Impact Of IPPIS On Payroll Management In Selected MDAs In Nigeria

Project and Seminar Material for Human Resource Management (HRM)

Impact Of IPPIS On Payroll Management In Selected MDAs In Nigeria


This research work tends to Impact of Integrated Personnel and Payroll Information System (IPPIS)on Payroll management in selected MDAs in Nigeria the study was limited to the Nigerian civil service. This is a program introduced by the Federal Government supported by the World Bank as one of the measures of Public Service Reform. Prior to the introduction of this scheme Ministries, Departments and Agencies (MDAs) do receive their recurrent costs on monthly basis as subvention. The above arrangement gave room for the MDA’s to disburse money sent to them whenever and however it pleases them.

This therefore according to records led to financial misconduct in the Nigerian civil service. In this research survey method was used, in this case the researcher sourced data from both primary and secondary sources. Questionnaire and Interview methods were used extensively. It was found out from the research that Integrated Personnel and Payroll System (IPPIS) is generally one of the offshoots of the civil service reform program to ensure transparency and accountability in the Nigerian civil service.

However, Government is not fully technologically prepared for the program and there are some other challenges that are facing the program, they are both human and material. IPPIS if implemented properly and honestly will minimize, if not eliminate fraud in the civil service of Nigeria, and provide other benefits. This research work is poised to examine IPPIS program in Nigeria, finding out the possible challenges that are likely to be encountered in the course of implementation of the program also give some suggestions.

Table Of Content

Preliminary Page(s)

  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Organization of the work
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of Problem
  • 1.3 Purpose of study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Scope of the study
  • 1.7 Significance of the study
  • 1.8 Definition of terms

Chapter Two:

2.0 Review Of Literature

  • 2.1 Conceptual framework
  • 2.1.1 History of IPPIS
  • 2.1.2 Payroll management System
  • 2.1.3 The Nigerian Public Service
  • 2.1.4 Public Service Reform
  • 2.1.5 Payroll Accounting
  • 2.1.6 Effect of computer on the Accountant
  • 2.1.7 Personnel/Human resource management
  • 2.1.8 The Stakeholders’ Roles in the IPPIS Project
  • 2.2 Theoretical review
  • 2.2.1 The harrod-domar growth model
  • 2.2.2 Schumpeter’s theory
  • 2.3 Empirical review

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Sources of Data
  • 3.3 Questionnaire method
  • 3.4 Interview Method
  • 3.5 Population of the Study
  • 3.6 Sample size
  • 3.7 Validity of study
  • 3.8 Test Statistics

Chapter Four

4.0 Data Presentation And Analysis

  • 4.1 Presentation and Analysis of Data
  • 4.2 Hypothesis Testing

Chapter Five

5.0 Summary Of Findings, Recommendation And Conclusion

  • 5.1 Summary of Findings
  • 5.2 Recommendations
  • 5.3 Conclusion
  • References

Chapter One


1.1 Background Of The Study

In Nigeria all the Ministries, Departments and Agencies (MDA’s) draw their personnel cost from the Consolidated Revenue Fund (CRF). The exert number of Personnel being paid in the Nation cannot be easily ascertained due to non-availability of required and necessary information. As a result of none availability of the exert number of Public servants in the country, it has become difficult for government to have an accurate wage data for planning and budgeting purpose. The Integrated Personnel and Payroll Information System (IPPIS) project seeks to resolve this and also reduce the Federal Government expenditure on Overheads. In 2007, the Federal Government of Nigeria and the World Bank initiated Integrated Personnel and Payroll Information System.
The Goals set by the Federal Government include the following:

  1. Implement an Integrated Solution
  2. Improve human management effectiveness
  3. Increase confidence in Govt. Payroll cost and expenditure management.
  4. Significantly improve overall management reporting and planning.

