Transcript nigeria civil service renewal project

NIGERIA CIVIL
SERVICE RENEWAL
PROJECT
Mike Stevens
Consultant
May 4, 2004
Background to Project
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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 4050% 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.
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Nobody knows real CS numbers. c 160,000 in CS,
800,000-1.2m in Public service.
Believed to be many ghosts, double dippers, overage, 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
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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
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Inflated
salary/allowances
Unauthorized hiring
Forged
qualifications
Accelerated
promotions
Ghost workers
Payroll staff
collusion
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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
Project Design
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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?
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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.
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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
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Facilitating re-entry: no firm decisions, FGN
considering special credit schemes, resettlement
etc. Risks that schemes become
Making severance cost effective and
acceptable: 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
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Window of opportunity to address dysfunctional
government.
Change management is crucial.
Start with payroll and personnel controls.
Reform will take a long time.