PUBLIC FINANCIAL MANAGEMENT REFORMS

IMPLEMENTATION IN NIGERIA

LECTURE DELIVERED
BY
CLETUS D. NNAH
DIRECTOR, FINANCE AND ACCOUNTS
DEPARTMENT
ENERGY COMMISSION OF NIGERIA, ABUJA
 OUTLINE
BACKGROUND
TREASURY SINGLE ACCOUNT (TSA)
PUBLIC FINANCIAL MANAGEMENT
REFORMS (PFM) INTEGRATED PAYROLL AND
PERSONNEL INFORMATION SYSTEM
ECONOMIC REFORM AND
(IPPIS)
GOVERNMENT PROJCT (ERGP)
INTERNATIONAL PUBLJC SECTOR
GOVERNMENT INTEGRATED
ACCOUNTING STANDARDS (IPSAS)
FINANCIAL MANAGEMENT
INFORMATION SYSTEM (GIFMIS) CONCLUSION

2
 PRESENTATION OBJECTIVES
To sensitize participants on various FGN
reforms initiatives aimed at improving
the Public Financial Management (PFM).
To explain how the PFM reforms helps
stakeholder execute their functions
To share information about the current
status, challenges and prospects of PFM
implementation in Nigeria 3
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Public Financial Management

OVERVIEW
 DEVELOPMENT CHALLENGES
A. Reason for Under-Development
A. Development Challenges  High Cost of Governance
 High poverty  High Salaries and Wages
 Bloated Public Service
 High Unemployment  Large Bureaucracy
 High rate of Insecurity  Bloated National Assembly
 Lack of Accountability and Transparency in Governances
 High Cost of Governance  Fiscal indiscipline(recklessness)
 Endemic Corruption  Inadequate laws guiding Public Expenditure Management
 Weak Judicial System
 High Cost of Living  Corruption
 Poor Standard of Living  Greed
 Looting of the Treasury
 High Crime Rate  Misappropriation
 Maladministration
 Extreme Inequalities  Arbitrary and Unscientific increases in Salaries, Allowance etc of Public
 Decay Infrastructure Office Holders 5
 BACKGROUND
The FGN has taken bold steps to tackle the
deep-seated risks to macroeconomics and
fiscal stability and to address key sources of
economic inefficiency. Consequently,
commenced the implementation of deliberate
policies, programmes and projects aimed at
strengthening the economy, weak governance
and corruption through reform initiatives.
6
PUBLIC FINANCIAL MANAGEMENT{PFM}

DEFINITION

Public Financial Management is the system by

which Financial Resources are planned,
directed and controlled in a transparent and
accountable manner for the purpose of
effective and efficient delivery of service to the
citizenry.
 OBJECTIVES OF PFM

 To Promote Accountability
 To Promote Transparency
 To Instill Fiscal Discipline in the financial business
 To Ensure Good Governance
 To Ensure Effective Allocation of available
Resources
 To Promote effective delivery of Good and
Services
 SOME NOTABLE CHALLENGES IN THE
IMPLEMENTATION PFM IN NIGERIA
 Inadequate strong institution
 inadequate political will on the part of leadership
 Non-compliance to due process
 Ineffective Non-Governmental Organizations
 Inadequate Ownership of reforms
 Poorly motivated workforce
 Weak/inadequate legislation
 Non existence public performance reporting
 High cost of governance
 Wide spread corruption, etc.
IMPEDIMENTS IN THE PFM SYSTEM

Personnel Record and Payroll:

 Lack of reliable and comprehensive database
for the Public Service,
Inability to forecast manpower needs and
requirements,
Growing wage-bill of government with
increased unemployment,
Lack of synchronization of civil servants
records with pension administration, etc.
10
IMPEDIMENTS IN THE PFM SYSTEM (CON’D)

Accounting System :
 No reliable accounting books to prepare financial
statements;
 Inconsistency in the treatment of similar transactions
from MDA to MDA and from time to time;
 No automation in accounting processes;
 Perennial delays in rendition of transcripts of accounts
and statutory reports;
 No legal basis for accounting basis;
 Incomplete disclosure of loan portfolio of Government
in the Government Financial Statements;
 Control entities cash flows are not consolidated; etc.
11
IMPEDIMENTS IN THE PFM SYSTEM: CONTD

Planning and Budget:

Unreliable data about the past
Excel templates being used to prepare multi-trillion
naira budgets (which always require budget repairs)
Budget classification different from accounting and
lacks transparency
No reliable system to support Performance-Based
Budgeting

