All federal government staff across all the ministries, departments and agencies (MDAs) who are not enrolled on the Integrated Payroll and Personnel Information System (IPPIS) will not get paid until they are able to do so.
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The Minister of Finance, Budget and National Planning, Mrs. Zainab Shamsuna Ahmed disclosed this Tuesday at the public presentation of the medium term expenditure framework and fiscal strategy paper (MTEF/FSP).
The minister said this is critical to block leakages and reduce recurrent expenditure of the federal government.
She said “personnel cost (inclusive of Pension Costs) at over N3.0 trillion has continued to rise. The FGN is however taking steps to contain the rising personnel costs, including an October 2019 deadline by Mr. President for all MDAs to implement IPPIS on the expenditure side of the framework, we have tried to keep most expenditure items as low as possible.”
The Minister also said states will begin to pay for the bailout they had received in 2016 from the federal government.
She said the bailout funds belonged to the Central Bank (CBN) and will be deducted from source at the September 2019 FAAC revenue sharing and remitted to the CBN.
She however, didn’t say how much percentage of the N614bn will be deducted on a monthly basis until the debts are liquidated.
On the key assumptions for the MTEF, she said the national consumption is projected at N122.75trn whilst oil projection is pegged at 2.18 million barrels per day at $55 per barrel.
She also said DGP growth rate is projected to hit 2.93 percent with a nominal GDP of N142.96trn with an inflation rate expected not to be more than 10.81 percent.
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