PUBLIC SERVICE REFORMS AND THE FUTURE OF TRADE UNIONISM … · attack on the public sector as...

Sahel Analyst: ISSN 1117-4668 Page 22

PUBLIC SERVICE REFORMS AND THE FUTURE OF TRADE

UNIONISM IN NIGERIA (2000-2015)

A.I. Mustapha PhD1

[email protected]; [email protected]

Oluchi Justin-Ugo (Mrs)1

Abstract

The paper examined the nexus between public service reforms, with

special emphasis on the Obasanjo Administration, and the future of trade

unionism in Nigeria. The trade unions under this sector were not exempted

from the harsh reality of the reform policies. This work looks extensively at

the various reforms of the administration and the contention of this paper is

that although the reforms were carefully analysed by the advocates, the

adverse effects on public servants were grave, with the job losses occasioned

by privatisation, downsizing/rightsizing as well as outsourcing. The massive

job loss makes a number of unions in the public service endangered species as

they face possible extinction. The paper concludes that the reforms carried out

have yielded little impact and have not been workers- friendly. The paper

recommends that government should carry out reforms that will not lead to

job loss and that trade unions should mobilise their members to the effective

and efficient delivery of public goods the consequent of which will be less

attack on the public sector as incapable of productivity without neo-liberal

masterminded reforms.

Keywords: Reforms, Trade unions, Public policies, Service delivery,

Efficiency, Public service

Introduction

The creation of public service dates back to the colonial era and was

established to maintain law and order in the colony. In the last few decades,

there has been massive growth of the sector in Nigeria. However, this growth

has led to some negative tendencies like higher government expenditures,

inefficiencies and waste (Aduma & Eneh, 2016). Most governments would

not tolerate these organisational ills. This is because public service remains a

major determinant of success or failure of any administration in power. The

1 Department of Public Administration, University of Benin, Benin City, Nigeria.

mailto:[email protected]

African Journal of Management (Vol.2, No.1, 2017), Business Admin. University of Maiduguri

Sahel Analyst: ISSN 1117- 4668 3

administration of President Obasanjo was very conscious of the nature and

importance of the public service (Okoye et al., 2012) and therefore embraced

reforms in all sectors of the economy.

Nigeria public service like many other bureaucracies is structured after

the Weberian style of administration. The style gave birth to two distinct

classes (the management and the unions representing the staff) whose

relationship was sometimes antagonistic. The implication is low morale on the

part of workers and demand for improved conditions of service.

Within the public service is the civil service which makes up the inner

core of the public service (Anifowose & Enemuo, 1999). The public service

has been afflicted over the years with problems like poor performance,

corruption, ghost workers syndrome, as well as absenteeism and these, created

the need to reposition it by making it compatible with the realities of global

standard (Maikud, 2012). Part of the reforms in the Nigerian public sector

focussed on the “overbloatedness” as espoused by the neo-liberal dictates and

the imperative of shrinkage in government. This speaks directly to the fact

that the size of the government must reduce; the expenditure of the

government must be curtailed; economy must be brought into governance etc.

The reduction in size means a mass sack of workers that is expressed in

various euphemisms like “rightsizing”, and “downsizing” with government

policy to provide a legal framework for it. Apart from this policy, other

policies like monetisation, outsourcing, phasing out of some cadres etc. have

direct consequences on some trade unions in the public service to the extent

that the trade union movement in the public service has become an

endangered species. This is the major reason for this work. It then provokes

research attention the reasons why some trade unions were at the receiving

end of the policies; what have the unions left undone that led to the

consequences? What should the different trade unions in the public service

begin to do to avert advert consequences of government policies in the future?

Literature Review

Obasanjo Reforms (1999 - 2007)

The focus of this work which is the reform undertaken by the

Obasanjo administration had the establishment of the Bureau for Public

Service Reform (BPSR) among other things, streamline and set a minimum

standard in terms of staff strength and remuneration for the public service.