12
IMPEDIMENTS IN THE PFM SYSTEM: CONTD

Cash Management:
 Fragmented banking arrangements for revenue and
payment transactions,
 More than 10,000 bank accounts in multiple banks;
 Idle cash balances held in MDAs’ accounts while
borrowing to fund budget.
 ₦70 billion lost in failed commercial banks,
 Delays in remittances of revenue into CRF;
 No reliable basis to prepare Warrants to MDAs;
 Delays in Budget Execution, and
 Perennial existence of unspent balances by the year end.
13
14
BACKGROUN
D
ECONOMIC REFORM AND GOVERNANCE
PROJECT (ERGP) was approved in
December 2004, in line with FGN
goal to strengthen governance,
accountability, reduce corruption
and deliver services more
effectively.
15
16
 BACKGROUND
BACKGROUND
(CONTD.)
THE NATIONAL STRATEGY FOR PUBLIC SERVICE REFORM {NSPSR}
was developed by the Bureau of Public
Service Reforms in collaboration with UK-
Department For International Development
(DFID) in 2008. The NSPSR framework was
derived from Vision 20:2020, NEEDS
Document and other Global Initiatives aimed
at improving the quality of Public
Administration and good governance in
Nigeria. 17
PHASES OF THE
NSPSR

18
PILLARS OF
NSPSR

19
 PILLAR THREE: PUBLIC
FINANCIAL MANAGEMENT

20
REFORMS UNDER
THE OAGF & BOF
INTERNAL
AUDIT E-PAYMENT
MODERNISATION

IPPIS FTA
OROZO

MTSS
21
OVERALL DIRECTION
OF THE REFORMS

22
SPONSORS OF THE PFM
REFORMS IN NIGERIA

23
BENEFITS TO
CITIZENS

24
BENEFITS TO
BUSINESSES:

25
BENEFITS TO
GOVERNMENT

26
 EXPECTED LEVEL OF
BENEFITS WILL DEPEND ON:

27
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GIFMIS--OVERVIEW
 FINANCIAL MANAGEMENT
INFORMATION SYSTEM
(GIFMIS):
GIFMIS is a sub set of
ERGP which support
the public resource
management through
modernizing fiscal
process using better
methods, techniques
and information
technology in the use
of government
resources.
29
OBJECTIVES OF GIFMIS

30
GIFMIS – GOVERNANCE STRUCTURE

31
 • GIFMIS IMPLEMENTATION STRATEGY
 GIFMIS will continue to operate on
improving the cash management of
the nation through the use of TSA.
 All MDAs not classified as
Government Business
Enterprises(GBEs) shall be brought
on TSA.
 Revenue of all MDAs under TSA
shall be paid 100% into the TSA real
time

Integration Sub-systems
 COMPONENTS OF
GIFMIS
 Planning Process
REFORM
Procurement
 Budget Execution Assets Management
 Payment Process Auditing Process
 Revenue Accounting
Human Resources
 Cash Management
Management
 Reconciliation System
Communication/
 Treasury Single
Account Networks

33
SYSTEM CONTROLS

34
 BUDGET PREPARATION

Budgeting
Performance Based
Budgeting
Reports
 BUDGET EXECUTION

Appropriation:
Warrant
Authority to Incur Expenditure (AIE)
Provisional Budget
BUDGET EXECUTION (CONTD.)

Cash Management:
Payment Batches
Receipt Register
Payment Register
Bank Statements
Cash Plans
BUDGET EXECUTION (CONTD.)

REPORTS: Cash Backing

Budget Warrant
by COA Information
Segments Bank Statement
Reports on Warrants Batch
Warrant Lines Payment Report
Budget Execution AIE Lines
Payment Requests Cash Balance
Payment Batch Report
Payment Batch
Reconciliation
Report
Summary Reconciliation
Cash Plan Summary Exception
General Ledger
Financial Statements
 MASTER DATA MANAGEMENT
Chart of Account
(COA)
Finance Master
Plan
Procurement
Master Plan
Administration
41
 INFRASTRUCTURE
Computers
REQUIRED
Internet Connection
Uninterrupted Power
Supply
 Human Resources
Systems
Administrator
Operators, Verifiers
and Approving
Officers

