,’ Gomos said government needed to encourage SMEs by creating business friendly laws, policies and regulations that would stimulate the latent talents that millions of Nigerians were endowed with.
To make SMEs more viable in the country, he called on the government to promote policies that would favour SMEs rather, than bigger companies.
“Nigerian SMEs cannot drive economic development in the 21st century with 20th century infrastructure. There is need to develop clusters or industrial parks with basic infrastructure for SMEs.
“Also, on access to finance, there is need to make the processes and procedures to access finance less cumbersome and complex. We must find innovative solutions to unlock sources of capital, while the need for SME Credit Guarantee Scheme is long overdue,” he said.