THE Federal Government may have reduced overhead expenditure in the Executive and Legislative arms by 30 per cent in the face of rising personnel cost, which increased from N850 billion to N1.3 trillion between 2009 and 2010.

The government has also removed 43,000 “ghost workers” from its payroll in the last one year, as part of efforts to scale down the burgeoning recurrent expenditure, currently assailing the nation’s economy.

Former Finance Minister, Olusegun Aganga, who made these disclosures in Lagos on Saturday, said over N12 billion was saved from the personnel audit, which exposed the ghost workers.

Aganga, who spoke shortly after receiving the Young Men’s Christian Association’s award for exemplary public office life, said the trimming down of the payroll was achieved through the implementation of the Integrated Personnel and Payroll Information System (IPPIS), set up by the government for its Ministries, Department and Agencies (MDAs).

“As part of the Federal Government’s efforts to reduce the level of recurrent expenditure, in particular, personnel cost, which represents more than 50 per cent of recurrent expenditure, we have deepened the implementation of the IPPIS programme in the last one year and have identified 43,000 names, which should not have been on the payroll. This will lead to considerable savings,” he said.

The exercise, according to him, covered 112,000 workers under the first phase of the IPPIS in the three-phased programme.

Aganga, who has already been returned to President Goodluck Jonathan’s new cabinet, said the implementation of the IPPIS in the 36 MDAs had been divided into three phases and that the first phase, covering seven MDAs, saved the country over N12 billion.

The savings represent the difference between releases to the MDAs based on their nominal roll submissions before enrolment into the IPPIS and the actual salaries paid through IPPIS after the exercise.

According to the minister, who may now head the newly-created Trade and Investment Ministry, the second and third phases will cover 11 and 18 MDAs respectively.

He said: “We had to take action to reduce the overhead cost, that was why we introduced the IPPIS, where you take workers’ bio-data, through biometric process, and have their salaries paid directly through bank accounts. We’ve done that in 36 MDAs, but the exercise is ongoing. When it is completed, we expect to see considerable savings.”

He added that in the 2011 budget, the government has also reduced the level of overhead for both the Executive and the Legislature by 30 per cent and the level of borrowing from about N1.3 trillion to N850 billion.

Aganga, however, said that the nation would need to deepen the fiscal consolidation, with the 2011 budget signalling the beginning of the fiscal consolidation process.

“The introduction of the performance-based budgeting, where every penny spent has to be accounted for, is also to reduce government expenditure, while the multi-year budgeting system will reduce the incidence of uncompleted projects.”

According to him, it has now become imperative to effectively monitor projects, ensure their completion, under the government’s agenda that now guarantees continuity for assessed worthwhile policy implementation.

To leverage on the current achievements, Aganga said the government would vigorously pursue a national re-orientation programme, to restore lost values and tackle corruption.

“Once in Nigeria, we had a society where genuine service to others was routine, where people’s lives were constructed around the simple notion that ‘you shall do nothing to bring the family name to shame’, where you paid for goods left by the roadside even if the seller was nowhere in sight, where you kept an eye on your neighbour’s child as if he were yours. And if you strayed, you accepted penalty for your transgression. That was the natural order then, a good one that gave all and sundry peace of mind.

“But we lost these values over the years. The realisation of this fact motivated me to establish the Nigeria Leadership Initiative in 2006. The vision was to bring together some of the most accomplished Nigerians in Nigeria and the Diaspora to play a role in transforming this great country. NLI provides the platform for leaders to sharpen or develop their values-based leadership skills to be able to play a role in the needed transformation,” he added.

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=54074:-govt-cuts-overhead-expenditure-by-30-per-cent&catid=1:national&Itemid=559

Donlittle:

THE Federal Government may have reduced overhead expenditure in the Executive and Legislative arms by 30 per cent in the face of rising personnel cost, which increased from N850 billion to N1.3 trillion between 2009 and 2010.

The government has also removed 43,000 “ghost workers” from its payroll in the last one year, as part of efforts to scale down the burgeoning recurrent expenditure, currently assailing the nation’s economy.

Former Finance Minister, Olusegun Aganga, who made these disclosures in Lagos on Saturday, said over N12 billion was saved from the personnel audit, which exposed the ghost workers.

Aganga, who spoke shortly after receiving the Young Men’s Christian Association’s award for exemplary public office life, said the trimming down of the payroll was achieved through the implementation of the Integrated Personnel and Payroll Information System (IPPIS), set up by the government for its Ministries, Department and Agencies (MDAs).

“As part of the Federal Government’s efforts to reduce the level of recurrent expenditure, in particular, personnel cost, which represents more than 50 per cent of recurrent expenditure, we have deepened the implementation of the IPPIS programme in the last one year and have identified 43,000 names, which should not have been on the payroll. This will lead to considerable savings,” he said.

The exercise, according to him, covered 112,000 workers under the first phase of the IPPIS in the three-phased programme.

Aganga, who has already been returned to President Goodluck Jonathan’s new cabinet, said the implementation of the IPPIS in the 36 MDAs had been divided into three phases and that the first phase, covering seven MDAs, saved the country over N12 billion.

The savings represent the difference between releases to the MDAs based on their nominal roll submissions before enrolment into the IPPIS and the actual salaries paid through IPPIS after the exercise.

