ASSESSMENT OF CIVIL SERVICE REFORMS IN THE NIGERIAN PUBLIC SECTOR (A STUDY OF POWER HOLDINGS COMPANY OF NIGERIA


Content

ABSTRACT

Successive governments in Nigeria have introduced reforms aimed at improving the efficiency and effectiveness of the civil service. Still, the service remains inefficient and incapable of reforming itself, let alone the rest of the economy. Corruption has become and endemic feature of public sector activities, with the oil booms and bust distorting the incentive structures of civil servants and other agents in the economy. To turn the tide will demand the creation of and efficiency-based incentive scheme that links reward to performance. Political interference in the daily operations of the civil service needs to be minimized if the confidence of the public service is to be restored. Wage incentives are also important in restoring morale. An underpaid civil service will not be able to perform its patriotic duty.

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

TITLE PAGE  2

CERTIFICATION   2

DEDICATION   2

ACKNOWLEDGEMENT  4

ABSTRACT  5

TABLE OF CONTENTS  5

 

                1.1    Background of Study                                                       1

                1.2    Statement of Problem                                                       9

                1.3    Objective of Study                                                           10

                1.4    Research Questions                                                          10

                1.5    Hypothesis                                                                       10

                1.6    Significance of the Study                                                 11

                1.7   Scope and Limitation of Study                                        12

                1.8    Limitation of Study                                                          12

                         References                                                                        13

CHAPTER TWO

Review of Related Literature

                2.1    Theoretical Framework                                                    15

                2.2  Structure and Functions of the Nigeria Civil Service       16

                2.3    Organisation of Civil Service                                           18

                2.4    Civil Service Reforms                                                     21

                2.5    Civil Service Reforms in Nigeria 1934-1994                  22

                2.6   The Tudor Davis and Harragin Commission

                         (1945 and 1946)                                                               22

                2.7    The Miller Commission of 1947                                      22

                2.8   The Gorsuch Commission (1954)                                    23

                2.9    Mbanefo Commission (1954)                                           23

               2.10 The Adebo Commission of  (1971)                                   24

2.11 The Public Service Review Commission (Udoji 

                              Commission Report 1972/74)                                          25

               2.12 Williams and William Commission (1975)                      27       

              2.12.2  Highlights of the 1988 Reforms                                     27

2.13 Achievements and Overall Gains of the Public Service

                          Reform                                                                             40

                References                                                                                  51

CHAPTER THREE

                3.0    Research Methodology                                                    54

                3.1    Research Design                                                               54

                3.2    Instrument                                                                        54

                3.3    Population of Study                                                         55

                3.4   Sample Size and Sampling Techniques                            55

3.5     Statistical Tools for Data Analysis                                 57      References             59

               CHAPTER FOUR         

                4.0    Introduction                                                                      60

                4.1    Analysis of Questionnaire                                                60

                4.2    Testing the Hypothesis                                                     65

 

CHAPTER FIVE 

Summary of Findings, Conclusions and Recommendations

                5.1    Summary of Findings                                                       69

                5.2    Conclusion                                                                       70

                5.3    Recommendation                                                             70

                         Bibliography                                                                     72

                         Appendix                                                                          76

 Questionnaire       77      

 

 

 

 

 

 

 

LIST OF TABLES

Civil Services Reforms in Nigeria 1934-1994                         22

Existing Government Owned Power Stations-Gas-Fired                  47

Table 4.1.1 Proper Implementation of civil services reforms  as it

                   contributes to the growth of Nigeria economy     60

Table 4.1.2 Assessment of manpower needs leading to economic system

                   compensation                                                        61

Table 4.1.3           Challenges in the implementation of civil service Reform polices 61

Table 4.1.4           Effective strategy for repositioning the public Service   62

Table 4.1.5           Power sector reforms encouraging the private  Investment  62

