Pay Reform Key to Fixing the Public Sector in Nigeria – Olaopa

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To ensure optimal productivity by workers with top-notch skills in the country’s public service, the Chairman of the Federal Civil Service Commission (FCSC), Prof. Tunji Olaopa has urged out-of-the-box innovation to institute competitive pay policy.

Olaopa spoke when he visited the Chairman/CEO, National Salaries Incomes & Wages Commission (NSIWC), Abuja, Mr Ekpo Nta in his office in Abuja on Friday.In stating his objective for the courtesy call on the Chairman NSIWC, Prof. Olaopa said that “policy and institutional reform requires a seminal space for cross-pollination of ideas, and that silos operation must give way to a whole of government approach in ideation, reform thinking and reform design work.

In doing this, we need to deploy the network’s platform to revive institutionalised town and gown and therefore policy-research collaboration to deepen policy-engaged research and institutional reform work for all that may mean for problem-solving, policy intelligence and enhanced professionalism in the development process.

Pic1: Chairman, Federal Civil Service Commission (FCSC), Prof. Tunji Olaopa (Right) with the Chairman and Chief Executive of National Salaries, Incomes and Wages Commission (NSIWC); Ekpo Nta, Esq. (Left) during the visit of the former to the latter office today. Pic2 Hon. Chairman (FCSC) (Right in white) and Chairman, National Salaries, Incomes and Wages Commission (NSIWC); Ekpo Nta, Esq (Immediate Left); and Mr. Ede Ogaba (FCSC-Acting Perm Sec.) (Extreme Left); flanked on the (Right & Left) by Hon. Commissioners.

”The FCSC chairman whose overarching agenda is the reform of the civil service posed the question whether the public sector pay crisis which has “remained a sore reform point is irresolvable?”

To him, the tricky point is that the national transformation that will deliver the strong economy will depend significantly on restoring the status of government as employer of choice, one that is able to attract, retain and motivate the appropriate skills levels to build a capable developmental state.

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“From the FCSC end therefore, we consider that beefing up the IQ of the MDAs through redoubled meritocracy even in the context of the implementation of the Federal character policy should be our shared concern as we get all hands on the deck to deliver the renewed hope agenda of the FGN. And the restoration of competency-based HR practices in the Federal bureaucracy is the critical starting point”, he said.

Olaopa noted that the FCSC recognised that the NSIWC would be concerned that those that are paid competitive wage are the high-performers, and that whatever wage level is worked out is affordable to government as the employer and sustainable year in year out.

“Consequently, and going forward, the implementation of the Oronsaye Panel report is a starting point, though it has to be done with caution given the state of the nation. “

Much more critical is the need for a clear policy and guideline to tighten up the creation and winding up of special purpose vehicle agencies within a dynamic that is aligned to a significant treasury control as part of cost of governance control measures.

At that to put a stop to the unabating practice of dumping of staff from such agencies on the mainstream civil service, which is one cause of its bloatedness, a phenomenon which over the years has caused resentment among internal stakeholders”, he said.

Olaopa lamented that most processes in the federal service are still outmoded since the administrative system is still largely analogue, relying on paper work, in spite of ongoing digitization.

“The point to add is that such digitization should be done after the cumbersome red tape-ridden procedures and processes have been simplified,” he said.

On better remuneration for the public sector that is to be performance-related, Olaopa said: “With the performance bond signed by HE the President with the key players in government, and the on-going drive to get new performance management system fully instituted in the federal service, innovative (though delicate) pay solutions like performance-related pay will necessarily challenge our creativity.

“We also will be required to innovate if pay and compensation had to align with the growing changes in the world of work, for example when flexible employment contracts become veritable solution, going forward “Some reform ideas like the Senior Executive Service (SES) option will come to play in enlisting high-end skills locally and from the diaspora to increase the IQ of service at the top management levels. “With the brain drain phenomenon and migration of talents from the public service, creative frameworks will be required to restore government as employer of choice. “Revenue earning public enterprise and those managing social funds, anti-corruption bodies and research/policy analysis-oriented units, requiring scarce skills, have always been candidates for special pay, as for example, increasing pay in revenue raising agencies has generally improved their outcomes, while strong incentives increase productivity of skills-demanding research-oriented departments.

“More and more departments are falling into this category making it look like enhanced pay must necessarily be applied across the board at the point when MDAs have been restructured within the framework of the role of the state redefinition, so they could focus on their core functions.

” But Olaopa noted that the real value of wage and salaries’ increases gets eroded almost as soon as they are adjusted, as the “alignment between number and pay has not been sufficiently worked out to compensate for inflation, making it fall below always, living wage.

Do we take this phenomenon as a natural law that cannot be mitigated? “What about the Herzberg factor and the value of non-monetary benefits within overall system changes to stimulate improved performance.”

Thus, for Olaopa, Nigeria needs a pay policy now more than ever before. “It sure will help to guide the management of the entire compensation system. It will provide overarching philosophy to drive the achievement of adequate and competitive pay levels as national objective.

It will clarify government policy on such principles as ‘equal pay for equal work’, while conferring on NSIWC the status of the regulator of the compensation system within technical-rational construct”, he added.

Responding to the remarks, the Chairman, National Salaries and Wages Commission Mr Ekpo Nta expressed his delight at the efforts the new leadership of the Federal Civil Service Commission under the able guidance of its Chairman, Prof. Tunji Olaopa, at expanding the usual business of the FCSC from mainly recruitment into the Civil Service.

He explained that part of his Commission’s mandate is to bridge the gap between public and private sector salaries and wages and advocated for empowerment through the provision of training that ensures steady income and livelihood for workers rather than endless demand for salary increase.

Mr Nta  suggested that there is need to look at the service provision for staff exchange at the highest level of administrative leadership. He disclosed that the Commission has developed a pay policy which is being firmed up to ensure real and appropriate wage determination rather than waiting for 5 long years for salaries and wages to be reviewed.

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