Amongst the objectives of the reforms of Government is to entrench transparency and accountability in the public service Human Resources (HR) records and payroll administration. Successive Government has observed gross inadequacies in the payroll and personnel records in the public service. Several efforts have been made to reduce these challenges, but it tends to worsen with time, resulting to greater difference in accessing reliable data for human resources planning and management, chaotic state of pension administration; „ghost worker‟ syndrome and various forms of payroll and credential fraud.

Manual computation of salary and documentation of personnel information has been compounding the problem of transparency and accountability. This also affects accuracy in computation of salary hence overpayment or underpayment of salaries, omission of staff name in payment, wrong calculation of promotion and pension that is due to staff and Ex-staff as the case may be. With the introduction of the Integrated Personnel and Payroll Information System scheme, if properly implemented and managed, will go a long way in eradicating or at least bring the above mentioned problems to the barest minimum.

1.2 Statement Of Problem

Record showed that the Government of Nigeria spends almost 50 to 60% of its revenue on Personnel management every year at the detriment of other sectors of the Economy. According to the Honourable minister of Finance, Mr Olusegun Aganga in his address at the flag off of Integrated Personnel and Payroll Information System Phase II workshop held at the Sharaton Hotels Abuja, he said that in 2011 Federal Government Budget was projected at #4,226.19 billion, comprising #196.12 billion(4%) for statutory transfers; #542.38 billion (13%) for Debt servicing; #2,481.71 billion (59%) for Recurrent (Non-debt) expenditure and #1,005.99 billion (24%) for Capital expenditure. This huge bill it is said if not monitored and cut down through (appropriate government policy and reform program, we may wake up one day to see that all Govt. revenue is spent in paying salaries at the detriment of competing needs.

Ghost worker syndrome is not a new thing in Nigerian Public service, where a non-existing employee is being paid monthly. There are multiple payments of emoluments to a single employee and credentials are falsified. People have access to their age of retirement.

It is a big challenge, that at this age when almost every aspect of the world economy is computerized, Nigeria is still depending on manual records for her personnel and payroll information. Workers data are kept in paper files, their salaries are calculated manually and as such mistakes and fraud in form of overpayment, underpayment and payment of ghost workers always occur.

Government of Nigeria does not have the accurate number of civil servants and her budget is always an estimate. This has created some loop holes, whereby some ministries budget more than they require and use the excess for some other things other than payment of salary and allowances. Sometimes some will get personnel allocation that is quite less than what they need and for that reason they place some workers especially the new ones on allowances for many months thereby subjecting them to unnecessary hardship.

1.3 Purpose Of The Study

The main objective of this study is to examine the impact of IPPIS on Payroll management in selected MDAs in Nigeria.

The following are the specific objectives of the study:

  1. To determine the extent to which proper implementation of Integrated Personnel and Payroll System program will eliminate payroll fraud in the Nigerian civil service.
  2. To determine the possible effect of Integrated Personnel and Payroll System on Recurrent Expenditure of the Government.
  3. To ascertain how Integrated Personnel and Payroll System will ensure the safety of civil servants Personnel information.
  4. To determine the extent to which the Nigerian civil servants personnel records can be relied upon.
  5. To find out how prepared the Government and other stakeholders are towards actualization of the Integrated Personnel and Payroll System objective.
  6. To determine the extent to which the Integrated Personnel and Payroll System program will help the Government in Planning and Budgeting.

1.4 Research Questions

  1. How can proper implementation of Integrated Personnel and Payroll Information System program eliminate payroll fraud in the Nigerian civil service?
  2. What are the possibilities of Integrated Personnel and Payroll Information System positively affecting the recurrent expenditure of the Nigerian Government?
  3. Can the Integrated Personnel and Payroll Information System ensure the safety of the civil servants personnel information?
  4. To what extent can the Nigerian civil servants personnel records be relied upon?
  5. 5. How prepared are the Nigerian government and the IPPIS stakeholder towards actualization of the IPPIS objectives?
  6. To what extent can the Integrated Personnel and Payroll Information System program help the government in Planning and Budgeting?

