Lagos State Government of Nigeria

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Lagos State Government of Nigeria
IFMIS Implementation - Lagos State Experience
Presented by Adewunmi Adekoya Director
Financial Information Systems Lagos State
Treasury Office Nigeria.
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NIGERIA

• Location - West Africa
• Administrative Structure - 36 (semi-autonomous)
  States and Federal Capital Territory Abuja.
• Population - 134 Million
• Total Area - 923770 sq km
• Currency - Naira
• Natural Resources - Petroleum Tin Columbite
  Iron Ore Coal Limestone Lead Zinc Natural
  Gas.

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LAGOS STATE The Economic Nerve-Centre of Nigeria

• Location - South West Nigeria
• Administrative Structure - Five (5) Divisions
  with 53 Local Governments.
• Ministerial Bodies - 49 Ministries and Agencies.
• Population - 14 Million
• State Capital - Ikeja.
• Budget Size - N 70 Billion (2004)
• approx. USD 53
  Million
• Workforce - 47000 Employees

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VISION OF THE STATE The vision of His
Excellency the Executive Governor of Lagos State
of Nigeria is to take advantages of advancement
in Information Technology to promote good
governance with a view to enhancing the efficient
management of Human Materials and Financial
resources of Lagos State Government of Nigeria.
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OUR MISSION STATEMENT The Lagos State
Governments mission is to align Information
Technology Strategies in line with the Strategies
of the Government by deploying the appropriate
technology to harness its strategic initiatives
and resources towards improved revenue generation
and enhanced operational efficiency in the State.
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INTRODUCTION

• With the return of democratic structures in
  Nigeria in May 1999 the newly elected Governor
  of Lagos State set up 13 different committees to
  look at ways of moving the state forward.
• One of the committees was the ICT Committee
  which amongst her recommendations proposed the
  implementation of an Enterprise Resource Planning
  Solution.
• In the December 2000 the State Government signed
  the contract for the implementation of the
  world-renowned Oracle Enterprise Resource
  Planning (ERP) software and Database solution in
  support of her e-Governance with Transnational
  Computer Technology of America. Messrs.
  Technology Derivatives Ltd were equally appointed
  as Project Managers for the States Global
  Computerisation Programme (GCP) LASGs (Lagos
  State Government) IFMIS.

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• SCOPE OF THE GLOBAL COMPUTERISATION PROGRAMME
• The Project was divided into two major parts
• The Backbone Projects and
• High Impact Projects.

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• BACKBONE PROJECTS
• These include Oracle ERP Software and Database
  Engine Infrastructure/Network and Capacity
  Building.
• THE ORACLE ENTERPRISE RESOURCE PLANNING (ERP)
  SOFTWARE AND DATA BASE SOLUTION
• The Nine (9) modules of Oracle ERP implemented
  include
• (i)              General Ledger (vi) Human
  Resources
• (ii)             Accounts Receivable (vii) Payro
  ll
• (iii)            Accounts Payable (viii) Fixed
  Assets and
• (iv)            Cash Management (ix) Purchasing
• (v)             Public Sector Budgeting 
• INFRASTRUCTURE/NETWORKS
• Phase I of the project involves creating the
  States Secretariat Campus (Alausa) Network
  whereby ten (10) Ministries were linked and made
  accessible to the Oracle Data Base by radio and
  by fiber optics. Metropolitan Area Network for
  all Tax Stations and Ministries/Agencies at the
  Old Secretariat and Lagos Island would be
  connected to Alausa by Radio link.Computer
  hardware and peripherals were also provided to
  Ministries and Agencies.
• CAPACITY BUILDING
• This covers the training and retraining of all
  cadres of officers in the State Civil services in
  Basic Computer Literacy and Oracle Applications
  under the User Learning and Adoption Strategy of
  the Global Computerisation Programme.

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HIGH IMPACT PROJECTS For Transparency
Accountability Predictability and Participatory
Democracy to be effective high impact projects
that would touch the lives of citizens in Lagos
State and Nigeria at large must be in place. The
High Impact Projects include - 35 Resource
Centers with PCs and other peripherals were
established at various Ministries/Agencies.
(Completed) - Electronic Banking.
(Completed) - Document Image Management - Lagos
State Official Website (Lagos .Net)
(Completed) - Digital Village (At least 6 will
be established) (On-going) - Fixed Assets
Authentication. (On-going) - Geographic and Land
Information - Information Technology Education
in Secondary school (On-going) - LASG Education
Management Systems (On-going) - Medical and
Hospital Database (On-going) - MOT
Administration - Vehicular and Property Security
- Electronic Tax Clearance Certificate.
(Completed) - Statewide Identification. - Cheque
writing solution.
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• GCP Implementing Agents
• Project Sponsor (The State Governor)
• Project Steering Committee (Consisting of seven
  Honourable Commissioners headed by the Finance
  Commissioner)
• Project Management Team (Consisting of LASG
  Implementing Consultants and Consulting Project
  Managers. Members are Directors in their
  respective offices)
• Business Managers (Civil servants with good
  understanding of LASG business process)
• Project Champions (Civil servants who are
  Computer Science Graduates)
• Each module consists of a minimum of two Business
  Managersone Auditor one Project Champion and
  one consultant each from the implementing firm
  and project managers.