Table 4.1.6 Increasing purge of employment into the federal Civil

Service Commission                                                       63

Table 4.1.7   Proper implementation of civil service reforms            63

Table 4.1.8           Political interference as it undermines the confidence

                  Of civil service in policy design and implementation      64

Table 4.1.9 Constant Power supply as a hallmark of development

                                                In economy                                                             64

Table 4.1.10 Performance improvement through incentive Structure         64          

 

                               

INTRODUCTION

                1.1       BACKGROUND OF STUDY

The civil service has always been the tool available to Nigerian government for the implementation of developmental goals and objectives. It is seen as a pivot for growth of Nigerian economy. It is responsible for the creation of an appropriate and conducive environment in which the economy can perform optimally and it is this catalytic role of the public service that propelled government all over the world to search continuously for better ways to deliver their services (Amoako, 2003).

 

Civil Service is the instrument which government uses to regulate and manage all aspects of the society. Thus, the condition of a society is largely determined by the public service. Besides, it is from this government bureaucracy that all the other institutions obtain various types of approval, license and permits which are critical to their existence and operation. Also, government allocations of resources pass through the bureaucracy to all other areas of the society directly and indirectly. Therefore, all other institutions perforce have to deal with the civil service at one point or the other in their existence and operations (Philips, 1990).

 

 In many developing countries like Nigeria, the civil service is frequently too expensive and insufficiently productive; and civil servants, especially those in management positions get few incentives and poorly motivated (Nunberg., 1994). Many low income countries have taken important steps in first generation reforms-that is, based on restructuring and downsizing civil service. Yet, beyond a certain point, cutting cost by squeezing real wages becomes counterproductive as skilled staff members leave the civil service; those who remain becomes demoralized and absenteeism, moonlighting and corruption increase (Lienert, 1998). Overemphasis on cost-containment as an end in itself has by the way given civil service a bad name, maximizing resistant to reforms and ultimately nullifying the very savings from costcontainment itself (Schiavo-campo, 1998). To address these problems, countries have been attempting to lead second generation reforms aimed at revamping pay and promotion policies.  Yet, the multiple objectives of first generation reforms can give rise to conflicts, and little progress has been reached in second generation reforms

(Lienert, 1998).

 

As a major instrument for implementing government policies, the civil service in Nigeria is expected to be professionally competent, loyal and efficient. Nonetheless, it is now denounced for being corrupt, poorly trained and poorly attuned to the needs of the poor. Ironically, the civil service is expected to play the key role in managing and implementing reform programs in the country. This has led to a number of complex agency problems yet to be resolved. However, it is broadly acknowledged and Nigerian experience attest to this, that when the incentive structure in the  civil service remain poor, its efficiency as well as ability to effect policy such as that directed towards reducing poverty will remain very low (Salisu, 2001). 

 

The federal government initiated reforms aimed at repositioning the civil service for better efficiency and effectiveness. However, the factors affecting the efficiency of the Nigeria civil service, (Ajayi, 1998) has noted the following: over staffing and the closely related poor remuneration of employees in public service as the key factors.

Secondly, there are the issues of poor assessment of manpower needs and the use of wrong criteria to appraise staff performance. These two have led to poor recruitment procedures, inadequate training and ineffective supervision. There tends to be a lack of qualified technical support staff as opposed to the abundance of general staff. The failure to carry out periodic assessment of manpower needs of the various departments leads not only to uneconomic system of compensation but also to inadequate job description and poor physical working conditions. There has also been considerable political interference in the process of personnel administration, leading to improper delegation of power, ineffective supervision and corruption. The resulting apathy has in turn led to unauthorized and unreasonable absenteeism, lateness, idleness and notably, poor workmanship (Salisu, 2001).

          

Furthermore, the public service reflects the state of the nation and no nation has been able to advance beyond its public service. In 1994, the Ayida Panel, which was instituted to review past public service reforms in Nigeria with a view to proffering measures of further re-invigorating the service, identified the major ills of the service, which needed to be corrected to improve the dynamism and effectiveness of the civil service as follows:

v    Politicization of the top hierarchy of the civil service 

v    Lack of financial accountability and probity

v    Perpetual breakdown of discipline

v    Virtual institutionalization of corruption at all levels and segments of the service.

v    Disregard for rules and regulations

v    Loss of direction

v    General decline of effectiveness and efficiency (Adegoroye, 2005).

