Incidence of monetization policy and the performance of the public sector in Nigeria: A Pre and Post analysis

Abstract

There have been conflicting views on the extent to which monetisation policy has achieved the initial objectives for which it was formulated and implemented in 2003. Public servants had to adapt to receiving monetary values termed as allowances for direct services they had received previously. This study assessed the Nigerian public sector performance in the pre-monetisation and post monetisation era to ascertain whether the implementation of monetisation policy significantly caused alterations in these measures. The study employed secondary data that spanned from 1987 to 2019. Specific variables assessed were government recurrent expenditure as a percentage of government total expenditure, government effectiveness, accountability and control of corruption. Data were sourced from Worldwide Governance Indicators and the 2019 CBN statistical bulletins. The paired samples t test statistic was used for data analysis and hypotheses testing. The study recommends reforms in remuneration of public and civil servants that would take cognisance of prevalent inflation and leave the middle and lower cadres better satisfied.