According to the minister, who may now head the newly-created Trade and Investment Ministry, the second and third phases will cover 11 and 18 MDAs respectively.

He said: “We had to take action to reduce the overhead cost, that was why we introduced the IPPIS, where you take workers’ bio-data, through biometric process, and have their salaries paid directly through bank accounts. We’ve done that in 36 MDAs, but the exercise is ongoing. When it is completed, we expect to see considerable savings.”

He added that in the 2011 budget, the government has also reduced the level of overhead for both the Executive and the Legislature by 30 per cent and the level of borrowing from about N1.3 trillion to N850 billion.

Aganga, however, said that the nation would need to deepen the fiscal consolidation, with the 2011 budget signalling the beginning of the fiscal consolidation process.

“The introduction of the performance-based budgeting, where every penny spent has to be accounted for, is also to reduce government expenditure, while the multi-year budgeting system will reduce the incidence of uncompleted projects.”

According to him, it has now become imperative to effectively monitor projects, ensure their completion, under the government’s agenda that now guarantees continuity for assessed worthwhile policy implementation.

To leverage on the current achievements, Aganga said the government would vigorously pursue a national re-orientation programme, to restore lost values and tackle corruption.

“Once in Nigeria, we had a society where genuine service to others was routine, where people’s lives were constructed around the simple notion that ‘you shall do nothing to bring the family name to shame’, where you paid for goods left by the roadside even if the seller was nowhere in sight, where you kept an eye on your neighbour’s child as if he were yours. And if you strayed, you accepted penalty for your transgression. That was the natural order then, a good one that gave all and sundry peace of mind.

“But we lost these values over the years. The realisation of this fact motivated me to establish the Nigeria Leadership Initiative in 2006. The vision was to bring together some of the most accomplished Nigerians in Nigeria and the Diaspora to play a role in transforming this great country. NLI provides the platform for leaders to sharpen or develop their values-based leadership skills to be able to play a role in the needed transformation,” he added.

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=54074:-govt-cuts-overhead-expenditure-by-30-per-cent&catid=1:national&Itemid=559

Well done Mr. Aganga, unfortunately that is only one part of the problem. Budget implementation was around 80% when you came in, it has spiralled down 50% under your watch. Domestic and foreign debt is shooting through the roof, with no difference in the lives of the people- all under your watch.

Conclusion: You were inept as the finance minister, you had your chance to make a difference and you blew it! Good luck to you as the new Minister of Trades and Investments- you'll definitely need it.

Interesting!

CAMPAIGN AFTER ELECTION, ABEG COMOT 4 ROAD JOOR. A better qualified and more intelligent agent of change has been brought to replace you,

The current overhead cost is unsustainable.

they keep on giving us the impression that government's high overheads is all due to the presence of ghost workers, like we don't know that the real ghosts are the ones in government houses, heading government parastatals and sitting in the hallowed chambers of the legislature. they are real ghosts because it appears that they can't be touched. Aganga should tell us something new.

is there no job security in Goldman Sacch? What is he still doing here? Maybe they have a zoologists union in abuja?

senbonzakura_kageyoshi:

they keep on giving us the impression that government's high overheads is all due to the presence of ghost workers, like we don't know that the real ghosts are the ones in government houses, heading government parastatals and sitting in the hallowed chambers of the legislature. they are real ghosts because it appears that they can't be touched. Aganga should tell us something new.

guy you too much, na real ghost dem be

but i think 50% is better

STOOOOOOOOOOOOOOOOOOOOPID MAN !!!!!!!!!
NOW YOUR GOING THAT YOU KNEW THERE IS GHOST WORKERS
FOO.L

hmm

but oga aganga, who has been benefiting from the salaries of the 43,000 ghost workers? what did you do about those that has been collecting the money, surely it must be a whooping sum from over the years-god knows how long. or the salaries of ghost workers are collected by ghost people too? naija go survive

Boboedom:

but oga aganga, who has been benefiting from the salaries of the 43,000 ghost workers? what did you do about those that has been collecting the money, surely it must be a whooping sum from over the years-god knows how long. or the salaries of ghost workers are collected by ghost people too? naija go survive

Also note that salaries are paid through banks.

Boboedom:

but oga aganga, who has been benefiting from the salaries of the 43,000 ghost workers? what did you do about those that has been collecting the money, surely it must be a whooping sum from over the years-god knows how long. or the salaries of ghost workers are collected by ghost people too? naija go survive

State or federal?
Either way, how on earth is that part of a finance minister's JD?
SMH

Ever heard of Auditors?

How did those names get on the payroll?
And what on earth is this Trade and Investment ministry about? Isn't this just more government bloat?

What i get here is that the government has the capacity to hire 43000 workers and pay for them. Since this was the case for the past how many years? There is high unemployment. Creating 43000 jobs should be a slight relief to some. The government should investigate the financial and accounting departments in these ministries and have those that stole through this means refund the money and retire them without pension. That should stop others from running this scheme in the future.

thehomer:

How did those names get on the payroll?
And what on earth is this Trade and Investment ministry about? Isn't this just more government bloat?

Good questions

Naija and its clueless leaders, 43000 ghost workers who have been promoted over the years, yet i hear there are still other thousands of ghost workers that were retired and are now ghost pensioners coupled with the "never dying" actual pensioners yet there are massive numbers of jobless youths and Gej wants them to all become entertainers and comedians. verry funny

More cuts please.