 In other to address these ills, the former president, Olusegun Obasanjo, after his inauguration as president of a democratic republic of Nigeria on May 29, 1999, unfolded his vision of an ideal civil service for Nigeria and by inference, an ideal public service with the following elements:

              A competent, professional, development-oriented, public spirited and customer-friendly civil service capable of responding effectively and speedily to the needs of the society;

              A civil service with the core values of political neutrality, impartiality, integrity, loyalty, transparency, professionalism and accountability;

              A civil service that is guided by equity where things are done in the right way based on extant rules and regulations but with room for distractions, which should be exercised in the public interest;

              Creation of suitable environment where civil servants are assured of protection and job security in the faithful discharge of their duties and responsibilities; A competitively, well remunerated and innovative civil service (Adegoroye,

2005).

 

Interestingly, the need for reform, then, was driven by circumstance Which have immediate resonance; the significant changes in the civil service composition with a staggering (35%) thirty-five percent reduction in the permanent staff; a significant change in the approach to people management taken place with a new- staff -appraisal system linked to performance evaluation against predetermined objectives and targets

(Ogwu, 2010).

The reform of the public service therefore became the ultimate strategy for repositioning the service for the realization of their vision as part of a multi-sectorial approach to promoting good governance, ensuring sustainable democracy and accelerated transformation. Various policy initiative and legal instruments have been put in place for the effectuation of the multi-sectorial reforms of the present administration, as encapsulated in the National Economic Empowerment and Development Strategy, the medium term development strategy document of the administration. Two of the core components of the strategy relate to public service reforms and anti-corruption reforms through the inculcation of a culture of transparency and accountability (Adegoroye, 2005).

 

In spite of the gradual and systematic reforms and restructuring since May 29, 1999, after decades of military rule, the civil service is still considered stagnant and inefficient, and the attempts made in the past by panels had little effects. One is bond to wonder therefore, why so? Much the same question has been raised by Oxford professor Christopher Hood, commenting on what he calls the civil service reform syndrome:

We have seen this movie before-albeit with a slightly different plot line with a rash of our attempt to fix up the bureaucracy with the same pattern of hype from the center, selective filtering at the extremities and political attention deficit syndrome that works against any follow-through and continuity. It is the pattern we have seen with ideas

like:

              Total quality management

              Red tape bonfires 

              Citizen charter 

              Better consultation

              Risk management

              Competencies

              Evidence-based policy

              Joined-up policy making

              Service delivery 

Such initiatives come and go overlap and ignore each other, leaving behind tombstones of varying sizes and style.

 

Many organization are using the above foundations to establish a

Policy based on quality. The Nigerian public sector enterprises cannot be an exception and that is what this study tends to investigate with regards to Power Holdings Company of Nigeria, Onitsha district.

 

Constant power supply is the hallmark of a development economy. Any nation whose energy is epileptic in supply prolongs her development and risk losing potential investors. Nigeria, a country of over (120) hundred and twenty million people has for the past (33) thirty-three years of establishment of the National Electric Power Authority (NEPA) - agency empowered with the electricity generation, transmission and distribution, witnessed frequent and persistent outages (Okoro et al, 2011).

 

Presently, the federal government has embarked on a power sector reforms with the intention of improving the above unpalatable scenario, and in turn reduces the scope of monopoly control of the nations’ power industry.