42
 DATA REQUIRED
FOR
Beneficiary's Name
GIFMIS
Bank Name
Bank Branch Address
Sort Code
Bank Account Number
Amount (in figures and words)
Value Date
MDA contractors must indicate their TIN and
account details on the invoice submitted for
payment under their corporate seal.
43
 APPLICATION
OF GIFMIS
Taxes and levies
remittances
Vehicle
Electronic billing licensing
Salaries and Wages Scheduled
Purchase of goods payments
Contract payments Pension Payment
Inter & intra bank Debt Servicing
transfers 44
BENEFITS OF
GIFMIS
Eliminated cash Achieved economic
transaction growth and
development through
Eliminated delays in accountability
payment Achieved economy and
Minimized efficiency in
interaction with government financial
government officials transactions
and contractors Enhanced real time
reporting and has
Minimized improved quality of
corruption reports.
45
BENEFITS OF GIFMIS
(CONTD.)
It has abolished the It has reduced
use of cheques incidence of
It has reduced theft, fraud and
incidence of money robbery
laundering It facilitates easy
preparation of
It assisted tax financial
Authorities to statements
access and assess 46
 BENEFITS OF
GIFMIS (CONTD.)
It has reduced the amount of paper
work
It made audit trail easier
It increases the efficiency and
timeliness of government operations
Balances and movements in the bank
accounts can be viewed online, real-
time 47
 PATH OF GIFMIS
IMPLEMENTATION

48
 GIFMIS
CHALLENGES
The absence of a legal framework is a major
challenge since some of the features are not
recognised in law
Since the payments are made directly, it is
sometimes difficult to collect receipts from the
beneficiaries
Retrieval of funds erroneously credited to a wrong
account is often difficult
Sometimes payments are delayed by the banks
due to “queue management” which arises from the
banks internal problems
49
 CHALLENGES
(CONTD.)
System breakdown,
.
switching
challenges and network failures
Facilities for the checking of the
biometric security system are not in
place in some of the banks
The initial cost outlay may be very
substantial for some institutions
50
 No more Manual Warrant
 No more delay for Cash-backing
 cash is available as soon as
Warrant or AIE is issued
 No more Commercial Bank
Accounts for MDA
 Real-time reports on credits,
debits and bank balances
 Easy tracking of budget
implementation 51
 COUNTRIES THAT
IMPLEMENTED GIFMIS
SOME COUNTRIES OF THE
SOME COUNTRIES OF THE
SOME COUNTRIES IN AFRICA WORLD

Sierra Leone United States of America

Tanzania United Kingdom
South Africa France
India
Uganda
Iran
The Gambia China
Mauritius Ukraine
Kenya Indonesia
Egypt Cambodia
Russian Federation
52
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TSA--OVERVIEW
THE TSA
CONCEPT

54
TSA CONCEPT
(CONTD.)

55
TSA CONCEPTS (CONTD.)

The Consolidation of cash resources should

be comprehensive and encompass both
budgetary and extra-budgetary.
The primary objective of TSA is to ensure
effective aggregate control over cash
balances.
Establishing a TSA usually require a legal
basis to ensure its robustness and stability
OBJECTIVE
OF TSA
The cardinal objective
of TSA is to facilitate
implementation of
FGN Cash
Management Policy

57
. OBJECTIVE OF A TSA
It avoids borrowing and paying additional
interest charges to finance the expenditures
of some agencies while other agencies keep
idle balances in their bank accounts
Effective aggregate control of cash is also a
key element in monetary and budget
management
Monitoring the remittance of government
revenue by the collecting banks
Effective reconciliation between banking
and accounting data
OTHER OBJECTIVES
TSA STRUCTURE
CENTRALIZED PAYMENT BY THE TREASURY
FROM THE TSA
TSA IMPLEMENTATION
TREND (CONTD.)

62
 TSA
COVERAGE

63
COVERAGE OPTIONS
INTEGRATING DONOR FUNDS IN TSA
Converting donors’ funds into local
currency on transfer to the TSA main
accounts(Best Option)
Opening separate foreign currency sub-
accounts within the TSA;
Maintaining foreign currency accounts
outside the TSA, but bringing the flows
within the accounting system.
 PRE-TSA
CHALLENGES
Inability of government to determine cash position
at any point in time
Unlimited Commercial bank accounts maintained
by MDA
Growing domestic debt and borrowing not aligned
to need
Idle Cash balances/Unspent balances in MDA
accounts
Excessive Use of Ways and Means in financing
budget expenditure 65
 PRE-TSA
CHALLENGES(CON
TD.)
Inability to undertake effective cash planning and
management as required by the Fiscal
Responsibility Act
No reliable basis to prepare Warrants to MDA,
delays in Budget Execution and perennial
existence of unspent balances by the year end.
Warrants/AIEs releases were not based on cash
plan
Over ₦70 billion lost in failed Commercial Banks
Inability to track Government expenditure 66
 PRE-TSA
BENEFITS
CHALLENGES OF TSA (CON’D)
(CONTD.)
Average Monthly Cash
Balance with MDAS* ₦235bn