According to HTSPE (HTSPE was founded in 1953 as Hunting Technical

Services, a natural resource management consultancy in 1998, HTS was

acquired by Genus plc, a year later Genus also bought P-E International, a

firm focused on management consulting. Genus merged the two firms in

2004, thus giving birth to HTSPE), an international consultancy company that

worked in partnership with the federal government on the reform programmes

via the public service reforms of the Obasanjo administration which embarked

upon among other things: to tackle pay roll fraud, remove ghost workers and

Public Service Reforms and the Future of Trade Unionism in Nigeria (2000-2015)


the large number of redundant posts, facilitate a process of organisational

restructuring, improve service delivery standards, and facilitate a process of

pay reform that would provide incentives for quality staff to come into the

service, and stay there (HTSPE 2007) .

The 1999-2007 Reform was introduced by President Olusegun

Obasanjo with the task „to build a civil service that is performance and result

oriented, professional and technologically sensitive, and committed to a

continuous improvement in the conduct of government business and the

enhancement of national productivity‟ (Ajayi, 2006). The core thrust of the

federal government position as Ajayi (2006) explains it was to „reposition and

re-professionalise the public service for greater efficiency, effectiveness in

service delivery, accountability, transparency, and overall national

productivity‟. Hence, the reforms components are the Pension Reform,

Monetisation Policy, Restructuring and Repositioning of Ministries,

Downsizing, Financial Regulations and Anti-Corruption Policy, and Service

Delivery, thus we will examine six components of reform policy: Pension

Reform, Monetisation Policy, the Restructuring and Repositioning of

Ministries, Downsizing in the Public Sector, Privatisation, and Service

Delivery.

Pattern of the Reform Process in Nigeria

Since independence in 1960, the postcolonial Nigerian state has been

undergoing serious socio-political, economic, and administrative problems.

The state has shown that the political and administrative institutions have been

for years facing chaotic and perpetual structural dilemmas. The political elites

who inherited political power from the departed colonialists had been accused

of having no genuine intention of restructuring Nigerian economy in such a

way that it could withstand both internal and external shocks. This has been

traced to their unending quest for primitive accumulation of wealth.

Consequently, the postcolonial Nigerian state was brutally captured

and battered by the politicians who were prematurely handed the baton of

leadership of Nigeria. This ugly situation was regrettably exaggerated by the

military and their accomplices; and Nigeria was left by a group of political,

industrial and commercial misfits. As a result of this precarious trend, Nigeria

became porous and therefore vulnerable. The failure of most of the previous

administrations to initiate and prosecute enduring reforms in the public service

starting from 1963 till date left the nation undeveloped. Consequently, the

public administrative system has performed below expectations.

In 1999, when Olusegun Obasanjo assumed office as the first president

in Nigeria fourth republic, he initiated a reform agenda in order to reconstruct

and transform the economy so that the desired socio-economic development

could be attained. Onuigbo (2007) argued that the search for reasons for her

stunted economic development and growth made the Obasanjo administration

to scout around the globe in search of a solution. In Nigeria, the wider society

looks up to the civil service not only to implement development goals and


Sahel Analyst: ISSN 1117- 4668 Page 25

administer government policies on a daily basis, but also to play significant

roles in formulating development strategies, policies and programmes in such

a way that would stimulate accelerated social and economic changes (Utomi,

Duncan & Gareth, 2007). Such desired changes are naturally expected to

include reduced unemployment, increased social products and a more

equitable redistribution of income. Some of the policies and institutional

reforms that are necessary for development began to occur during the

Obasanjo administration. These reforms are mainly in the sphere of economic

management and democratisation of public institutions for effective service

delivery, mainly at the level of federal government.

Theoretical Framework This work adopts New Public Management (NPM) theory which takes

its intellectual foundations from public choice theory and managerialism. The

NPM perspective is often associated with positive, action-oriented phrases

like re-inventing government, entrepreneurship, revitalisation of the public

service, organisational transformation, total quality management, re-

engineering, empowerment etc. (Butcher, 1997).

The major assumption of this theory is that emphasis is shifted from

the traditional public administration to public management and therefore

pushes the state towards managerialism (Nkwede, 2013). The traditional

model of organisation and delivery of public service is based on the principle

of bureaucratic hierarchy, planning, centralisation and self-sufficiency is

replaced by a market based public service management (Larbi, 1998)

Another assumption is that large state bureaucracies like the public

service are defective and wasteful. For that to change, there would need to

establish the entrepreneurial model of public management and that would

result in the restructuring of the public sector through privatisation, subletting,

downsizing/rightsizing, outsourcing and other reform policies that could be

adopted.