Okoro.O.I ,P.Govender ,E.Chikuni, 2011) stated that, the call for power sector reforms in Nigeria is primarily as a result of inadequate electricity supply, incessant power outages, and low generating plant available and high technical and non-technical losses that characterized the Nigerian electricity industry. The federal government in 2000 adopted a holistic approach of restructuring the power sector and privatizing of business units unbounded into seven generation companies (Gen cos), one transmission company (Transys co)and eleven  distribution companies (Dis cos). This arrangement is expected to encourage private sector investment particularly in generation and distribution. This will definitely break NEPA monopoly and pave way for the entry of independent power producers (IPPs). The structure has since come into effect in January 2004 into what is called the Power Holdings Company of Nigeria (PHCN). This structure is to be test-run for two years with down pruned management team at the head quarter, while the industrial managers of the unbundled segment are expected to enjoy some level of autonomy. 

 

In the new arrangement, Transco will be government-owned and managed by System Operators (SO) and Transmission Operators (TO). The reform bill approved by the federal executive council (FEC) is intended to achieve five objectives:

§     Unbundled NEPA

§     Privatize the unbundle entities

§     Establish a regulatory agency

§     Establish a rural electrification agency and fund

§     Establish power consumer assistance and fund

In November 2005, the Nigeria electricity regulatory commission (NERC) was Inaugurated, and charged with the responsibility of tariffs regulations and monitoring of the quality of service of the PHCN (Okoro.O.I, P.Govender, E.Chikuni, 2011).

 

Power sector reforms in a developing economy such as Nigeria poses great challenges not only to the government that initiated the program but also the populace who are the consumer of energy and to the new born PHCN which parades itself as better alternatives to the moribund NEPA

 

The historical poor performance of the power sector in Nigeria has been a significant barrier to private investment of the country. In 2005, the government of Nigeria enacted legislation intended to restructure fundamentally the Nigeria electrical power sector. The electrical power sector reform Act,2005 was designed to move the electricity sector  in Nigeria from government controlled, heavily sub-seized system to privatized largely market based Endeavour. Implementing the 2005 reform Act has been challenging for the Nigeria government and largely seems to have stalled in recent years.

 

However, the process of implementing the 2005 reform Act was revitalized when President Goodluck Jonathan established the presidential taskforce on power and published a roadmap for power sector reforms in August 2010, potentially opening the door to significant private investment in the Nigerian power sector (Firm publication,

2011).

 

 

                1.2       STATEMENT OF PROBLEM 

The Nigerian civil service has been oversized and poorly remunerated resulting in poor service delivery. Rapid public sector recruitment under military administrations had resulted in an oversized and under skilled workforce in which employees often did not have the appropriate technical skills needed for their assignments. For example, about 70 percent of workers in the ministry of finance were low-level staff clerks, cleaners and administrative staffs with a secondary school education or equivalent, 13 percent were university graduates and only 8 percent had degrees related to economics or accounting. More broadly, the government estimated that about 70 percent of federal civil servants had a high school diploma or lower with less than 5 percent possessing modern computer skill.

 

Civil servants generally received low pay and several fringe benefits such as free housing, free vehicles and various other allowances that often led to waste and misuse of government resource. Weak management and oversight also meant that there were problems with ghost workers on the government pay roll; while personnel and pension registers often were unreliable. Moreover, a weak incentive structure in a civil service, which did not foster good performance, resulted in a weak work ethic and poor service delivery by many government ministries, often characterized by hidden or outright corrupt behavior on the part of many civil servants.

 

Reforms were therefore needed to re-professionalized the civil service and increase its focus on service delivery. And the impact which the implementation of these reforms had created in the Nigerians economy is called for. 

                1.3       OBJECTIVES OF STUDY

This study tends to suggest ways by which civil service reforms will be properly implemented to achieve growth in the nations’ economy

The challenges, of civil service reform to policy Implementation

The strategy towards achieving more sustainable reform outcomes for the public service as an institution and for the government and people of Nigeria for whom the effect of the public service would be beneficial

                         

                1.4       RESEARCH QUESTIONS

The following research questions guided this study:

To what extent can proper implementation of civil service reforms achieve the desired growth in the nation economy?

What are the challenges, of proper implementation of civil service reform policy? What strategy can be proffered towards achieving more sustainable reform outcomes for public services?

