INVESTIGATING THE CHALLENGES AFFECTING THE EFFECTIVE IMPLEMENTATION OF MONETIZATION POLICY IN GOVERNMENT AGENCIES

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The Monetization Policy, which was implemented in the Nigerian Public Service in 2003, marked a significant turning point and a sharp break from earlier administrative changes in Nigeria since the country's independence in 1960. Its main audience, public servants, as well as the government have set ambitious and admirable aims. However, a number of doubts, misunderstandings, complaints, and skepticism have accompanied its execution.Monetization was envisioned as a means to curb corruption, reduce government expenditure, and improve service delivery. Similarly, monetization policy was implemented  with the aimed to combat corruption, curb wastage of government resources, eliminate service delivery delays, address stagnation in senior civil service positions, and reduce personnel costs. Beyond that, monetization, as a monetary policy approach, involves converting various benefits traditionally enjoyed by public servants into cash payments. According to  Ekaette (2019), some of these benefits had already undergone full or partial monetization prior to 1999. They  include leave grants, meal subsidies, entertainment allowances, duty tour allowances, and allowances for domestic servants and drivers, among others (Georgia, 2019). However, the items earmarked for monetization include residential accommodation, provision of vehicles (including fueling/maintenance), medical treatment provision, utilities (electricity, water, and telephone), and provision of personal aides, as well as housing and transportation allowances. Georgia further noted that this led to the enactment of the "Political, Public, and Judicial Office Holders Act 2003. Furthermore, the complex structure of the civil service, coupled with a lackadaisical attitude towards government assets by employees, provided justification for the introduction of the monetization policy as part of the extensive civil service reforms in 2003. This reform aimed to curb wastage by addressing poor commitment and low productivity within the Nigerian civil service, which were attributed to inadequate pay and a skewed reward system with significant expenditures on maintaining government properties. On the other hand, the enactment of the monetization policy required a significant amount of funding to ensure its widespread application. However, the Nigerian government is encountering challenges in securing the necessary funds on a monthly basis for its execution. This difficulty in procurement is hindering the reform process. State governments have also been hesitant to implement the policy, possibly due to financial constraints. Furthermore, like many other policies, the monetization policy faces issues of continuity, often depending on the political will or survival of the group initiating the reform. Once the initiators leave office, there is a tendency for policies to falter(Micah, 2022). Monetization appears to be following this pattern, as there is little evidence to suggest it is achieving its intended goals. Despite the policy, the costs associated with maintaining the government agencies continue to rise, and corruption, through the manipulation of benefits, remains prevalent. Mimiko (2016) interprets Obasanjo’s monetization policy as a hurried response by governments concerned about the escalating costs of governance due to the extensive bureaucracy inherent in the delivery of services within the economy. Therefore, a survey will be conducted to investigate the challenges affecting the effective implementation of monetization policy in government agencies.

1.2 Statement of the Problem

While the Monetization Policy has become an inertia, numerous queries, misunderstandings, skepticisms, and complaints have followed its execution. Also, widespread grief and resentment is observed. According to Makinwa, (2018), as the implementation process moves forward, government agencies employees' excitement has given way to frustration since it does not align with their preconceived expectations and hopes. Implementing the monetization policy faces significant hurdles, notably in upholding integrity, trust, and ethical standards. Similarly, Nigeria grapples with pervasive corruption, which undermines the effectiveness of the monetization policy. However, without a foundation of ethics and integrity, achieving the desired outcomes becomes challenging. According to Anowor et al.(2018) continuity poses another obstacle to the successful implementation of the monetization policy. Initiators often overlook the intricacies of policy implementation in Nigeria, where success hinges on the political survival of the initiator. Once the initiator exits office, policies tend to falter, a trend that monetization seems to be following. Furthermore, the simultaneous rollout of multiple policies by the government without considering their combined impact exacerbates challenges. Certain demographic groups, particularly those in poverty, may bear the brunt of these reforms without adequate safeguards or compensatory measures. Policies such as petroleum product pricing deregulation and import restrictions further complicate the implementation of the monetization policy. It is in the light of these that the study seeks to investigate the challenges affecting the effective implementation of monetization policy in government agencies.

1.3 Objectives of the Study

The main purpose of this study is to investigate the challenges affecting the effective implementation of monetization policy in government agencies. Specifically, the study will;

1.Assess the level of awareness of the monetization policy among civil servants in Nigeria.

2.Find out the benefits associated with the implementation of the monetization policy

3.Investigate the factors affecting the effective implementation of the monetization policy in government agencies.

1.4 Research Questions

The following questions have been prepared for the study:

What is the level of awareness among civil servants in Nigeria regarding the monetization policy?

What are the benefits that come with implementing the monetization policy?

What factors contribute to the effectiveness of implementing the monetization policy in government agencies?

1.5 Research Hypotheses

Ho: There is no significant relationship between the challenges and the effective implementation of the monetization policy in government agencies.

Ha: There is a significant relationship between the challenges and the effective implementation of the monetization policy in government agencies.

1.6 Significance of the Study

The findings of this study will contribute to improving the management of government agencies, ultimately leading to better service delivery and governance outcomes in Nigeria. Also, the results of this study will empower civil servants to make independent choices regarding their needs and preferences, thereby fostering a sense of autonomy and responsibility. Furthermore, government and policymakers will be able to gauge its success or failure and make decisions regarding its continuation, modification, or discontinuation. Additionally, other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the challenges affecting the effective implementation of monetization policy in government agencies.

1.7 Scope of the study

The scope of this study is boarded on the challenges affecting the effective implementation of monetization policy in government agencies. Empirically, this study will assess the level of awareness of the monetization policy among civil servants in Nigeria, find out the benefits associated with the implementation of the monetization policy and investigate the factors affecting the effective implementation of the monetization policy in government agencies.

Geographically, the study will be delimited to staff in government agencies, Lagos 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

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

Monetization policy: is therefore a course of action; a plan aimed at revamping the ailing economy of the country through the application of money spent on provision of incentives to public servants to the funding of social projects.

Performance: is the level of individual’s achievement that comes only after effort has been exerted. It depends not only on the amount of effort exerted, but also on the individual’s abilities and role perceptions (Hellriegel and Slocum, 2019). 

Civil servants: individuals working in government agencies and departments

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