President Muhammadu Buhari says with effect from the end of October this year, any government worker not captured on the Integrated Payroll and Personnel Information System, IPPIS will not be paid his or her monthly salary.
The President made the declaration on Tuesday in Abuja, while presenting the 2020 budget proposal to the legislators.
He said government intends to manage personnel costs in line with its well-focused fight against corruption.
President Buhari said that all agencies of government must obtain permission and follow due process as they embark on any recruitment exercise.
“We shall sustain our efforts in managing personnel costs. Accordingly, I have directed the stoppage of the salary of any Federal Government staff that is not captured on the Integrated Payroll and Personnel Information System (IPPIS) platform by the end of October 2019. All agencies must obtain the necessary approvals before embarking on any fresh recruitment and any contraventions of these directives shall attract severe sanctions,” he said.
He said total overhead cost for the year 2020 stood at over N400 billion, with additional provisions for the newly created ministries.
“Overhead costs are projected at N426.6 billion in 2020. Additional provisions were made only for the newly created Ministries. I am confident that the benefits of these new Ministries as it relates to efficient and effective service delivery to our citizens significantly outweighs their budgeted costs.
“That said, the respective Heads of MDAs must ensure strict adherence to government regulations regarding expenditure control measures. The proliferation of Zonal, State and Liaison Offices by Federal Ministries, Departments and Agencies (‘MDAs’), with attendant avoidable increase in public expenditure, will no longer be tolerated,” President Buhari explained.
The Nigerian leader said the 2020 budget tagged “Budget of Sustainable Growth and Job Creation,” has a proposed non-debt recurrent expenditure of N3.6 trillion, covering personnel and pension costs.
“The non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs, an increase of N620.28 billion over 2019. This increase reflects the new minimum wage as well as our proposals to improve remuneration and welfare of our Police and Armed Forces. You will all agree that Good Governance, Inclusive Growth and Collective Prosperity can only be sustained in an environment of peace and security.
“Our fiscal reforms shall introduce new performance management frameworks to regulate the cost to revenue ratios for Government Owned Enterprises, which shall come under significant scrutiny. We will reward exceptional revenue and cost management performance, while severe consequences will attend failures to achieve agreed revenue targets,” he said.