Nigeria’s cost of governance is expected to remain high. This is seen happening on the back of ongoing political appointments, over bloated civil service, as well as earnings by the lawmakers, despite the introduction of the revised Public Service Rules (PSR).
The PSR seeks to cut down government payroll and prune spending.
According to the new rule which was contained in a recent circular by Folashade Yemi-Esan, head of civil service of the federation, a Director at Grade Level 17 (GL 17) or its equivalent is now expected to compulsorily retire upon the attainment of eight years in that position. This contrasts with the former PSR 020908 which put the mandatory retirement age in service at 60 years or 35 years with the exemption of judicial officers, and members of the Academic Staff Union of Universities (ASUU), among others.
Another key provision of the revised PSR includes a tenure system for Permanent Secretaries who will hold office for a term of four years and another renewable term based only on satisfactory performance.
Yemi-Esan had directed Ministries, Departments and Agencies (MDAs) to ensure compliance with the revised PSR.
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Consequently, more than 512 directors in the civil service who have spent eight years on the directorate cadre will likely be forced out of the service. The new policy is also expected to create space for Deputy Directors in the service on GL16 to rise to move up.
On the average, a director on GL 17, which is the highest paying grade on the federal civil service commission reportedly earns about N454,344 monthly, an amount which does not include other pecks and privileges that come with the office. This figure indicates that if government is able to effectively implement these reforms, it could save well over N2.8 billion annually on salaries.
Princewill Anyalaewchi, a retired assistant director at the ministry of education has applauded government for the policy as it will allow younger workers to rise to the directorate cadre, and also encourage novelty and innovation in governance.
The new rule has already commenced in the MDAs, BusinessDay learnt. The federal ministry of finance, for instance, in a recent circular ordered all of its directors of Grade Level 17, who have put in eight years on the post to tender their notices for immediate retirement.
Prior to the unveiling of PSR policy, President Tinubu had expressed shock over the payroll of the civil service service and had told the visiting President of the World Bank Ajay Banga last week, about an ongoing comprehensive forensic audit at the Central Bank of Nigeria as well as an imminent thorough overhaul of the civil service payroll.
“A comprehensive forensic audit is on-going at the Central Bank. We are going to do very serious structural review of the Civil Service payroll. I can’t believe in the numbers I’m seeing and I’ve had that experience before at the state level,” the president said according to a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale.
But there are still concerns that with the appointment of 48 ministerial nominees, the Tinubu-led administration, even as he tries to push against rising costs appears poised to further expand the cost of governance in the face of scarce revenues.
Experts who spoke to BusinessDay are worried that the policy, despite looking positive may not really address the much clamoured cost of governance.
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Muda Yusuf, director, Centre for Promotion Private Enterprises (CPPE), while commending the policy, which according to him, will allow for regeneration within the government system, however noted that the policy would not contribute to cost reduction in governance which according to him is a more critical issue.
Yusuf, who decried the bloated number of ministerial appointees and political appointments was of the view that it will impact the cost of running government.
“It is not good for anyone to stay too long in a position, eight years is a long time in service,” he stated. “It is good policy because it will create opportunities for young persons to come up with innovative ideas that can impact the government. But this has nothing to do with cutting costs which is what is expected”, he added.
The immidiate past administration budgeted N5.33 trillion for payment of salaries of civil servants in the 2023 fiscal period, as contained in the Medium-Term Expenditure Framework 2023-2025 which was prepared by the Ministry of Finance, Budget and National Planning.
A breakdown of the document showed that the amount projected for personnel costs rose from the current N4.33 trillion approved in the 2022 federal government budget to N5.33 trillion in 2023. Also, the personnel cost of Ministries, Departments and Agencies of government rose by N830bn from N3.71 trillion in 2022 to N4.54 trillion.
Experts further said the policy will promote innovation, while also aiding the fight against corruption in government.
Tope Musowo, a public affairs analyst told BusinessDay that this is right and should be replicated across other government MDAs especially at the sub national level.
“To even get to that level 17 in the civil service, you should be close to your retirement then for you to have stayed on that same level means you have doctored your age if that is investigated,” he said.
Musowo said if policies like this are not implemented, some directors will remain in the position for as long as 10 years, which inhibits chances of promotion for other civil servants as well as recruitment exercise for new employees.
Eze Onyekpere, a lawyer and Executive Director of the Centre for Social Justice said the directive will not have any significant effect on government finances, because the directors are entitled to their severance benefits and will also be replaced by other officials.
“The directors will be paid their entitlements, gratuity and other severance packages and whoever is coming to take their positions will be promoted so it will not have any spectacular impact on the finances of government,” he said.
However for the Executive Director of Civil Society Legislative Advocacy Centre, Auwal Musa, Ibrahim (Rafsanjani), said that the civil service needs an overhaul, and especially highlighted the needing for capacity building.
