Effects of the Monetisation Policy on employee performance in the Nigerian civil service

Abstract

Background: This article examined the enormous financial burden placed on the Federal Government of Nigeria by the management and maintenance of its civil servants. The cost of governance in Nigeria continues to rise mainly because of the provision of fringe benefits (such as free residential accommodation, medical services, transport facilities and utilities, including telephone service, water and electricity) to public servants. Yet, public employees’ performance continues to decline, which leads to low levels of human and physical infrastructure development.

Aim: This article examines the effects of the rising cost of governance in Nigeria and how to enhance employee performance. The article interrogates the effects of the monetisation of fringe benefits policy (the Monetisation Policy) of the Obasanjo Administration (2003–2007).

Setting: The study was conducted in the Federal Civil Service Secretariat in Owerri, Imo State, Nigeria.

Methods: This article is anchored in social exchange theory. The study participants comprised 1007 federal civil servants selected from 32 federal establishments. The participants were selected using the total population sampling technique. A structured questionnaire with a reliability coefficient estimate of 0.742 was used to generate the data for the study. The Statistical Package for the Social Sciences (SPSS) aided the presentation and analysis of data relating to the research objectives using frequency distribution tables and testing research hypotheses with chi-square statistics and Pearson’s product–moment correlation statistic.

Results: The findings revealed that the Monetisation Policy has helped to enhance employee payment packages. A statistically significant positive correlation was found between high monetised benefits and high employee performance. The study found that the Monetisation Policy has had positive effects on employee performance in the federal civil service in Imo State.

Conclusion: This study concludes that the Monetisation Policy has helped to enhance employee motivation and morale, and to reduce employee work-related stress, which are vital indicators of work efficiency. These factors do not only affect the contextual performance of the civil servants, but also predispose their task performance. The researchers recommend that the Monetisation Policy should be sustained. It is also recommended that the government should introduce other measures aimed at enhancing the motivation of employees who receive lower monetised benefits so as to further improve the overall performance of the Nigerian civil service.