Nigeria civil service renewal project
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NIGERIA CIVIL SERVICE RENEWAL PROJECT. Mike Stevens Consultant May 4, 2004. Background to Project. Nigeria is a federal country, FGN has both traditional federal responsibilities and overlapping state/federal ones.

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NIGERIA CIVIL SERVICE RENEWAL PROJECT

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Nigeria civil service renewal project

NIGERIA CIVIL SERVICE RENEWAL PROJECT

Mike Stevens

Consultant

May 4, 2004


Background to project

Background to Project

  • Nigeria is a federal country, FGN has both traditional federal responsibilities and overlapping state/federal ones.

  • 4/5th revenue comes from oil, TR equivalent to 40-50% GDP. Lion’s share (c. 25% GDP) goes to FGN.

  • Spending has ratcheted upward with each oil price surge, debt has increased when it has fallen.

  • Despite resources, CS salaries are low, overheads inadequate, and capital projects are seldom completed. CS unable to deliver services reliably.


Background contd

Background contd.

  • Nobody knows real CS numbers. c 160,000 in CS, 800,000-1.2m in Public service.

  • Believed to be many ghosts, double dippers, over-age, fraudulently appointed staff.

  • Window of opportunity with new economic team, determined to improve governance.

  • Unusual configuration of project. Driving force is economic team, whose ministries/agencies will be “pilot” ministries undergoing restructuring and rightsizing.


Background contd1

Background contd

  • OHSF ambivalent about reform – rhetorically in favour, many believe it prefers to manage the status quo.

  • PRSP Bureau (PIU) is under OHSF.

  • Suspicion of WB support for CSR – equated with downsizing. Legacy of military and SAP.

  • Pool system. Ministries can hire/fire lower grades, but middle and higher civil servants belong to centrally posted “pools”.


Typical fraud types

Inflated salary/allowances

Unauthorized hiring

Forged qualifications

Accelerated promotions

Ghost workers

Payroll staff collusion

Working pensioners

Multiple employments

Leave with(out) pay

Diversion of vote funds

Deductions waived

Transfers

Source: Payroll and Personnel Controls, Public Sector Reform Program, Nigeria, Adam Smith International

Typical Fraud Types


Project design

Project Design

  • Restructuring, re-equipment and re-sizing of pilot ministries/agencies.

  • CS wide changes in rules.

  • Redefinition of roles of OHCF, FCSC., FCC and capacity building.

  • C. $75 million.

  • “Pilot” project status.


How does nigeria stack up against seven design challenges

How does Nigeria stack up against seven design challenges?

  • Big Bang or institutional reforms: can’t do big bang because uncertain of existing numbers. Process reform to generate better numbers and flush out fraud.

  • Adequate Planning: Legal implications clear – FGN has a right to retire civil servants, but must pay heavy compensation. Difficult to estimate fiscal impact without retrenchment numbers.


Design challenges cont d

Design Challenges cont’d.

  • Addressing sources of resistance: vested interests in status quo. Change management strategy.

  • Sequencing: critical need to first create effective personnel and establishment controls – risks of sabotage. But public service re-entry remains a risk. Special problem of “pool” staff.

  • Targetting reductions:actual downsizing of pool staff will come later, after stronger controls put squeeze on existing fraud. No firm decision on method of downsizing. Lower grades easier.


Design challenges cont d1

Design Challenges cont’d

  • Facilitating re-entry: no firm decisions, FGN considering special credit schemes, resettlement etc. Risks that schemes become

  • Making severance cost effective andacceptable: bad record of military, resistance to loss of informal earnings, public realizes CS is “bloated”, but many families have a relative within the system. Surveys of pilot agency staff planned.


To summarize

To Summarize

  • Window of opportunity to address dysfunctional government.

  • Change management is crucial.

  • Start with payroll and personnel controls.

  • Reform will take a long time.


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