1.5 Research Hypothesis

HO1: Integrated Personnel and Payroll Information System will not properly ensure civil servants Personnel information safety and integrity

HO2: Proper implementation of Integrated Personnel and Payroll Information System will not significantly eliminate payroll fraud and will have no prominent effect on recurrent expenditure.

HO3: Integrated Personnel and Payroll Information System will not significantly help the Government in planning and budgeting.

1.6 Scope Of The Study

This work overviewed Integrated Personnel and Payroll Information System (IPPIS) as an Information and Computer Technology (ICT) system for the reformation of MDA service in Nigeria, its implementation and possible hindrances. The old system of personnel records, administration of monthly payroll with the new IPPIS system were thoroughly studied and discussed. Reason/s for Government reverting to the new system was discussed. The researcher used just small percentage of four Federal Government Ministries in Enugu that are among the ones already captured in the first phase of the program for the purpose of the research.

1.7 Significance Of The Study

  1. The study will enable the Government to put more effort in ensuring a successful implementation of the program in order to achieve their objective and to guard against failures, lapses, sabotages and other likely challenges.
  2. It will help workers to plan their income accordingly, prepare and be ready for their retirement.
  3. This study will establish the fact that IPPIS program has come to improve and perfect the duties of Personnel and Payroll staff and not to displace them.
  4. This research stands as an aid and basis for future researchers in this area of study.

1.8 Definition Of Terms

There is need for us to have a clear understanding of some of the key words and terms that will be used in the course of this study.


Payroll is the sum of all Financial records of Salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time.


Personnel simply defined according to the Oxford dictionary is staff; persons employed in any work, especially public undertakings and the armed forces.

Biometric Data:

Biometric data is combination of words and will be defined separately before summarizing it. According to the Longman Contemporary English Dictionary –Bio is a form of Life and living thing. Metric- concerns the system of measurement based on the meter and kilogram. Data is just fact or information. For the purpose of this research biometric data is simply Fingerprints and passports photographs captured during enrollment process.


This can be seen as a person or one who has interest (stake) in a system or is affected by or who can influence but not directly involved with the system. Stakeholders in the IPPIS project include the following; Custodian of the system, Civil servants, civil servants, operators, Personnel and Financial Information managers in the MDAs, control agencies and third party agencies e.g. FIRS, BOIR, etc .

Cadre Management:

Cadre is inner group of highly trained and active people in an organization or establishment as the case may be.

Procurement Reform:

Is to obtain especially by effort or careful attention. In this case, as it is established by the Federal Government Legislative.


The Librarian’s Glossary compiled by L.M. Harrod defined Data to be a general term for information, used to distinguish input and output information from instructions, and also to indicate the absence, or presence, of a certain condition, such as magnetic field. Base of cause is a centre or point from which a start is made in an activity, often where supplies are kept and planes are made.

Chapter Five

Summary Of Findings, Recommendation And Conclusion

5.1 Summary Of Findings

In the course of this study and during the analysis of data, the researcher made some observations and they are summarized as follows:

  1. Workers Salaries are being paid on time unlike before when it is paid most times late.
  2. Mistakes and discrepancies in salary are takes time before it is rectified.
  3. Most of the Ministries up till the commencement of the Integrated Personnel and Payroll scheme where still pay rolling workers manually.
  4. Civil Servants do not like IPPIS because of their present poor performance and most importantly due to the fact that they no longer enjoy the extra pay from extras of the monthly Personnel Subvention.
  5. Some MDAs have refused to be captured in the scheme.
  6. Government is much interested in carrying out the program according to Honorable Minister of Finance’s word, because of the whopping sum saved during the Pilot implementation stage.
  7. Nigeria is not quite technologically prepared for the program.
  8. There is lack of co-ordination between the IPPIS management and the stake holders.
  9. IPPIS will actually help Government in planning and budgeting.
  10. Capturing of civil servants bio-data will make the existence of ghost workers difficult and minimize payroll fraud
  11. Newly employed civil servants do not receive salary on time due to the long protocol that is involved before pay rolling a new staff.
  12. It is no longer easy to control or discipline workers by stopping or delaying their salary because of the long process it will go before it is implemented and to re-instate back the persons concerned.
  13. Salary advances which are usually granted to newly employed staff and transferred civil servants are not easily obtained.
  14. Deceased civil servants can still be paid salary without the government knowledge of it, unless MDA concerned decides to inform the government.

