As Nigeria braces for its upcoming budget cycle, a familiar concern resurfaces: will public service prioritise national progress or fall back into rent-seeking behaviours that undermine growth?
“Rent-seeking is about using resources for personal gain instead of productive outcomes. This behaviour drains resources from society, often leading to inefficiencies and ultimately harming the economy and society.”
The call for reform is urgent. Ensuring public servants receive fair compensation could help curb corruption and foster a commitment to public welfare. Drawing inspiration from Nigeria’s early post-independence public service, this piece argues for a return to accountability and integrity in budget allocations, emphasising that the collective good must take precedence as the new fiscal year unfolds.
Understanding rent-seeking in public service
Rent-seeking is an economic term describing actions that seek financial gain without creating new value.
In politics, this often involves businesses or interest groups lobbying the government for special privileges—laws, subsidies, or regulations—that benefit them at the public’s expense. These benefits, called “rents,” grant recipients income beyond the minimum needed to provide their services, allowing them to earn above the opportunity cost.
Rent-seeking is about using resources for personal gain instead of productive outcomes. This behaviour drains resources from society, often leading to inefficiencies and ultimately harming the economy and society.
The role of bureaucrats in rent-seeking
In Nigeria, bureaucrats—government officials responsible for enforcing regulations, implementing policies, and managing public programs—are key players in rent-seeking behaviours.
It’s important to note the distinction between civilians and bureaucrats. All bureaucrats are civil servants, but not all civil servants are bureaucrats. Bureaucrats hold more administrative or managerial positions within the government and can influence the direction of public spending.
A Nigerian economist recently observed how civil servants often position themselves as beneficiaries of government programs meant for the public.
For example, if the government initiates a scheme offering financial aid to school owners, civil servants might go to the Corporate Affairs Commission (CAC) to register school names and pre-register them to benefit from the scheme before the general public even has a chance. Such practices are widespread and reflect a troubling pattern of self-prioritisation among some bureaucrats.
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The Theoretical Basis of Bureaucratic Motivation
Anthony Downs, a scholar who studied bureaucratic behaviour, argued in 1965 that bureaucrats, like other societal agents, are driven by self-interest. He proposed that they often seek to maximise their utility—status, power, and influence—rather than the public good. This theory implies that bureaucrats might expand their departments and influence to increase their budgets, regardless of the actual benefits to society.
Supporting this perspective, economist William Niskanen argued that bureaucrats prefer expanding their budgets over maximising profits or achieving social good. This mindset leads to inefficiencies within the public sector as resources are directed toward budget increases rather than productive outcomes.
An analysis of the 2024 Nigerian budget by the Nigerian Economic Summit Group (NESG) highlights this tendency, with recurrent expenditures (36.1%) outweighing capital expenditures (31.6%), reflecting an emphasis on maintaining existing systems over developing new infrastructure or initiatives.
Historical insights: The public service’s role in national development
In Nigeria’s early post-independence years, public service played a crucial role in policy-making and national development. Philip Asiodu, a former civil servant and chief economic adviser, recalled the role of the public service during the civil war in stabilising the nation. In 1969, civil servants, along with other stakeholders, met in Ibadan to develop the “3R program” of rehabilitation, reconciliation, and reconstruction, which became central to post-war recovery.
However, the strength of the Nigerian public service was severely undermined after the 1975 military coup that brought Murtala Mohammed and Olusegun Obasanjo to power. This coup led to the abrupt dismissal of over 10,000 civil servants, erasing decades of institutional memory and international connections.
According to Daniel Obi, author of Lost Vision, this event marked the beginning of economic decline in Nigeria. The combined effects of military coups, weakened governance, and abandonment of national development plans gradually eroded the capacity and integrity of the public service.
The critical importance of public service integrity
The public service is essential for implementing government policies, and its integrity directly affects Nigeria’s success in meeting its development goals. Omo Aregbeyen, Professor of Public Finance, notes that while bureaucracies are technically under the control of the executive branch, they sometimes operate with “a will, power, and legal authority all on its own.”
In this sense, bureaucrats are often referred to as the “fourth branch of government” due to their power in policy implementation and public spending.
To restore the integrity of public service and combat endemic corruption, civil servants need fair and adequate compensation. Not only that, proper retirement and mortgage plans are needed for civil servants.
Felix Ohiwerei, a member of Nigeria’s anti-corruption committee and Vision 2010, emphasised that a “living wage” is essential to discourage corruption. He argues that without fair pay, civil servants are more likely to engage in unethical behaviour, seeking personal gain over public service.
For many civil servants, the fear of inadequate resources post-retirement often drives them toward corrupt practices that undermine government programs and policies.
A call for collective responsibility
The upcoming budget cycle provides an opportunity for Nigeria’s bureaucrats to realign with the goals of public service. Rather than engaging in rent-seeking or prioritising personal gain, public servants should work towards achieving a budget that reflects societal needs and addresses collective goals.
With fair compensation and a commitment to transparency, Nigeria’s public service can return to the days when it championed policies and programs that benefitted the nation as a whole.
To truly revive public service in Nigeria, there needs to be a shift away from rent-seeking. Civil servants and bureaucrats must recognise their role as stewards of public resources, responsible for fostering social welfare over personal benefit.
In the words of anti-corruption advocate Felix Ohiwerei, “Until you can pay a living wage, it is difficult to tackle corruption.” A public service motivated by collective interest, supported by fair wages, and focused on transparent, value-driven budgeting will be instrumental in helping Nigeria achieve its development potential.
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