Average Monthly
₦62bn
Domestic borrowing
Average Monthly Ways
and Means Financing
₦102bn
Average monthly
₦235bn
investible Funds 67
BENEFITS OF TSA
Allows complete and timely information on
government cash resources
Improve operational control during budget
execution
Enables efficient cash management
Reduces bank fees and transaction costs
Facilitates efficient payment mechanisms
Improves bank reconciliation and quality of
fiscal data
Lower liquidity reserve needs
 BENEFITS OF
TSA (CON’D)
Cash plan is a precondition for the issuance
of Warrants and AIEs
Multiple commercial bank accounts
maintained and operated by MDA are being
closed gradually
With only 209 MDA on TSA, average monthly
Ways and Means (Overdraft) has drastically fallen
from N102billion in 2011 to N86.2billion credit as
at May 30th, 2013 69
BENEFITS OF
TSA (CONTD.)

70
TSA-MDA ROLL-OUT PLANS
TSA ROLL-OUT PLANS-% Budget
TSA AND THE ROLE OF DMBs
DMB will still collect the following taxes on behalf
of Federal Inland Revenue Service (FIRS)
Petroleum Profit Tax (PPT)
 Company Income Tax (CIT)
Capital Gains Tax (CGT)
Personal Income Tax (PIT)
Value Added Tax (VAT)
 Education Tax (EDT)
Stamp Duties (SD)
Withholding Tax (WHT)
National Information Technology Development Levy (NITDL)
TSA AND THE ROLE OF DMB (CONTD.)
DMB will still collect the following Duties and
Levies on behalf of Nigeria Customs Service (NCS)
Import Duty
Excise Duty
 Fees
 Custom Levies
Value Added Tax (VAT)
TSA AND THE ROLE OF DMB (CONTD.)
DMB will still collect the following Revenues common to MDA
Use of Government Vehicle
Rent and Water (Senior & Junior Staff)
Furniture Loan Repayment
Motor Vehicle Advances Repayment
Refurbishing Loan Repayment
Registration of Contract Fees
Deposit on Tenders
Proceeds from Sale of Government Vehicle
Sales of Unserviceable items
Sundries (Miscellaneous)
Use of Government Halls & Sales
Interest from Bank Deposits and Investment (Interest Charges)
Investment General
Rent on Government Quarters, Office & Stores
Refund of Overpayment.
OTHER ROLE OF THE DEPOSIT MONEY BANKS

• Independent Revenue collections

• Payment of bills by customers
• Maintaining public servants bank
accounts
• Maintaining accounts in respect of
government contractors
• Provision of loans to MDA and civil
servant 76
 TSA MODEL IN SOME COUNTRIES
Country Description Covera Degree of Role of Avail
ge Centralization Commerc abili
ial Banks ty of
IFMI
S
United All central Nation Fully Yes, Yes
Kingdo government cash al centralized signific
m balances are govern architecture
aggregated into ment
ant
TSA maintained involve
at the central ment
bank. There is no
extra-budgetary
funds that are
outside the
system.
 TSA COUNTRIES (CONTD.)
Countr Description Coverag Degree of Role of Availa
y e Centralizatio Commercia bility
n l Banks of
IFMIS
France France has a well- National Fully centralized No IFMIS,
developed TSA at and architecture with includin
involveme
the Central Bank regional/lo regional sub- g an
(Banque de cal accounts of the nt interfac
France) The TSA governmen TSA e with
includes the ts and the
balances of local quasi- central
authorities, governmen bank for
municipalities, t bodies TSA
and quasi- operatio
government Social n
bodies as well as Security
of central Funds is
government, managed
revenue and by the
spending treasury,
departments but held in
 TSA COUNTRIES (CONTD.)
Australi Department of National A mixed The Central Yes
a Finance and Governme architecture (with Bank is the
Administration (DFA) nt elements of both manager of the
is responsible for centralized and TSA, but
banking and decentralized departmental
payment model of TSA) payments are
arrangements within executed
government. The through the
DFA holds the main Commercial
government bank Banking System
account at the
Central Bank
(Reserve Bank of
Australia)
United The U. S. Treasury Federal Decentralized Some Yes
maintains a Governme architectures with
States involvement,
consolidated funds nt FRBs acting as the
pool, in a single main government with Central
account, for all funds banks for agencies bank being
of the federal who are given the manager
government. The responsibility for
of TSA
federal Reserve accounting control
 TSA COUNTRIES (CONTD.)
Sweden There are around Central/ Decentralized Commerci Yes
270 central National architecture,
al banks
government Government Central
authorities in Government provide
Sweden. They agencies sign transactio
make or receive a agreements with n banking
large number of Banks and pay for
service.
payments. the banking
Authority services used by Central
payments them Governme
(including the nt
Swedish Social
Insurance
agencies
Administration) have
are collected in a transactio
Central Account n
accounts
at one or
more
commerci
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IPPIS---OVERVIEW
CONCEPT OF
IPPIS

