Business
FG Slows Down Implementation Of IPPIS
The Federal Government has “slowed down’’ on the implementation of the Integrated Personnel and Payroll Information System (IPPIS) because of intermittent internet connectivity problems.
Accountant-General of the Federation, Mr. Jonah Otunla, made this known on Tuesday in Abuja during an oversight visit to his office, the Treasury House, by members of the House Committee on Finance.
The IPPIS is the platform upon which most federal civil servants are paid their salaries.
Otunla told the visiting lawmakers that lately, the system had encountered some difficulty resulting in late payment of salaries of workers in the public service.
He also attributed the delay in payment of salaries to late disbursements of allocations to the three tiers of government by the monthly Federal Accounts Allocation Committee (FAAC) meeting.
The accountant-general said that his office had sought the assistance of Galaxy Backbone, a Federal Government-owned ICT agency, to resolve the connectivity problem.
“We have been talking with the various agencies of government that are involved in this and we are sure that very soon we will overcome the connectivity problem.
“Because of this connectivity problem, we have decided to slow down the implementation, particularly of our IPPIS.
“The press is awash with barrages of complaints of late payment of salaries, particularly this month.
“The main factor accountable for this delay, apart from the awkward shifting of the FAAC meetings, we have some system problems that are not too strange to a system that is just taking off.’’
Reports say that two indigenous ICT firms are handling the project namely the Grand Central Ltd., which is the project manager while the solution vendor is Soft Alliance and Resources Ltd.
We gathered that since its first roll-out in October 2006 more than 100,000 public workers have been covered by IPPIS in 94 Ministries, Departments and Agencies (MDAs).
Expressing concern on the implementation of the IPPIS, Rep. Abdulmumin Jibrin, Chairman, House Committee on Finance, urged the accountant-general’s office to give it priority attention.
“Mr Accountant-General, we will expect that on the issue of IPPIS, you should give more emphasis to ensure that it is well managed and implemented,’’ he said.
He said the office should also ensure timely disbursement of capital expenditure within the confines of the provisions of the law.
The legislator also stressed the need for the AGF’s office to share constant information with the House committee.
“Sometimes you make the job of the parliament much easier for us when agencies give us updates of what they do on monthly or quarterly basis voluntarily.
“At the end of the day we might make an input in it or we might need such information to help us, help you and help the country.’’
Jibrin solicited the support of the accountant-general in training of legislators in the committee on financial matters.
He described financial matters as quite sensitive and highlighted that one of the biggest challenges facing the country was generating enough revenue to fund the deficit in this year’s budget.
“In that regard a lot of knowledge is required; a lot of knowhow is required; a lot of capacity-building is required.
“And so, what we are saying is this: in the spirit of the exchange and cooperation that exists between us and the fantastic relationship you have built in the last 11 months between this office and the Committee on Finance, whenever such capacity building comes up you can extend that also to the House.
“So that we can build our capacity at the same pace, so we can be on the same page on all the issues that we need to legislate on or work on for the betterment of this country.’’
Business
CBN Predicts 4.17% GDP Growth In 2025
The Central Bank of Nigeria (CBN) has announced that the 2025 economic indices indicate a positive outlook, with the nation’s GDP expected to accelerate to 4.17 per cent for faster economic growth.
Mr Muhammad Abdullahi, Deputy Governor, Economic Policy Directorate, CBN, revealed this on Tuesday during the 11th edition of the National Economic Outlook: Implications for Businesses in 2025.
The hybrid event, convened in Lagos, was organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Ltd.
Abdullahi said the nation’s 2025 economic projections remained optimistic with fiscal and monetary reforms already paying off, resulting in the GDP anticipated rise from 3.36 per cent recorded in 2024.
According to him, the growth is anchored on sustained implementation of government reforms, stable crude oil prices, and improvements in domestic oil production.
Abdullahi also stated that stability in the exchange rate would play a crucial role in maintaining the positive trajectory, with the inflation rate projected to decline due to the impact of economic reforms.
“Achieving the targeted inflation rate of 15 per cent in 2025 will require effective collaboration between monetary and fiscal authorities, alongside private sector participation for a stable economic environment,” he said.
The keynote speaker said that the apex bank would prioritise price stability and strengthen the financial sector to support SMEs and critical sectors for businesses to thrive.
Abdullahi noted that the nation’s evolving policy landscape presented both challenges and opportunities for businesses to thrive.
“The government is making deliberate strides to diversify its revenue streams and reduce dependence on the volatile oil sector.
“Through ongoing tax reforms aimed at broadening the tax base and improving collection efficiency, the government is working to establish a more sustainable fiscal environment.
“While these reforms may present challenges in the short term, they are essential for building a more resilient and diversified economy in the long run.
“As businesses, it is crucial to adapt to these changes, understanding that they will ultimately strengthen the economic foundation for future growth.
“As we move forward on this path of exploration and collaboration, we must remain focused on the vast opportunities before us.
“Nigeria’s abundant resources, coupled with the current administration’s commitment to economic reform, offer a fertile ground for innovation, investment, and sustainable growth,” Abdullahi said.
Similarly, Prof. Pius Olanrewaju, President/Chairman of the Council, Chartered Institute of Bankers of Nigeria (CIBN), said 2024 presented both challenges and opportunities.
He noted that the GDP signalled gradual recovery amidst global and domestic pressures.
“As we move into 2025, we are presented with both the opportunity and responsibility to critically examine the economic landscape.
“This forum will help us identify the risks, harness the opportunities, and strategize for the future,” Olarenwaju noted.
He commended the collaboration of experts at the annual event, which included Dr Kabir Katata, Director, Research, Policy and International Relations, Nigeria Deposit Insurance Corporation; and Dr Henrietta Onwuegbuzie of the Lagos Business School.
Others were Akinsola Akeredolu-Ale, CEO, Lagos Commodities and Fixtures Exchange; Mr Akeem Lawal, Managing Director Interswitch (Pure pay); and Chinwe Uzoho, Regional Managing Director, West and Central Africa Network International.
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