The relevance of this theory to public service reforms in Nigeria can

be hinged on the premise that the reforms and the various policies that have

emanated from the administrations since 2000-2015, with a special focus on

the Obasanjo administration are identifiable both in content and essence with

the new public management.

Overview of Public Service Reforms in Nigeria (2000 – 2015)

Public service plays a crucial role in Nigeria as it is the machinery of

government that is saddled with the responsibility of implementing policies as

well as delivery of goods and services by and for the government. When

Nigeria returned to democratic rule in May 1999, a lot of reforms were

initiated to bring about efficiency and effectiveness in the public service. The

service had hitherto been inundated with all manner of ills and organisational

ailments.

The government having these challenges at hand embarked on reforms

that would revitalise the public sector with a view to adequately empowering



civil servants to sustain the reforms (Ake & Olakunle, 2016). The preceding

15 years of military rule had wreaked so much destruction on virtually all the

aspects of the country‟s public life and so Nigeria needed a complete

transformation to redeem it and that set the Obasanjo government on the path

of reform (Ayee, 2013).

According to HTSPE, an international consultancy company that

worked in partnership with the federal government on the public service

reforms of the Obasanjo administration, it was an exercise to remove ghost

workers as well as a large number of redundant posts, facilitate a process of

organisation restructuring, and improve service delivery amongst others

(HTSPE, 2007).

In view of the fact that the Obasanjo reforms constitute the crux of this

study, the paper would look at some of its components, namely: pension

reforms, monetisation policy, rightsizing, privatisation, service delivery

amongst others.

Rightsizing Policy

The neo-liberal reformists use the concepts such as rationalisation, downsizing

and rightsizing as euphemism referring to retrenchment or mass sack of

workers. Federal institutions witnessed a tremendous increase in the staff

strength shortly before the emergence of the Obasanjo administration. One of

the problems faced by the Obasanjo regime was an over bloated staff strength

(Okorie & Odo, 2014). This over bloated staff strength increased the recurrent

expenditure without any increase in the quality of service delivery.

According to advocates of this reform policy, its aim was to minimise

personnel cost as well as redundancy in the public sector. In order to downsize

the sector, some of the parastatals were either merged or scrapped or

rationalised. The Ministry of Finance, for example, was rationalised from 13

to 10 departments, National planning commission was also rationalised from

11 to 7 departments, while National Manpower Board was merged with

Nigeria Institute of Social and Economic Research (NISER) and the National

Centre for Economic Management and Administration (NCEMA) merged

with the Centre for Management and Development (CMD) (Olaopa, 2008).

The reform policy of downsizing also resulted in the cleansing of the

service according to the reformers. The criteria for disengagement from office

were specified to include the officers appointed without due authorisation;

officers with cases of misconduct; officers without entry qualification or

necessary skills for the jobs; officers who are mentally unfit; officers who

have become redundant due to the restructuring of their organisation; officers

who wish to proceed on voluntary retirement; officers adjudged to be

inefficient or have unsatisfactory character; and, officers in jobs which

services are monetised, outsourced or abolished such as cleaners, drivers,

cooks, security personnel, messengers etc. (Olaopa, 2008; Eme & Ugwu,

2011)



This purging led to a lot of job loss. Aluko (2007) posits that the

administration had about 4.8 million Nigerians retrenched across the entire

public service which was in a bid to right size the sector.

Restructuring and Repositioning of Ministries

The Obasanjo administration was committed to achieving civil service

that is based on international best practices and technologically driven worker-

force through information and communication technologies as well as

professionalism to solve the problems of over bloated staff, resolve the

problem of duplication and overlapping functions between/among agencies of

government (Okorie & Odo, 2014).