5.2 Conclusion

The Integrated Personnel and Payroll System is a good program no doubt. The whole world is now in the era of Technological knowhow and Nigeria cannot afford to be left behind. Government goals for introducing IPPIS program which includes improved human management effectiveness, increase confidence in government payroll cost and expenditure management, improvement in overall management reporting and planning, etc can to an extent be achieved if adequate care is taken to ensure proper implementation of the program.

Entrenchment of transparency and accountability in the Public Service Human Resource records can be significantly achieved with proper restrictions and adequate security measures put in place.

However, the fact remains that there are people who are expert in negative acts in every society, Nigeria is not an exception. Nigeria is one of the countries where people, instead of developing new ideas and improving on existing technology, they will rather develop on how to scatter and destroy other people’s effort. Government should therefore enact laws and decrees that will be guiding the program. Offenders of the law should be punished without fear or favor; this will act as a deterrent to others.

According to Ahmed Usman comment in the Punch newspaper, in this era of ICT when the world has become a global village, processing of biodata and other information should not take more than a month. It is sad that five months after “capturing” and screening no salary payments have been effected.

A civil servant that has not been paid for five months can easily be tempted with corrupt practices. It is unfortunate that when it is time to pay, the arrears will be staggered between four and five months. Civil servants who obtained personal loans from banks are now paying penalties for default in servicing the loans for reasons that are not of their own making.

I am therefore appealing to the Minister of Finance and the Accountant-General of the Federation to effect payment to the affected federal civil servants to alleviate their sufferings.

Findings and suggestions made in this research are not absolute and conclusive. All these will only add to already available knowledge and information on the subject. No doubt that the government wants the Integrated Personnel and Payroll Scheme to succeed in Nigeria as it did in other developed countries, this can be achieved if only more interest is put to careful implementation of the project with the co-operation of the civil servants.

5.3 Recommendations

The researcher having made various observations in the course of the research work, hereby made the following suggestions, which if taken into practice by the Government and civil servants as well ,will make a lot of remarkable improvement to the Scheme.

(1) Training of operators of the systems

Government should budget enough money and make fund available for training and Re-training of both civil servants that will be handling the program and the stake holders to the program.

(2) Provision of fund for the purchase of new and maintenance of infrastructures

Government should also provide fund for purchasing of new machines, updating and replacement of Systems and Electronic infrastructures needed for the continuity and sustenance of the scheme.

(3) Monitoring and inspection team

There should be committee set up for adequate monitoring and inspecting of the program so as to ensure that it is carried out the way it was planned. Also the equipments that were supplied to the MDAs for the scheme should be inspected from time to time to ensure that they are installed and are used accordingly.

(4) Adequate attention to people’s complaints

Government should make sure that they improve on the program by making use of feedback from people. This can be achieved by ensuring that the IPPIS office receives both civil servants complaints and that of the concerned parties and equally attend to them.

(5) Sincerity of civil servants

Workers should endeavor to report on time any case of death, resignation of staff and study leave without pay, etc.

(6) Other issues to be checked by the government include the following
  • Making sure that there is adequate and steady power supply for effective transfer of information and computation of salary.
  • That some dubious and selfish individuals or groups do not sabotage the program due to political or other reasons.
  • Make sure that money deducted from workers are remitted to the third party concerned and on time.

Impact Of IPPIS On Payroll Management In Selected MDAs In Nigeria

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