Tayo Busayo, Abuja
DAILY COURIER - The Federal Government has announced a comprehensive plan to transition Federal Tertiary Institutions (FTIs) out of the Integrated Personnel and Payroll Information System (IPPIS), granting them increased autonomy in managing their personnel and financial affairs. This strategic move, approved by the Federal Executive Council (FEC), marks a significant shift in the financial management of public universities and other tertiary institutions across the country.
In a circular issued on Tuesday, the Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein, outlined the framework for the phased withdrawal from IPPIS. According to the circular, while payrolls for October 2024 will still be processed through the IPPIS platform, FTIs will take over payroll management from November 2024 onward. The Office of the Accountant-General of the Federation (OAGF) will, however, continue to verify and make payments through the Government Integrated Financial Management Information System (GIFMIS).
The transition is part of a broader initiative by the government to grant public tertiary institutions more control over their financial operations, a move long advocated by educational stakeholders. The aim is to empower institutions to handle their own payroll systems while maintaining oversight from the OAGF to ensure transparency and accountability.
As part of the transition, the AGF directed all FTIs to complete and submit their GIFMIS Enrolment Forms by October 21, 2024, to gain access to their personnel cost budget lines on the GIFMIS platform. This process also requires the verification and uploading of employee bank account information onto the platform by the same deadline.
“Institutions must adhere to these timelines to ensure a smooth and effective transition,” Dr. Madein emphasized. She urged Accounting Officers at each institution to ensure that all relevant stakeholders were informed about the new requirements and deadlines. Institutions have also been instructed to submit any outstanding promotion and salary arrears to the Budget Office of the Federation for immediate processing.
The transition from IPPIS to GIFMIS comes as part of the government’s broader strategy to improve financial management in public institutions. By shifting payroll responsibilities back to tertiary institutions, the government hopes to address long-standing concerns from academic staff unions and institutional leaders, who have frequently raised issues about delays and inaccuracies in salary payments under IPPIS.
The rollout of the exit plan is expected to be monitored closely, with the AGF’s office carrying out verifications during the transition period. The OAGF will continue to oversee payments, ensuring that the new system operates efficiently and that all personnel costs are accurately reflected.
The Federal Government’s move to decentralize payroll management comes amid a growing demand for reforms in Nigeria’s higher education system. With the newly-granted financial autonomy, tertiary institutions are expected to improve internal efficiency and resolve issues relating to staff remuneration and promotions more swiftly.
The decision to exit IPPIS also follows months of negotiations with various academic unions, including the Academic Staff Union of Universities (ASUU), which had long criticized IPPIS for allegedly mismanaging salary payments and creating unnecessary bureaucracy. ASUU had advocated for a more decentralized and institution-specific payroll system, one that aligns more closely with the unique needs of Nigeria’s tertiary education sector.
In response to the new plan, many academic and administrative leaders across Nigeria’s universities have expressed cautious optimism, acknowledging that the transition to GIFMIS could improve financial management, but also stressing the need for thorough training and preparedness to handle the new system.
As November approaches, all eyes will be on how effectively the transition from IPPIS to GIFMIS is implemented. The Federal Government, through the AGF’s office, has committed to working closely with FTIs to ensure the success of the initiative and avoid any disruptions to payroll and personnel management during the handover period.
This exit plan represents a key milestone in the Federal Government’s efforts to modernize and decentralize financial management in public tertiary institutions, paving the way for more efficient governance and better service delivery in Nigeria’s higher education sector.