Emma James Deko, the Director in Charge of Nigeria’s Integrated Personnel Payroll and Information System (IPPIS), clarified that their role is centered around processing salary payments rather than directly handling salary disbursements to workers.
Speaking during the House of Representatives Ad-hoc Committee’s inquiry into the Non-Remittance of Deductions from Worker’s Salaries for the National House Fund, Mr. Deko highlighted that the lack of adequate cash reserves for wage approvals often leads to non-remittance of deductions from employees’ salaries.
He also said that sometimes, IPPIS gets directives on only the net of the worker’s salaries, while the gross is kept in view because of a shortage of funds.
According to him, while IPPIS prepare the salaries for only federal workers, the government appointed four gateways that are responsible for the payment of the salaries to workers.
He gave the names of the gateways which he said are not situated within the IPPIS as Nigeria Interbank Payment System (NIPS), E-Transact, Remita and GIFMIS.
“So, like I said, IPPIS is not in charge of every employee of the federal government. IPPIS is only covering the executive arm. So, what I am trying to say is that IPPIS is not in charge of every employee of government. Having said that, let me go back to the requirements from IPPIS. The first one is evidence of remittance by all stakeholders and unremitted so far by the MDAs. The last part of it is the names of beneficiaries, I don’t think IPPIS can provide that because we don’t give it to beneficiaries. We cannot talk about evidence of remittance without deductions, because it is only when you deduct that you can remit. I must be sincere that, we have been trying to collate this information because it relates as far back as 2011 to date, based on the request of this Honourable committee. We have been on it, but we have one constraint and that constraint is the fact that after deductions, we remit and we are to pay salaries.
“There are instances where the cash backing may not cover the entire salary wage bill for a particular month., and in that instance, we are advised, we are directed to pay only the net, which means that, all deductions will be stepped down. I want to put it on record that I became the director of IPPIS in February 2023, and when I came in, I was told and I also observed from records that, from December 2022 to the point I was joining, they’ve already been paying net. And I also went through the records and discovered that there were instances like that in the past.
“It made us understand that, it is not all deductions that were remitted and it is not the fault of IPPIS. IPPIS is meant to deduct and remit. That brings me to the point that remittance and payment of salaries are not done in IPPIS, we only process them.
“There are four payment gateways engaged by the government to do the payment. Nigeria Interbank Payment System (NIPS), E-Transact, Remita and GIFMIS. These are not situated within IPPIS. We only process and they have the gateway to remit these monies.
“Why I am saying this is because the records of remittance are not with us. Since this instruction was sent to me by my boss, we have been trying to reach these people, and till this morning, we, even our staff were online till 2 a.m. and 3 a.m. to get these records so that we can answer this Honourable committee. We have been getting them in piecemeal.
“So, as I speak, we were not able to get everything coherently and, totally based on what this honourable committee wants, but we are on it. We are bound to respond to this Committee.
“We are committed to that. We are assuring you that, we will do everything within our power to respond to the request of this Committee. We’ll not hinder this committee’s work. No. We are accountants and accountants keep records.
“But, in this instance, we are not able to do certain things because we are constrained. Let me give you an instance, I am sure all of us are aware, that the money is in CBN.
“When these remittances are done, the CBN is supposed to get us statements. Sometimes when they give you statements, maybe a payment was made to a hundred people, they will give you a figure of let’s say ten billion naira and you ask for the breakdown to do reconciliation as an accountant, but as we speak, it is difficult, it is not only in IPPIS, it is in all the accounting cadre.
“We have been facing this problem, We cannot reconcile our accounts because they give you bulk figures, and with those figures, you cannot reconcile. I am sure my colleagues from the Auditor General are aware of this. So, this is our constraint. But, we were able to put down something for now, just to respond to you. We are on it, we will respond fully as the information trickles in.“
The committee Chairman Hon Hon Datchung Bagos summoned the Accountant General of the Federation to appear before the committee on Thursday to explain the delays in remitting deductions from workers’ salaries to the Federal Mortgage Bank.
He mentioned that the hearing aims to ensure the appropriate actions are taken to address the housing requirements of Nigerian workers.
Additionally, the Central Bank of Nigeria is scheduled to appear before the committee on Thursday.
