This policy will have far reaching impact on Government planning, budgeting and discipline, and will positively impact on our national value system and ethics. The ramifications of the impact of monetization as a public policy reform can be listed as follows:

• Monetization Policy will enable Government to get the true picture of what it costs to maintain a Political Office Holder, or Public Servant, in office and therefore lead to more realistic budgeting and budget implementation; It is the most transparent avenue for the disbursement of remuneration and fringe benefits from employers to employees
• Monetization will curb the excesses of public officers, as Government will no longer provide chauffeur-driven cars to its officials. For example, unlike in the past, Ministers are now to drive to office and back in their personal cars, with their personal drivers; also the use of pilot vehicles and sirens by political office holders has been discontinued in Abuja
• The policy will correct the wrong public perception of Government utilities such as telephone, electricity and others, as limitless resources which hitherto were used without caution
• The policy will stop the practice of providing and furnishing official accommodation for public servants including political office holders, the only exception being the President, the Vice President, the Senate President, the Speaker and Deputy Speaker of the House of Representatives and the Chief Justice of the Federation
• Unauthorized journeys at Government expense will be minimized
• The policy will ensure equity in the allocation of scarce resources
• Public Officers will develop and imbibe a culture of discipline and frugal use of public utilities
• The policy will encourage public officers to own vehicles, houses and furniture, thereby assisting them to plan better for their retirement
• Overall, the Monetization Policy will eliminate the trauma of transition from public life to private, which sadly, has resulted in many Public Servants dying shortly after retirement

Monetization of Benefits in the Public Service

Fringe benefits and allowances have always been an integral aspect of the remuneration of officers in the Nigerian Public Service right from the colonial period. These fringe benefits and allowances, from time to time, have had to undergo reviews depending on the exigencies of the time. For example, several fringe benefits of public servants were monetized on the recommendation of the Udoji Salaries and Wages Review Commission (1974).

The present Administration adopted the monetization programme following strong representations by the Revenue Mobilization, Allocation and Fiscal Commission and after an intensive debate by the National nation devoting over 60% of its revenue to sustaining recurrent overheads, to the detriment of capital/infrastructural development

Consequently, Government introduced the monetization programmes, on the conviction that the policy will reduce to the barest minimum, such negative fiscal tendencies as waste and abuse of public facilities. For instance, it cost Government lots of funds to construct, purchase or rent residential accommodation for public servants. Large amounts of resources were occasionally spent on renovation, maintenance, and furnishing of such accommodation, as well as on the purchase, fuelling and maintenance of official vehicles for public servants.
It is on record that many public servants maintained a fleet of official vehicles in their offices and homes. Similarly, telephone, electricity and other utility services in the official quarters of public servants maintained by government, were open to various forms of abuse and misuse.
One main consideration underlying the implementation of the monetization policy is the desire to reduce the pressure on public resources, arising from government's involvement in the physical provision of fringe benefits. Details in respect of the various benefits have been spelt out in relevant circulars on the issue to the Ministries and other Government establishments. Highlights of the monetization programme imply that:

• Individual pay cheques will henceforth, include all monetized benefits of staff, such as:- Housing, transportation, utilities, etc.
• Employees are thereafter responsible for all their expenses including accommodation, transport, etc.; Ministries, Extra-Ministerial Departments and Federal Government Agencies would henceforth purchase no new vehicles
• Government will no longer provide chauffeur-driven cars to its officials; rather, they will now use their personal vehicles driven by personal drivers, for private and official assignments. In addition, the use of pilot vehicles and siren by political office holders has been discontinued in Abuja; and
• Government will no longer rent or build residential apartments for any category of political office holders or public servants, except the President, Vice-President, Senate President and Deputy Senate President, the Speaker of the House of Representatives and the Deputy Speaker, as well as the Chief Justice of the Federation

Monetized Benefits

Benefits currently being monetized are:

• Residential Accommodation
• Furniture Allowance
• Utility Allowance
• Domestic Servants' Allowance
• Motor Vehicle Loan and Fuelling
• Maintenance and Transport Allowance
• Leave Grant
• Meal Subsidy
• Entertainment Allowance

Measures to Cushion the Effects of Monetization

The following steps will be taken to contain immediate adverse consequences of the programme

• Government Drivers

As a result of monetization, many Government vehicles would be sold off. Consequently, many drivers would invariably become redundant. Government, however, is not insensitive to the effect such a development may likely have on the individuals concerned and the society at large.

Hence, on the fate of excess drivers in the system, as a result of the new policy, the following steps are to be taken

• Those with relevant and adequate qualifications would be retained and redeployed appropriately
• Depending on the need, others will be deployed to drive staff buses under the Office of the Head of the Civil Service of the Federation.
• Drivers who will not be deployed will be rationalized, but would be assisted by the National Poverty Eradication Programme, or be allowed to buy one vehicle, out of the pool of excess vehicles to be boarded by the Ministries, Agencies and Extra-Ministerial Departments, subject to payment of the book value of the vehicles in accordance with extant regulations. This is meant to provide a means of self-employment to the disengaged drivers in line with government's determination to create more jobs

For more information contact:

Federal Ministry of Finance
Ministry of Finance Complex, Ahmadu Bello Way, CBD Area, Abuja
P.M.B 14 Garki, Abuja
Tel: (+234)-9- 2346291-4
www.fmf.gov.ng