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

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.

  • 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.

  • 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 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”.


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

  • 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?

  • 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.

  • 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’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

  • 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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