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EFFECT OF MONETIZATION POLICY ON THE COST OF GOVERNANCE IN THE FEDERAL MINISTRIES OF EDUCATION AND HEALTH
ABSTRACT
Over the years cost related to fringe benefits as reflected in the overhead parts of recurrent expenditure continued to rise. This was said to have manifested due to excessive misuse of fringe benefits such as accommodation and its maintenance, motor vehicle fuelling and maintenance, public utilities and medical trips among other things. This has led to the establishment of cost conscious bride of new public management, called the monetisation policy. It was established to create discipline and maintenance culture in workers, reduce high cost of governance, and reduce the unwarranted staff on government payroll. However, despite the implementation of the policy, the recurrent expenditure continued to rise. Thus, this research aimed to investigate the effects of monetisation policy on the cost of governance in the federal ministries of education and health. Three hypotheses were formulated; maintenance culture and discipline in the use of public utilities have not reduced the cost of governance in the federal ministries of education and health; reduction in capital maintenance and running cost have not reduced cost of governance in the federal ministries of education and health and downsizing of staff has not reduced cost of governance in the federal ministries of education and health. The survey research design was used and the population size of the study is 2300 while the sample size obtained using Yamane‘s formula is 319. The sampling technique used is the stratified random sampling. Both primary and secondary data were used. The primary data is obtained through questionnaire while the secondary data are from records with the budget office of the federation, Central Bank of Nigeria and ministries of education and health. Simple percentage was used as the method of data presentation and analysis while both chi-square and regression were used to test the hypotheses.The study found that maintenance culture and discipline in the use of public utilities, reduction in capital maintenance and running cost and downsizing of staff have reduced the cost of governance in the federal ministries of education and health. The study recommended the extension of the policy to parastatals and agencies as well as introduction of the scientific approach to public utilities utilisation so as to curb implementation gap.
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