3.5.1 Measures to Cushion the Effects of Monetisation
As a result of monetisation, many Government vehicles would be sold off. Consequently, many drivers would invariably become redundant.
Government, however, is not insensitive to the effect such a development may likely have on the individuals concerned and the society at large. Hence, on the fate of excess drivers in the system, as a result of the new policy, the following steps were suggested:
• Those with relevant and adequate qualifications would be retained and redeployed appropriately
• Depending on the need, others will be deployed to drive staff buses under the Office of the Head of the Civil Service of the Federation.
• Drivers who will not be deployed will be rationalised, but would be assisted by the National Poverty Eradication Programme, or be allowed to buy one vehicle, out of the pool of excess vehicles to be boarded by the Ministries, Agencies and Extra-Ministerial Departments, subject to payment of the book value of the vehicles in accordance with extant regulations. This is meant to provide a means of self-employment to the disengaged drivers in line with government's determination to create more jobs
3.5.2 Gains and challenges of Monetisation
145
This policy is expected to have far reaching impact on Government planning, budgeting and discipline, and will positively impact on our national value system and ethics. The ramifications of the impact of monetisation as a public policy reform can be listed as follows:
• Monetisation Policy will enable Government to get the true picture of what it costs to maintain a Political Office Holder, or Public Servant, in office and therefore lead to more realistic budgeting and budget implementation; It is the most transparent avenue for the disbursement of remuneration and fringe benefits from employers to employees
• Monetisation will curb the excesses of public officers, as Government will no longer provide chauffeur-driven cars to its officials. For example, unlike in the past, Ministers are now to drive to office and back in their personal cars, with their personal drivers; also the use of pilot vehicles and sirens by political office holders will be discontinued
• The policy will correct the wrong public perception of Government utilities such as telephone, electricity and others, as limitless resources which hitherto were used without caution
• The policy will stop the practice of providing and furnishing official accommodation for public servants including political office holders, the only exception being the President, the Vice President, the Senate President, the Speaker and Deputy Speaker of the House of Representatives and the Chief Justice of the Federation
• Unauthorised journeys at Government expense will be minimised
• The policy will ensure equity in the allocation of scarce resources
• Public Officers will develop and imbibe a culture of discipline and frugal use of public utilities
• The policy will encourage public officers to own vehicles, houses and furniture, thereby assisting them to plan better for their retirement
• Overall, the Monetisation Policy will eliminate the trauma of transition from public life to private, which sadly, has resulted in many Public Servants dying shortly after retirement
As stated by Ayodele and falokun (2005), monetisation can be discussed meaningfully from two broad dimensions based on the foregoing:
(i) Employee reward system stemming from the concern for equitable reward for all categories of employees efficient allocation of scarce resources;
(ii) Resource management for effective resource utilisation. Given the above, the drivers of the monetisation policy are:
ECO 247 NIGERIAN ECONOMY IN PERSPECTIVE 2
146
a) the encouragement of public servant to own personal asset (houses, comfortable post-service life properties, etc.);
b) the minimisation of wastes, misuse and abuse of public facilities;
c) the reduction in capital, maintenance and running cost;
d) the production of the observance of maintenance culture and discipline in the use of public utilities;
e) the reduction in the rent cost burden on government;
f) the provision of a stronger base for the execution of more capital project from the conservation of resource from the policy process.
The implementation of the policy is supposed to be gradual and should be in phases to avoid getting the economy overheated. In this regard, the phases are as follows:
(i) Public office holders to be implemented in full beginning with the lawmakers from July, 2003
(ii) Civil servant to be partially implemented effective from 1st October 2003, but actual payment commenced between March and May 2003, with the arrears still outstanding in most ministries.
(iii) Parastatals- yet to be implemented. However, observations show that some parastatals already have in place viable monetisation policy in various dimensions.
It is important to recognise that the non-uniformity in the implementation of the policy has already sown confusion and distrust.
The policy implementation does not seem to align with the formulation.
It would have been easier and better implemented if made gradual experimenting with one item which could be for few years to perfect before jumping to another item learning from previous experiences as proposed for enterprises reforms under guided privatisation.
