INVESTIGATING THE IMPACT OF MONETIZATION POLICY ON STAFF ATTITUDE IN THE NIGERIAN  PUBLIC SERVICE

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The Nigerian public service has undergone significant transformations over the years, particularly with the introduction of various policies aimed at improving efficiency, accountability, and resource management. One such policy that has garnered attention is the monetization policy, introduced to streamline the management of government resources, particularly in the allocation of fringe benefits to public servants. The monetization policy, implemented in Nigerian federal government agencies, entails the conversion of certain non-monetary benefits, such as housing, transportation, and utilities, into monetary equivalents. This shift from direct provision to cash compensation was intended to reduce waste, enhance transparency, and encourage cost-effectiveness in the administration of public resources. On the other hand, there have been differing opinions on the monetization policy's implementation, leading to concerns about its wider implications, especially with regard to employee morale in Nigeria's public sector. Employee morale, motivation, dedication, and job satisfaction are just a few of the behavioral and perceptual elements that make up staff attitude, and they are all vital to the efficiency and production of an organization.

Throughout the years, Nigerian administration have embarked on reform initiatives aimed at strengthening the capacity of the civil service to efficiently deliver public services. These reforms were devised to tackle identified shortcomings within the Nigerian civil service, such as excessive bureaucracy leading to service delays, pervasive corruption, and diminished productivity. However, various commissions and panels have been established to drive these reform efforts, tracing back to the Hunt Commission of 1934 and continuing through subsequent initiatives like the Bridges Committee of 1941, the Davis Commission of 1945, the Harragin Commission of 1946, the Gorsuch Commission of 1954, and the Mbanefo Commission of 1959 (Adebayo, 2019).

Among the more recent reform endeavors is the introduction of the monetization policy, aimed at combating corruption, reducing wastage of government resources, mitigating service delivery delays, addressing stagnation in senior civil service positions, and cutting down personnel costs. To achieve these objectives, the government implemented the Monetization Policy, which entailed the conversion of fringe benefits provided to civil servants as part of their compensation packages and conditions of service into cash equivalents. For instance, the policy prohibited privileges such as chauffeur-driven vehicles, private use of public utilities like phone and electricity, provision of furnished official housing, unauthorized travel at taxpayers' expense, and unequal distribution of resources (Ajayi, 2019).

Furthermore, the concept of monetization policy to curb government spending has gained traction and has been implemented in several European nations. This policy not only encompasses employees' compensation but also extends to business ventures, development initiatives, agriculture, climate change, and other government activities. Proper implementation of monetization policies has been observed to yield positive outcomes for the public.

Recently, the Nigerian public service has faced substantial criticism, primarily due to its failure to fulfill its statutory mandates and the pervasive bureaucratic corruption within its ranks. Additionally, the employees’ inability to respond effectively to public demands, such as providing quality healthcare, education, sanitation, proper supervision of government contracts, and full implementation of annual budgets, has intensified public criticism. Enhancing the quality of remuneration packages for Nigerian civil servants is widely acknowledged as a pivotal step in addressing these challenges (Arema, 2019). Consequently, many organizations are focusing on enhancing employee benefit packages as a means to cultivate a more conducive work environment and boost employee performance,and attitude towards work.Therefore, a survey will conducted in order to investigate the impact of monetization policy on staff attitude in the Nigerian  public service.

1.2 Statement of the Problem

Employees’ commitment and attitude are paramount for achieving optimal work output, as it is widely recognized that motivation plays a crucial role in driving behavior towards desired outcomes. This emphasizes the significance of establishing an effective compensation system within the realm of human resource management, particularly in more developed countries. However, the recent comparative analysis of output between Nigerian workers and those in advanced nations reveals a concerning disparity. This could be attributed to various factors, including an inequitable reward structure, inadequate income levels, and the unfavorable socio-economic and political landscape prevailing in the country.

In Nigeria, the issue of rewards has consistently been a contentious aspect of organizational dynamics. The government parastatal; ministries, departments, and agencies are witnessing a concerning rate of staff attrition, prompting a need for urgent attention from relevant authorities. However, complaints regarding low job satisfaction are widespread among employees, with many opting to seek opportunities elsewhere. In recent times, there has been a noticeable exodus of civil servants and experts not only within the public sector but also towards industries and the private sector, where they perceive better prospects and remuneration. Additionally, some individuals prioritize political appointments over their current positions, seizing such opportunities at the earliest chance available. It is in the light of these that the study seeks to investigate the impact of monetization policy on staff attitude in the Nigerian  public service.

1.3 Objectives of the Study

The main purpose of this study is to investigate the impact of monetization policy on staff attitude in the Nigerian  public service. Specifically, the study will;

1.Determine acceptability level of monetization policy among staff in the Nigerian public service.

2.Determine whether the implementation of monetization policy influences staff attitude in the Nigerian public service.

3.Determine whether monetization policy influences staff morale and commitment in the Nigerian public service.

4.Identify the factors affecting the effective implementation of monetization policy in the Nigerian public service

1.4 Research Questions

The following questions have been prepared for the study:

What is the level of acceptability of the monetization policy among staff in the Nigerian public service?

Does the implementation of the monetization policy influence staff attitude in the Nigerian public service?

How does the monetization policy influence staff morale and commitment in the Nigerian public service?

What are the factors that affect the effective implementation of the monetization policy in the Nigerian public service?

1.5 Research Hypotheses

Ho: The implementation of the monetization policy does not influence staff attitude in the Nigerian public service.

Ha: The implementation of the monetization policy influences staff attitude in the Nigerian public service.

1.6 Significance of the Study

This study shows a promising direction in this regard since it recognizes the relationship between the monetization policy's implementation and improved performance and work attitude in Nigeria's public sector. Furthermore, the results of the study would help Nigerian civil personnel better comprehend the monetization strategy and its implications for them. The research will also highlight all facets of the monetization strategy, providing the audience with the knowledge they need to offer constructive criticism. Additionally, this research will be available as literature that may be critically reviewed for use by other students who may choose to perform research in this field.

 Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of monetization policy on staff attitude in the Nigerian  public service.

1.7 Scope of the study

The scope of this study is boarded on the impact of monetization policy on staff attitude in the Nigerian public service. Empirically, this study will determine acceptability level of monetization policy among staff in the Nigerian public service, whether the implementation of monetization policy influences staff attitude in the Nigerian public service, whether monetization policy influences staff morale and commitment in the Nigerian public service and identify the factors affecting the effective implementation of monetization policy in the Nigerian public service.

Geographically, the study will be delimited to staff in the Nigerian civil servants in Imo state, Nigeria. 

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Monetization: is the process of converting non-monetary benefits, such as healthcare plans, housing allowances, or transportation subsidies, into cash equivalents.

Policy: A plan of action agreed or chosen by a political party, a business, etc. (Hornby, 2018)

Attitude: refers to a complex mental state involving beliefs, feelings, values, and dispositions to act in certain ways.