Lagos State Government of Nigeria
IFMIS Implementation Lagos State Experience
Presented by:
Adewunmi Adekoya
Director, Financial Information Systems
Lagos State Treasury Office, Nigeria.
NIGERIA
Location :- West Africa
Administrative Structure :- 36 (semiautonomous) States and Federal Capital
Territory, Abuja.
Population :- 134 Million
Total Area :- 923,770 sq km
Currency :- Naira
Natural Resources :- Petroleum, Tin,
Columbite, Iron Ore, Coal, Limestone, Lead,
Zinc, Natural Gas.
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 :- 47,000 Employees
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.
OUR MISSION STATEMENT
The Lagos State Government’s 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.
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 eGovernance with Transnational Computer Technology of America. Messrs.
Technology Derivatives Ltd were equally appointed as Project Managers
for the State’s Global Computerisation Programme (GCP), LASG’s (Lagos
State Government) IFMIS.
SCOPE OF THE GLOBAL
COMPUTERISATION PROGRAMME
The Project was divided into two major parts:
a. The Backbone Projects and
b. High Impact Projects.
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)
Payroll
(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 State’s 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.
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 PC’s 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.
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 Managers,one
Auditor, one Project Champion and one consultant each from the
implementing firm and project managers.
EXPECTED BENEFITS OF THE PROJECT
1.
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.
3.
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.
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.
The Journey So Far
ORACLE GENERAL LEDGER
Thursday, November 06, 2003
STAKEHOLDERS
FORUM
AUDIT & CONTROLS
CONSIDERATIONS
USER LEARNING
& ADOPTION
10
11
9
OPS MANUAL
FRAMEWORK
12
STRATEGY PRESENTATION
8
2-DAY WORKSHOP
13
FIS STRATEGY
7
OPERATIONS MANUAL
14
REFOCUSING FOR
LIVE RUN
ORACLE REPORTS &
6
OPERATIONALIZING FIS
PROCEDURE MANUAL
15
16
DATA CONVERSION
5
TESTING
4
GAP ANALYSIS
SOLUTION BUILD
3
2
AIM REQ. DEFINITION
1
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.
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.
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 1,000 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)
Status of Oracle Modules Implemented
GL PSB AR
AP
Set-up completed, fully operational.
Set-up substantially completed, Personnel
Budgeting still outstanding.
-
Set-up partially completed, integration with
Revenue Collection Stand-alone module still
outstanding.
-
Set-up completed, gradual deployment being
done. Five Ministries covered so far.
FA PO -
Set-up completed, yet to be taken over.
Set-up partially completed, difficulties in
streamlining procurement procedures.
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.
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.
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 eRevenue 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.
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).
Thank You!