As the world continues to advance towards a more digital era, governments must embrace technology and adopt an integrated Public Financial Management (PFM) system. This system would serve as a tool for efficient, effective, and accountable financial management across all Ministries, Departments and Agencies.

A well-functioning Integrated Public financial management system would provide timely, reliable, and comprehensive reports that support the implementation of the government’s fiscal policies and fiscal rules and the formulating, controlling, monitoring, and executing of the budget.

The main objectives of PFM are prioritized to ensure fiscal solvency, appropriate allocation of resources, and efficient public delivery of goods and services. To achieve them, PFM procedures and systems must operate efficiently and integrally within an institutional framework that incorporates appropriate and steadfast rules, structures, processes, and capacities.

The potential of IFMIS to contribute to a better PFM is strong. By generating timely and accurate information, it can streamline processes carried out by the public sector according to financial management procedures. One of the key objectives of IFMIS is to produce financial data that is relevant to decision-making. Information, therefore, should be timely, relevant, and reliable to support adequate fiscal policy decision-making and contribute to the sustainable development of initiatives that will improve public management. A financial and accounting information system that operates efficiently enhances the government’s capacity to allocate and use public resources effectively and efficiently.

IFMIS is essential to provide fiscal transparency (i.e., clarity, reliability, frequency, punctuality, relevance, and openness) by gathering data to enable the publication of past, present, and future public finance positions. These elements are critical to the effectiveness of fiscal policy.

IFMIS is also essential for public management reform in its entirety due to the capacity it has to integrate the diverse administrative functions of the public sector and to link PFM to the management of human resources, assets, and the procurement of public goods and services, among others. IFMIS, therefore, has the capacity to support decision-making beyond matters of finance by contributing to the modernization of public administration so that governments can deliver public services more efficiently.

It is also important to note that for Nigeria to implement the IPFMS, there is a need to put in place Data/Digital Infrastructure.

A modern IT infrastructure is critical for boosting reliability, performance, and IT efficiency for today’s agencies while also enabling secure access to any app hosted on any cloud from any device.

Data infrastructure would provide the foundation for an organization to create, manage, use, and secure its data. One of its most critical roles is to ensure that the right data can get to the right users or systems at the right time to make effective data-driven decisions. To meet this goal, an organization must have a solid data infrastructure strategy in place to maintain data flows, protect data quality, minimize redundant data, and prevent crucial data from being isolated into silos.

Having the right data infrastructure strategy is critical for organizations seeking to undertake data-driven digital transformation.

Digital government infrastructures would provide generic functionalities that are used by large numbers of users. Typically, they have no central authority, are governed by networks and contain both emerging and purposefully designed parts.

There is a need to ensure that all back-end related government digital infrastructure is integrated as an Integrated Government Digital Infrastructure (IGDI); this action will help reduce the wastage of government funds and also increase the efficiency and effectiveness of government service delivery. Furthermore, a minimum standard for data infrastructure shall be made available to government and private organizations for reference.

In summary, the need for an integrated Public Financial Management system is critical in today’s digital age. Governments must invest in this system to enhance financial management, promote transparency and accountability, and improve service delivery. With an integrated PFM system in place, governments can efficiently manage their finances, promote fiscal sustainability, and achieve their development goals.