82
 OBJECTIVES
OFdataIPPIS
To centralize base of civil servants
To reduce ghost worker syndrome
To ensure integrity of employees data
To minimize wastage of public funds
To ascertain actual personnel emolument of FGN’s staff

To facilitate easy storage, updating and retrieval of personnel

records for administrative and pension purposes 83
 BENEFITS OF
IPPIS
• Over 150,000 civil servants are on the IPPIS
platform
• Had saved FGN of over ₦100billion from April
2007
• At the beginning of 2013, additional 35 MDA have
been successfully brought into the IPPIS platform
• An additional 66 Universities, Teaching Hospitals
and Federal Medical Centres, the Nigerian Police
Force and the Paramilitary Agencies are in the
process 84
 BENEFITS OF
IPPIS
 Biometric (CONTD.)
data capture of personnel under IPPIS
 Storage of records in the centralised personnel
database
 Timely processing of staff emoluments on a
monthly
 Prompt deduction and remittance to pension
funds, cooperative societies and other unions
dues
 Easy Retrieval of personnel information
 Easy payment of civil servants entitlements
 Monitoring of unutilized funds derived from
unpaid staff salaries 85
 LEGAL FRAMEWORKS
Financial Authorities for the PFM Reforms
The 1999 Constitution (as amended)
Fiscal Responsibilities Act 2007
Federal Inland Revenue Service Act 2007
Audit Ordinance Act of 1956 (as amended)
Finance (Control and Management ) Act of 1958 (as amended)
Annual Appropriation Acts
Allocation of Revenue Act of 1981 (as amended)
Public Service Rule
Treasury Circulars
Financial Regulation
Public Procurement Act 86
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87|
IPSAS---OVERVIEW
 INTERNATIONAL PUBLIC SECTOR
ACCOUNTING STANDARDS { IPSAS}

IPSA
S
OBJECTIVES OF IPSAS
 SCOPE IPSAS
 This is applicable to general Purpose Financial
Statement (GPFS) prepared and presented
under the cash basis or accrual basis of
accounting in accordance with IPSAS for public
sector entities other than Government
Business Enterprises (GBEs)
 IPSAS are tailored for the sector entities (e.g.
Government, Non-Governmental Organization
and International Organizations)
IPSA
S
 IPSAS BOARD MEMBERS
S/N COUNTRY/COUNTINENT BOARD
MEMBERS
1
North America 3
2
South America 1
3
Europe 6
4
Africa 2
5
Asia 4
6
Oceania/Australia 2
TOTAL 18
IPSA
S
 IPSAS DEVELOPMENT PROCESS

Conceptual Exposure Final

Paper Draft Standard

IPSA
S
 IPSAS/IFRS
 IPSAS are drawn primarily based on International
Financial Reporting Standard (IFRS) issued by the
International Accounting Standards Board (IASB)
to take into account public sector specific
requirements.
 Public and Private Companies carrying out
commercial activities e.g. BOI, BOA, NEXIM, CBN,
CAC including Government Business Enterprises
(GBEs) do apply IFRS while Government, Public
Institution and International Organizations
without Commercial purposes adopts IPSAS.
IPSA
S
CASH & ACCRUAL BASIS OF ACCOUNTING