This particular aspect of reform would solve the problem of ghost

workers syndrome, determine the relevance of departments/agencies and

determine the actual number of staff needed for any particular MDA;

establishment of a work schedule for each cadre and posts as well as

identifying areas of training for the respective ministries. The Bureau of

Public Service Reform (BPSR) was established as an independent agency in

September 2004 to handle that assignment among a number of other related

assignments. The Bureau recommended that respective ministries be

restructured to have between 4-8 departments depending on the scope and

responsibilities.

Service Delivery

In March 2004, the Federal Executive Council (FEC) approved the

creation of SERVICOM. The main aim was the establishment of a service

compact with all Nigerians. Servicom has four main principles which include:

Affirmation of commitment of the service of Nigeria nation; the conviction

that Nigeria can only realise her full potential if citizens receive prompt and

efficient services from the states; the consideration for the needs and rights of

all Nigerians to enjoy social and economic advancement; and, a dedication to

delivering services to which citizens are entitled, timely, effectively, honestly

and transparently (Ake & Olowojolu, 2016).

Pension Reforms

Before the advent of Pension Act in 2004, the administration of

pension scheme in the public sector organisations was the responsibility of the

pension and record department of the office of establishment and management

service based on an established benefit structure (Elekwa, 2007).



TABLE 1: RETIREMENT BENEFIT (Defined Benefit Scheme) YEARS OF SERVICE GRATUITY % PENSION %

5 100 --

6 108 --

7 116 --

8 124 --

9 132 --

10 100 30

11 108 32

12 116 34

13 124 36

14 132 38

15 140 40

16 148 42

17 156 44

18 164 46

19 172 48

20 180 50

21 188 52

22 196 54

23 204 56

24 212 58

25 220 60

26 228 62

27 236 64

28 244 66

29 252 68

30 260 70

31 268 72

32 276 74

33 284 76

34 292 78

35 300 80

Source: Osuagwu, S.A.U (2002).

Pension Administration and Management in lecture modules for the

intensive training programme for federal civil servants on salary grade level

12 – 14 by the Office of the Head of Civil Service of the Federation at

Administrative Staff College of Nigeria (ASCON), Badagry between 12th

August and 20th

December 2002. However, the new pension scheme is

contributory and it is funded by both the employer and the employee; the

contribution is made at source, monthly and privately managed by Pension



Fund Administrators (PFAs) with the Pension Fund Custodian (PACs) (Ake

& Olowojolu, 2016).

This scheme is being regulated and supervised by the National Pension

Commission (PenCom). It was structured in a manner to ensure immediate

payment to the retiree and the Pension Act permitted compulsory 7.5% per

month to take home as retirement (Okorie & Odo, 2014).

Monetisation Policy

Monetisation policy which is also known as “monetisation of fringe

benefits” is a new approach to the remuneration of public officers in Nigeria

which came about through the passage of certain Political and Judicial Office

Holders. This policy was introduced in June 2003 starting from the political

office holders and later extended to core public servants. The policy was

aimed at quantifying in monetary terms those fringe benefits provided for

workers as part of their conditions of service and monetise them. Such fringe

benefits include utility bills such as electricity, water and telephone services,

and the cost of maintaining chains of domestic servants and in some cases

wardrobe allowances. It also monetised the salaries and allowances of public

servants that were formally paid in kind (Stephen, 2011). A fringe benefit was

a system of waste that characterised the service and the government identified

the need for a transition from that culture. Although the policy was aimed at

benefitting the workers at implementation, it, however, led to the

disengagement and consequent unemployment of thousands in those cadres

whose services were monetised, outsourced or completely phased out

(Mustapha, 2013).