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• EXPECTED BENEFITS OF THE PROJECT
• Improved Service delivery to citizens through the
  provision of electronic governance facilities.
  For instance an activity that could have taken
  one (1) week to accomplish through manual process
  would now take one (1) day.
•  2. To reduce the cost of running government
  through the introduction of Electronic Purchasing
  System Payroll and Fixed Assets Management
  Systems.
• 4. To increase the revenue base of the State
  Government through the efficient management of
  existing and new tax / revenue sources.
• To ensure the efficient and effective management
  of government finances through the use of the
  General Ledger Cash Management Public Sector
  Budgets Accounts Receivable Accounts Payable
  and Treasury Management modules of Oracle ERM
  System.

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PRE-IMPLEMENTATION STATUS

• LASG Accounts were five years in arrears.
• Hybrid Accounting Systems was in place.
• Chart of Accounts had two segments consisting of
  six characters.
• Data Processing was centralised.
• Data were batched and processed monthly.
• Very tedious procedures for preparing Final
  Accounts.
• Vote Book balances were unreliable.
• Over Expenditure could not be detected until
  years later.
• Dearth of qualified Accountants.
• Existence of Ghost Workers.

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The Journey So Far
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GL Team implementation efforts within the first
year.

• Cleared backlog of 5 years accounts using the
  Legacy System.
• Developed the New Chart of Account Structure
  consisting of 7 active segments and one inactive
  segment reserved for future use. The segments
  are Fund (2) Ministry (3) Directorate (5)
  Section (3) Location (5) Programme (4) and
  Account (5) thus making 27 code characters in
  all.
• Conversion of the Head and Subhead codes to Chart
  of Account codes
• Recoding of Year 2001 Vouchers and Preparation of
  2001 Final Accounts
• Transformation of Final Account Directorate into
  Financial Information Systems Directorate.
• Training of Account Officers in
  Ministries/Agencies.

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MAJOR ACHIEVEMENTS OF GCP

• Backlogs of five (5) years (1996 2000)
  Accounts were cleared. 2001 and 2002 Accounts
  prepared using Oracle GL
• Statutory audits up to date.
• Preparation of 2003 2004 and 2005 Budgets using
  Oracle (PSB).
• Elimination of fictitious names from Payroll.
• Reduction and detection of Payroll Fraud.
• Online connection of Tax Offices to the Oracle
  Application.
• Online connection of all Ministries/Agencies
• Training of End Users (This is ongoing).
• Training of Technical Staff
• Increased Revenue Generation from N 0.6
  billion per month to N 3 billion per month.

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• PHASE TWO OF GCP
• The second phase which started in January 2003
  and was to cover
• Networking of sixteen (16) Tax Stations and all
  other Ministries/Agencies not covered in Phase I.
  (Completed)
• Procurement of additional Computer Systems and
  peripherals- 2500PCs is anticipated. (About 1000
  PCs bought)
• Training of all classes of Users. (User Learning
  and Adoption ) (On-going)
• Implementation of additional two (2) Oracle
  Financial Modules (Treasury Management and
  Inventory/Order Management Modules). (Set up done
  awaiting deployment)

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Status of Oracle Modules Implemented
GL - Set-up completed fully operational. PSB -
Set-up substantially completed Personnel
Budgeting still outstanding. AR - Set-up
partially completed integration with Revenue
Collection Stand-alone module still
outstanding. AP - Set-up completed gradual
deployment being done. Five Ministries covered
so far. FA - Set-up completed yet to be taken
over. PO - Set-up partially completed
difficulties in streamlining procurement
procedures.
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CE - Set-up completed yet to be used because of
AR status. HR - Set-up partially completed
Recruitment Personnel Management etc yet to be
set up. Payroll - Set-up partially completed
used to process salaries since May 2003. Pension
is just about to be incorporated. Major issue
here is RETRO-PAY this is yet to be
finalised. Treasury - Set-up completed yet to be
deployed. Inventory - Set-up completed yet to be
deployed.
RETRO-PAY A tool Oracle uses in calculating
salary arrears.
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GCP CHALLENGES

• Overlapping ministerial responsibilities on human
  resources issues.
• Key Officers resigning while implementation was
  on.
• Multiple Treasury Accounts
• Project Managers had no functional knowledge of
  the application.

• Ownership of HR module now vested in the Office
  of the Head of Service.
• Proposal made to motivated remaining officers.
• - Yearly overseas training
• - Separate salary structure
• - State Awards
• Over 600 bank accounts no conclusion could be
  reached on how to achieve Single Treasury
  Account.

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• Inadequacy of the Financial Regulation.
• Power outages.
• Resistance to change
• - Managing change from batch processing to
  on-line processing.
• - Mentally Lazy Accounts Officers.
• Integrating Stand-Alone Systems.

• Review of the FR just completed.
• Provision of inverters that can provide back-up
  power supplies for 24 hours. Inverters require
  very minimal maintenance cost.
• FIS Directorate empowered to withhold monthly
  allocations of erring ministries.
• Attempts to integrate the e-Revenue Collection
  and Banking Solution has been delayed by
  frictions between the software vendor and the
  Implementing Consultants.
• This has delayed the finalisation of 2002
  Accounts until the resolution of above friction
  a few months ago.

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• Issues on cash basis of accounting.
• - completeness of information on fixed assets
  tracked.
• - full functionalities of AR module cannot be
  used.
• - inability to account for liabilities with the
  integrated systems.

• Fixed Assets module only used to track fixed
  assets.
• AR set up on accrual basis. Journal raised to NIL
  out Taxes Receivable as at the period/year end
  and journal reversed on 1st day of the following
  period/year.
• Stand alone solution would be required to manage
  debts (liabilities).

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Thank You!