 Cash Basis of Accounting under which

income or expenditure is recognized only
when Cash is actually received or paid

 Accrual Basis of Accounting is a basis of

accounting under which transactions and
other events are recognized when they
actually occurred
IPSA
S
COMPONENT OF IPSAS CASH BASIS

 Statement of cash Receipts and Payments

(Cash Flow Statements)
 Comparison of Budget and Actual Amounts
either as a separate additional Financial
Statement or as Budget Column in the
Statement of Cash receipts and Payments
 Accounting Policies
 Notes to the Financial Statements
IPSA
S
COMPONENTS IPSAS ACCRUAL BASIS

IPSA
S
 ACCRUAL-BASED IPSAS STANDARDS
1 Presentation of Financial Statements 17 Property, Plant and Equipment

2 Cash Flow Statements 18 Segment Reporting

Accounting Policies, Changes in Accounting

3 Estimates and Errors
19 Provisions, Contingent Liabilities and Contingent Assets

4 The Effect of Changes in FX-rates 20 Related party disclosures

5 Borrowing Costs 21 Impairment of Non-Cash-Generating Assets

Disclosures of Financial Information about the General

6 Consolidated and Separate Financial Statements 22
Government Sector

7 Investments in Associates 23 Revenue for Non-Exchange Transactions

Presentation of Budget Information in the Financial

8 Interests in Joint Ventures 24
Statements

9 Revenue from Exchange Transactions 25 Employee Benefits

10 Financial Reporting in Hyperinflationary Economies 26 Impairment of Cash-Generating Assets

11 Construction Contracts 27 Agriculture

12 Inventories 28 Financial Instruments: Presentation

13 Leases 29 Financial Instruments: Recognition and Measurement

14 Events after the Reporting Date 30 Financial Instruments: Disclosures

Financial Instruments: Disclosure and Presentation

15 * 31 Intangible Assets
PwC 97
 IPSAS and IFRS, IPSAS and GFS
guidelines
 IPSAS are inspired by IFRS and adapted to take
into account public sector specificities (specific
terminology, specific concepts, specific guidance
or standards).
 IFAC and IPSASB MoU dated November 2011.
 GBEs report under IFRS
 GFS (Government Finance Statistics) guidelines
used to analyze and evaluate fiscal policy options
and outcomes and to make national and
international comparisons.
 Financial statements prepared in accordance
with statistical bases of reporting are primarily
accrual-based.
 Benefits to further align the two frameworks.
 IPSASB CP on ‘IPSAS and GFS reporting
PwC 98
guidelines’ (comment period closed end March
 BASIS OF FINANCIAL
REPORTING: CASH VERSUS
ACCRUALS
Cash-basis Accrual-
basis
udgets and cash accounting- ccrual accounting measures a public entity’s
financial performance and changes in its
based financial statements financial position.
lay out a public entity’s
spending and how it is istinguishes expenditure which provides
financed. economic benefits or service potential in the
short-term (i.e. for current consumption)
from that which will benefit the entity well
Measures financial results for into the future (i.e. capital expenditure).
a period as the difference
between cash received and eflects an entity’s obligations (including
cash paid. long-term obligations such pension and
financial liabilities) in the financial
statements.

PwC 99
OBJECTIVES OF IPSAS FINANCIAL
STATEMENTS
Provide
information
which is useful
for

Accountabilit Decision-
y making
PwC 100
BENEFITS OF IPSAS
Presentation Standard
of assets and presentation,
Improve
liabilities, notes to the
transparency,
risk financial
new financial
assessment statements,
indicators
(impairment, cash flows,…
cut off, …)

Improved
Improved Support to result
comparability of
management and based management financial statements
stewardship of and improvement of over time and
resources governance between public
PwC sector entities 101
 BENEFITS OF IPSAS

Enhanced information
to the external world

Increased accountability
Increased transparency

Enhanced
management
information

Enhanced New
consistency informatio
n

PwC 102
IMPLEMENTATION TREND

Phase 1 Phase 2 Phase 3

Diagnostic Conversion Embedding

•Project set-up
•Component evaluation
and data collection
•Initial conversion
Current
accounti IPSA
Project management, communication, knowledge S
ng transfer
practices

Assess impact and Establish IPSAS policies Embed IPSAS as the

determine strategy and prepare initial IPSAS primary reporting
financial statements language

PwC 103
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104
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Transformation Agenda (TA)