However, according to the monetisation policy, seven distinct

allowances were monetised. Residential Accommodation was monetised at

50% of the annual basic salaries of officers on Grade Levels 01-06 in the

public services, while 60% for Grade Levels 07-14; and 75% for Grade Levels

15-17, including Federal Permanent Secretaries and Head of Services of the

Federation. All grade levels in the Public Service of the Federation were to

receive 25% of their annual basic salary while grade Level 01-06 were to

receive 15% of their annual basic salary as utility allowance as against 20%

for officers on Grade Level 17, i.e. Permanent Secretaries, and Head of

Services of the Federation

Privatisation policy

According to National Council on Privatisation (NCP), the reason

given by government for its privatisation policy was that there was need to

reduce the dominance of unproductive investments in the public sector in the

light of dwindling oil revenue and increasing external debts (Okeke et al.,

2016). The exercise of privatisation started with the commercialisation of

some enterprises like the Nigeria Railway Corporation (NRC), National

Electric Power Authority (NEPA), Nigerian Telecommunication Limited

(NITEL) and the postal services. Remarkably, privatisation programme in

Nigeria started with the commercialisation of public enterprises. This became



inevitable because it was less cumbersome and easier to achieve. It only

entailed detaching the enterprises from government departments and

ministries and made them be cost accountability centres as done in the private

sector (Adeyemo & Salami, 2008).

Effects of Public Service Reforms on Trade Unionism: An Analysis

The reforms of Obasanjo administration in the public sector has been

analysed in the previous sections. Although those reforms were formulated to

handle the different issues in the public sector, they have noticeable effects on

the trade unions in Nigeria public service. It is important to note that there are

several trade unions in public sector and they include:

i. Association of Senior Civil Servant of Nigeria (ASCSN)

ii. Nigeria Union of Civil Service Secretarial and Stenographic Workers

(NUCSSSW)

iii. Nigeria Civil Service Union (NCSU)

iv. Amalgamated Union of Public Corporations, Civil Service Technical and

Recreational Service Employees (AUPCTRE)

v. Medical and Health Workers Union of Nigeria (MHWUN)

vi. National Association of Nigeria Nurses and Midwives (NANNM)

vii. Agriculture and Allied Workers Union of Nigeria (AAWUN)

viii. National Union of Printing, Publishing, Paper and Paper Product Workers

(NUPPPPW)

There have been some controversies with the Nigerian public service

reforms coupled with lack of political will by the ruling elite and the nature of

the economic system and governance in Nigeria that is characterised by

negligence and excessive accumulation of wealth by the few privileged that

have access to power and the paraphernalia of political office. Factors like

these contribute to the failure of the numerous attempts to reform the public

service from post-independence till today. Another problem inherent in the

reform process is the formulation and implementation of the reform policies

when spearheaded by politicians who do not have core bureaucratic

experience; like the Public Service Reform Team (PSRT) which was headed

by Nasir Ahmed El-Rufal, a politician. Under his watch, there was also the

delay in the establishment of the Bureau for Public Service Reform (BPSR)

until September 2003, about four years and four months into the

administration. The implication of this act was that the first tenure lacked

bureaucratic leadership for coordination of the reform initiatives which

metamorphosed into the haphazard and peace-meal application of the reforms.

Looking at the privatisation policy of the government, it is clear that it

had been a policy meant to relieve government liability and waste. It has been

argued, however, that privatisation is anti-labour and always lead to

retrenchment of workers and consequently exacerbate the already high rate of

unemployment in the society. The National Union of Electricity Employees

and NITEL workers vehemently kicked against the privatisation of NEPA and



NITEL as it seemed as anti-workers and would further impoverish the masses

of which the trade union members belong.

Privatisation encourages casualization of labour which increases

insecurity in the employment relationship thereby forcing massive employees

into early retirement. This development has serious implications for the

membership of trade unions because the casual staff is not defined as

members of trade unions and the basis of the junior staff unions are fast being

eroded with the privatisation policy which further threatens the future of trade

unionism. Onimode (1988) argued that privatisation is a class-inspired policy

designed for the regressive distribution of wealth, income and power, the

effect of which were a massive retrenchment of workers, reduction in union

membership and union density, reduced union funds and lethargy of unionism

due to widespread job insecurity (Onyeonoru, 1994).

The fall-out of privatisation in the public sector is that many workers

have lost their jobs. Figures available indicate that 8,000 workers lost their

jobs in Nigerian Telecommunication Limited (NITEL), 8,991 from the

Nigerian Ports Authority (NPA), 4,800 from the Nigerian Postal Service

(NIPOST), and 1,800 from the Federal Airports Authority of Nigeria (FAAN).

From the core civil service, a total of 45,000 civil servants in the junior

categories have been laid off due to the reforms. Despite forcing these

employees into premature retirement, accessing their benefits has been very

difficult and this is a problem affecting the trade unions (Adewumi, 2012).

