Thursday, July 13, 2006

Disastrous Layoffs or Reform at Last?

Monday saw the beginning of massive civil service layoffs by the Federal Government of Nigeria. In a move widely criticized by the Nigeria Labour Congress (NLC) and affiliated trade unions, the government plans to sack 33,000 of its 160,000 federal civil servants from now through October. Malam Nasir el-Rufai, Federal Capital Territory Minister and Chair of the Public Service Reform Committee, has stated that the workers getting the axe "are people who in the first place should not have found their way into the service." This is the largest and most ambitious move yet by the PSRC, which is part of President Olusegun Obasanjo's government reform efforts.

Depending on whom you listen to, these firings are either the necessary first step in creating a functioning bureaucracy and eliminating corruption in civil service hirings, or they are the precipitators of a massive economic crisis in a country that is already ranked as the 13th poorest nation in the world. The government contends that the civil service has been bloated by decades of patronage hirings and phantom workers, fictitious names added to the payroll to fatten the wallets of federal officials. The NLC, which represents 29 Nigerian labor unions, has a different take. The fear is that adding 33,000 workers to the ranks of the country's unemployed will have serious economic and social ramifications.

It is hard to believe that thousands of families will not be adversely affected by these layoffs, but the government's actions are necessary and worth the risk. Despite being the most ardent critic of the cutbacks, the NLC need only look to its 2006 "New Year Statement" to find that it supports the government's actions in principle. The statement applauds President Obasanjo and the Economic and Financial Crimes Commission (EFCC) for their "unprecedented progress in the anti-corruption war" and calls for "more thorough, result-oriented and comprehensive measures against corruption at all levels and in all spheres of life." While this particular measure does go against the NLC's other stated goal of lowering unemployment levels by creating new jobs, the leaders of the Congress must surely recognize that the most effective way to attract new investment in Nigerian industry is to create an efficient bureaucracy and a functioning government infrastructure. In the long run, by creating a civil service that has the capacity to grant promotions or raises to workers, as well as letters of dismissal, based solely on ability and performance, these layoffs will be a significant step toward lessening the negative economic impact of Nigeria’s corruption.

Related articles and URLs (of the cut and paste variety):

Nigeria Labour Congress' 2006 New Year Statement:

http://www.nlcng.org/a%20new%20and%20better%20nigeria%20is%20possible.htm

Nigerian Newspaper Articles:

http://allafrica.com/stories/200607101033.html
http://allafrica.com/stories/200607101305.html
http://allafrica.com/stories/200607070545.html
http://allafrica.com/stories/200607070151.html

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