AN EXAMINATION OF THE EFFECT OF MONETIZATION POLICY ON EMPLOYEES IN AJAH LOCAL GOVERNMENT.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Local governments in Nigeria are responsible for providing essential public services at the grassroots level. These services include primary education, primary healthcare, rural development, transportation, and various community-oriented programs. Each LGA is headed by an elected chairman who oversees the local government's administration. There are also councilors representing different wards within the LGA and employees working in the sector. Without LGA, it would be difficult provide essential services to the local communities within their jurisdiction. Also, to plan, coordinate and implement policies and programmes that would improve the living conditions of the citizenry and achieve sustainable national development would be difficult.

Therefore, a skilled, motivated and efficient civil service with professional ethos is a necessary condition for good governance (Schiavo-Campo & Sundaram 2017). The quality of life in any country depends in many ways on those who work for the government (LGA employees) and the way they carry out their work (performance). According to Besley and Persson (2010), the effective functioning of the government bureaucracy is an important determinant of poverty, inequality and economic growth. Calderon (2019) asserted that the quality of infrastructure in a country mirrors the quality of the LGA and civil service of that country. Therefore, the role of the government employees in producing public outcomes is often used as a measure of their performance (Schacter 2002:4).

Monetisation refers to the policy of converting non-monetary benefits, such as housing, vehicles, and other perks, into cash payments for public servants or government employees. However, the intent behind monetisation is to increase transparency and reduce wastage in government spending.The Monetisation Policy was also designed to help counter the dependency syndrome developed by public servants. It was expected that the policy would help to prepare civil servants for post-retirement life. It could be argued that the latter objective had been met to some extent as some categories of civil servants purchased the official houses and cars given to them. Despite this, the policy has created some problems.

In addition, according to Fayomi (2018), the implementation of the Monetisation Policy induced inflation, which reduced the purchasing power and worsened the living standard of civil servants in the Nigerian ministries. He further stated that the Monetisation Policy has created a negative work attitude in the mainstream civil service because of the discrepancy in the fulfillment of monetisation packages to employee in the  local government  area as compared to public servants in other government agencies and departments. Further more, introduction of monetisation policy targets on the anticipated benefits of improved efficiency in resource allocation, minimizing waste, misuse and abuse of public facilities, reducing capital cost, maintenance and running costs on facilities, curbing public corruption, promoting maintenance culture, accountability and transparency with regards to government business or activities. All these bother on enthroning on the public service efficiency and effectiveness which connotes high productivity.Therefore, a survey will be conducted in order to examine the effect of monetization policy on employees in Ajah local government.

 1.2 Statement of the Problem

Monetization policy has contributed to inflationary pressures in the country, as it puts more money into circulation. This can lead to rising prices and a decrease in the purchasing power of the Nigerian naira. However, this policy has been criticized for creating disparities in the earnings of government workers as some employees receive larger cash allowances than others, leading to wage inequality. Further more,  the process of determining who gets what in terms of monetized benefits can be vulnerable to corruption and nepotism. Hence, it is in the light of these that the study seeks to examine the effect of monetization policy on employees in Ajah local government.

 1.3  Objectives of the Study

The main purpose of this study is to examine the effect of monetization policy on employees in Ajah local government. Specifically, the study will;

1.                   Determine whether there is a significant relationship between monetization policy and employee's performance.

2.                  Ascertain whether there is an adequate implementation of monetization policy in Ajah local government.

3.                  Investigate the impact of monetization policy implementation on employees.

1.4 Research Questions

The following questions have been prepared for the study:

1.                  Is there a statistically significant relationship between the monetization policy and employee performance?

2.                  Is the implementation of the monetization policy in Ajah local government considered adequate?

3.                  What is the impact of implementing the monetization policy on employees in Ajah local government?

1.5 Significant of the Study

An examination on the effect of monetization policy on employees in Ajah local government will be revealed to the government at various levels, policy makers and  employees in this study. It will additionally shed more light on the consequences of the monetization policy especially as regards employees’ morale and productivity drive in Ajah local government.Furthermore, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to an examination of the effect of monetization policy on employees in Ajah local government.

1.6 Scope of the study

The scope of this study is boarded on an examination of the effect of monetization policy on employees in Ajah local government. Geographically, the study will be delimited to employees in Ajah local government, Lagos state, Nigeria.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents.

In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.8 Definition of Terms

Monetization: the policy of converting non-monetary benefits, such as housing, vehicles, and other perks, into cash payments for public servants or government employees.

Employee: a person employed for wages or salary.

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