Another policy focus in this work is the monetisation policy. In spite

of the benefit offered by the policy, its impact on trade union membership

created chaos in that with the monetisation policy, the need to phase out

certain cadres who mostly belong to AUPCTRE and NCSU was imminent.

The monetisation of services rendered by domestic servants, mechanics, other

artisans and drivers to a certain category of officers invariably led to the

disengagement of such workers. Trade unions such as AUPCTRE that

unionised such disengaged workers suffered membership depletion arising

from massive job loss from monetisation policy. Another aspect of the reform

policy is outsourcing. Outsourcing is seen as a component of public service

reforms whose aim was to achieve better government financial management

(Ryan, 2013). In a bid to affect the new public management model in the

public service, outsourcing of certain services that were seen as better handled

by the private sector was adopted, as this was seen to have helped reduce the

over-bloated size of public sector employees but what was ignored in all these

was those affected by this policy particularly grade level 01-06 which

constituted about 70% of the entire workforce (Ofoegbu, et al, 2015). These

grade levels were the most hit and this has gravely affected the membership of

the NCSU, trade union, they belonged to.

The downsizing/rightsizing policy which was a dictate of the IMF and

World Bank to indebted countries to reduce the size of government as part of

loans conditionality had its problems. Nigeria public service had never



witnessed the level and nature of havoc experienced under the Obasanjo

administration by way of down-sizing staff strength. About 35,700 workers

were either forcefully asked to retire or were retrenched without an honest and

transparent procedure or criteria. According to the claims of the Director

General of Bureau of Public Service Reforms (BPSR) when he had an

interview with punch newspaper about 82,700 workers had been retrenched

(Mustapha, 2013). To further understand the extent of job loss occasioned by

the reform, Aluko (2007) claimed that the administration had retrenched about

4.8 million Nigerians across the entire public service, all in a bid to downsize

the workforce and minimise the role of government.

The is no doubting the fact that trade unionism in the future public

service in Nigeria has become an endangered species. The NCSU and the

AUPCTRE have become seriously depleted and decapitated. These were

hitherto very strong trade unions that called the shots in the worker's struggle.

They have suddenly become shadows of their former selves. With various

governments dancing to the tune of neo-liberal reforms that are anti-workers

and their unions, coupled with almost zero tolerance of the private sector

organisations to allow workers organise and have vibrant unions, the future of

trade unionism in the country is bleak.

Conclusion

Every regime has always recognised the public service as an important

sector of the administration for which reform initiative is considered very

essential and so public service reforms have become a ritual to be carried out

by every administration using the same or different templates. Obasanjo,

Yar‟Adua and Jonathan in recent times embarked on a wide range of reforms

some of which include anti-corruption, downsizing, privatisation, pension act

and so on. Sadly, there is still steady deterioration in morale, output and

general efficiency in the service despite the array of reforms. For example,

Obasanjo Administration, which is our case study, recorded the highest purge

which left the service devastated. Consequent upon the mass retrenchment, the

membership of a number of trade unions in the public service has depleted

considerably. This invariably constitutes a serious threat to the survival of

such unions and subsequent threat to trade unionism in the Nigerian public

sector.

Recommendations

Right attitude towards job performance among public sector workers is

recommended for efficiency in the public service sector. It is also important to

have reforms that are more worker-friendly. Any reform that would lead to

massive job loss can never be in the interest of the country as such reforms are

capable of having negative social consequences that the state would spend a

fortune to combat.



It is also recommended that trade unions mobilise their members to put

in their best into the service especially in the area of effectiveness and

efficiency. Without the reforms patterned along the prescriptions of IMF and

World Bank, the public service should be able to, through the mobilisation of

the unions, bring about productivity, total quality management, and economy

in the management of public resources, which are the hallmarks of New

Public Management theoretical mould that has been adopted for this study.

Efficiency and effectiveness eventuate delivery of public goods to the

citizenry should be their utmost priority. By so doing, the public sector will

once again earn the confidence of the citizens and there will be less call for

reforms that would be antithetical to the existence of the trade unions in the

public service.

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