OVERVIEW
TRANSFORMATION AGENDA IS DESIGNED TO
ADDRESS

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2
1

Insufficient Jobs Dependenc

y on Oil High Food 3
and Poverty Exports Importation/
Food
Insecurity

9
Rising
Domestic 4

Printed 12/7/2012 2:04 PM India Standard Time

Debt
Housing
Deficit

High Recurrent
Expenditure
Infrastructure
Falling High Inflation decay
8 Reserves
5
7 6

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105
 TA


OBJECTIVES To re-invent the wheel of
progress
Sound Macroeconomic  Restore & improve on decayed
Policies infrastructure
Coordinate  Optimised the key sources of
Fiscal &
economic growth and
Monetary Policies
development
Job Creation  Stem the tide of
Public Expenditure Unemployment
 Achieve accepted standard of
Management
living
Good Governance  Foster sustainable Social and
Provision of Economic Development
Infrastructure  Ensure transparency and
To accountability in the conduct of
reconstruct the
government financial business
nation economy to a 106
 TA

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3Cs lack of
Continuity
Consistency

Printed 12/7/2012 2:04 PM India Standard Time

Commitment to agreed
policies, programmes and
projects and absence of long-
term planning
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108
|
TA
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109
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Other relevant reforms
 Sovereign Wealth Fund

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4
4
The NSIA to
3 commence core
2 3
2 Management team investing activities
1 has developed a
1 The Board of the from Q2 2013 and
US$1 billion comprehensive currently evaluating

Printed 12/7/2012 2:04 PM India Standard Time

Nigeria Sovereign
earmarked for Investment strategy document potential
investment in the 3 which was
Authority was infrastructure
arms i.e. Stability Inaugurated on 9th presented at its
investment
Fund, October, 2012 inaugural board
opportunities
Infrastructure meeting on 13th
Fund and Future November 2012
Generation Fund

1 Footnote

SOURCE: Nigeria Sovereign Wealth Investment Authority; Federal Ministry of Finance |

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Community Services Scheme

•370,000 youth to be employed annually.

•178,000 Youth already employed.

Printed 12/7/2012 2:04 PM India Standard Time

Graduate Internship Scheme

•Providing 50,000 graduates with internship in established privates sector

organizations

•1,306 graduates placed so far

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111
 Subsidy Reinvestment Program (SURE-P)
Subsidy Savings 2012 2013 (Jan – May)

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Federal Government ₦180 Billion ₦75 Billion

States Government ₦154.6 Billion ₦64.4 Billion

Local Government Councils ₦76.4 Billion ₦31.8 billion

Breakdown of FGN SURE-P Budget

S/N Classification/Projects 2012 2013

(Annual Budget, (Annual Budget
N’ Bns) N’ Bns)
A SOCIAL SAFETY NETS (e.g. Maternal & Child 38.44 40.83

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Health, Mass Transit, Community Services,
Graduate Internship Scheme)
B NIGER DELTA Augmentation for East-West 21.70 42.27
Road (Sections 1-4)
C WORKS (ROADS & BRIDGES) (e.g. Abuja- 85.50 111.50
Lokoja Road, Kano-Maiduguri, Oweto Bridge)
D TRANSPORT (RAIL) (e.g. Lagos-Kano, Port- 33.36 77.42
Harcourt - Maiduguri)
E OTHER EXPENSES (e.g. SURE-P Board, M&E) 1 1.5
180.00 273.52

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12
 Youth Enterprise with Innovation in Nigeria
(YouWiN!) Program

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YouWiN! Results
•Trained 12,000 aspiring or existing young entrepreneurs.
• Presently funding 1,200 entrepreneurs identified in the first round of the three round
competition
• Identified 1,200 women in May 2013 across the six geopolitical zones to receive funding
in the second round
• As at March 2013, a total of 12,108 jobs have been created across the country in the
early stages of the first round. At least 80,000 jobs expected by the end of the third round
in 2015.

Printed 12/7/2012 2:04 PM India Standard Time

Breakdown of Job Creation by Geo-Political Zone
and Sector (as at March 2013)
REGION NO. OF JOBS SECTOR NO. OF JOBS
North-Central 2,117 Agriculture 3,499
North-East 2,367 ICT & Media 1,863
North-West 1,703 Manufacturing 3,160
South-East 1,579 Retail 543
South-South 1,765 Others 3,043
South-West 2,577 Total 12,108

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113
CONCLUSION
 THANK YOU
FOR YOUR
ATTENTION!!!

116
ANY QUESTION

117