It is contended that, although, the objectives of the policy may appear laudable and splendid, the implementation impacts of the policy are likely to be catastrophic if care is not taken. The cushioning measures of the government to alleviate the adverse effect of the policy are questionable, insufficient, cosmetic and superficial in nature. Inevitably, it is likely to be more beneficial to the political class than the public servants; compound societal problems, hence will impact negatively on productivity of workers. It is a contention that the sustainability of the policy, depends on the ability of the country to foot the cost, availability of political will and popular acceptability of the effect of the policy (Agba, 2003).
147
4.0 CONCLUSION
Conceptually, the monetisation of workers’ benefit operationally implies the conversion of workers’ benefit previously made available in kind to public officers into cash payment. Included among such benefits are the provision of free accommodation and its maintenance, furniture, transportation and chauffeur driven vehicles for top public office holders. Others being paid in cash include payments for utilities in the official residence, meal subsidy, domestic servants allowance, leave grant and medical allowance on a reimbursable basis. Fringe benefits and allowances have always been an integral aspect of the remuneration of officers in the Nigerian Public Service. Consequently, Government introduced the monetisation programmes, on the conviction that the policy will minimise such negative fiscal tendencies as waste and abuse of public facilities. In addition, it encourages public servant to own personal asset and reduce capital, maintenance and running cost. The non-uniformity in the implementation of the policy has already sown confusion and distrust. The policy implementation does not seem to align with the formulation. The cushioning measures of the government to alleviate the adverse effect of the policy have been described as questionable, insufficient, cosmetic and superficial in nature. Inevitably, it is likely to be more beneficial to the political class than the public servants, compound societal problems, hence will impact negatively on productivity of workers if not properly implemented.
5 . 0 S U M M A R Y
This unit exposed us to another important economic policy in Nigeria, the monetisation policy. We have successfully defined the meaning of the policy while defining the rationale for its adoption. We also discuss the components and scope of the programme while weighing the gains and likely challenges of the policy in implementation. Next you will have the opportunity to know much about the recent vision 20:2020 plan in addition to other policies you have learnt about.
6.0 TUTOR-MARKED ASSIGNMENT
Argue both in favour and against the implementation of the Monetisation Policy in Nigeria.
7.0 REFERENCES/FURTHER READINGS
Adeyemi, S.O. (1996).Beyond Structural Adjustment: A Policy Framework. Beyond Adjustment; Management of the Nigerian Economy. 1996 NES Conference Proceedings, 113-141
ECO 247 NIGERIAN ECONOMY IN PERSPECTIVE 2
148
Agba, M.S (2006). The Monetisation Policy of the Federal Government of Nigeria and its Implication, Sophia. An African Journal of Philosophy, 8(2): 77-83
Ahmed Yayale M. (2004). Implication of Monetisation Civil Service Fringe Benefits on the 2004 Federal Government Budget, Bullion, A Publication of the Central Bank of Nigeria, 28(2) Akinyosoye, V.O. (2005).Government and Agriculture in Nigeria,
Analysis of Policies, Programmes and Administration. Macmillan Nigeria Publishers Limited, Yaba lagos. 598pp
Aluko, M.E (2003). The Monetisation of Fringe Benefits in the Nigerian Public Service, Burtonsville, M.D, USA, July 15, 2003
Ayodele A.S. (2005).The 2003 Monetisation Policy in Public Service.
Paper Presented at the Workshop on Policy Issues on the Nigerian Economy, NCEMA, Ibadan
Federal Ministry of Finance (2011). Monetisation of Benefits in Public Service.
Federal Ministry of Finance, Abuja. www.fmf.gov.ng
Odeleye, A.T. (2009).Nigerian Economy in Perspective (Vol. 1) (Pre-colonial Era till Date), Larritone Books International, Ibadan Nigeria, 120pp
Oke, T.O. (2004). Issues in Monetisation of Public Sector Officers Benefits. Paper Presented at the Workshop on Policy issues on the Nigerian Economy, NCEMA, Ibadan, August 9-13, 2004
149
UNIT 3 VISION 20: 2020