 

                1.5       HYPOTHESIS

The study was guided by the following null hypothesis:

Proper implementation of civil service reforms does not contribute to the    growth of our economy

There are no challenges in the proper implementation of civil service reform policy.

The strategy proffered cannot achieve sustainable reform outcomes for public service 

 

 

                1.6       SIGNIFICANCE OF THE STUDY

As Nigeria wends its way towards democracy, it confronts daunting challenges, persistent ethnic and religious tensions, growing religious conflicts, shallow political institutions, an assertive military, a deeply depressed economy and a cynical and increasingly despairing populace. No problem, however, is more intractable and more threatening to the future of our nascent democracy than political corruption.

According to Chinua Achebe, political corruption has grown more “bold and ravenous” with each succeeding regime (Musa, 2001).

 

The public and private sector business organization particularly the Power Holdings Company Abuja Nigeria, which is the focus of this study, will find the results of this research very useful to their originations

 

Another group that will find this study useful is researchers, teachers and students of management sciences. While the topic: “ Assessment of civil service reforms in the Nigerian public sector” may not be strange to them, its application to the public sector business organizations will definitely arouse their interest, which can be in the area of knowledge or adoption of this research for further study.

 

The civil servants who are the central to policy formulation and thereby fully responsible and accountable for the success of government program and projects will find this research work useful so also are the politicians in the Nigeria society.

 

 

 

                1.7       SCOPE AND LIMITATIONS OF STUDY

The scope of this study will be on civil service reforms with a focus on Power

Holdings Company Abuja, Nigeria.

 

                1.8       LIMITATION OF STUDY

The study is limited by time and resources available to the researcher.

 

 

 

REFERENCE

 

Ajayi, S.T (1998), “Production Measurement and Improvement in the Civil Service”. Paper delivered at the 32nd Conference of the Civil Service Commission in the Federation. Kano, Nigeria

 

Dickson, C. (2008), The big fraud called public service reforms: so what has been

reformed. Ngex, Nigeria Exchange News.  

 

Economic Commission for Africa, (2003)Public Sector Management Reforms in Africa: Lessons learned”. Addis Abba, Ethopia: Development policy Management  Division  (DPMD). 

 

Firm Publication, (2011), Nigeria Power Sector Reforms: Opportunities and Challenges

for Investment.

 

Goke, A.(2005),Mainstream ethics and professionalism in public service: The Nigeria

experience”  at the conference on the African Charter and related reform, Swakopmund, Namibia. October:3-7

 

Lienert, Ian and Jitendra Modi, (1997), "A decade of civil service reform in sub-saharan Africa” IMF working Paper 97/179, Washington, DC: International Monetary Fund

Lienert, Ian, (1998), “Civil Service reform in Africa: Mixed results after 10 years”

finance and development 35(2)

Musa, S. (2001), “Charter for Public Sector in Africa: Strategies for implementation in Nigeria”. Public Lecture delivered on Africa Day of Civil Service and Administration in the federation, Nigeria. 

 

Numberg, B. (1994), Experience with civil service pay and employment reform: an

overview in David L.and Barbara Nunberg (Eds). Rehabilitating government reforms in Africa, Regional and sectorial studies series

Washinton, DC: World Bank.

 

Nwezeh, K. (2005), “Nigeria: the politics of civil service reforms” Lagos: all

Africam.com.

 

Okoro, O.I; P.Govender; and E. Chikuni (2011), Power Sector Reforms in Nigeria :

Opportunities and  Challenges http://www.power holdings coy Nigeria.com, Retrived on 17/2/2011.

 

Phillips, D. (1990), The 1988 Nigerian Civil Service reforms and their post 1992

prospects, NISER occasional, paper No3, NISER, Ibadan NIGERIA.

 

Salisu, M. (2001), “Incentive Structure, Civil Service Efficiency and Hidden Economy

in Nigeria” Discussion Paper No.2001/86, Lacanter, UK.

 

Schiavo-Campo, S. (1998), Government Employment and Pay: The Global and

regional Evidence, “Public Administration and Development 18:457478” 

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