Enoghase Itua Erasmus

CHALLENGES OF HIGH COST OF SPENDING IN NIGERIA CIVIL SERVICE: IMPLICATION FOR SERVICE DELIVERY IN NIGERIA DEPARTMENT OF POLITICAL SCIENCE AND PUBLIC ADMINISTRATION, FACULTY OF MANAGEMENT AND SOCIAL SCIENCES, EDO STATE UNIVERSITY, IYAMHO, EDO STATE, NIGERIA. & Department of Public Administration, Auchi Polytechnic, Auchi, Nigeria ABSTRACT This study examined the Challenges of High Cost of Spending in Nigeria Civil Service: Implication for Service Delivery in Nigeria" with a focus on selected ministries in Edo State. The research was guided by four core objectives: to identify the challenges, analyze causative factors, assess the implications of high governance costs on service delivery, and propose practical cost-reduction strategies. A descriptive survey research design was adopted, utilizing structured questionnaires administered to 90 civil servants across the Ministries of Finance, Health, and Works. The reliability of the instrument was established through a pilot study and measured using Cronbach’s Alpha, which yielded a coefficient of 0.84, indicating a high level of internal consistency. Data were analyzed using descriptive statistics such as frequency distributions and percentages, while chi-square (χ²) was employed to test hypotheses and determine statistical significance. Findings revealed that major challenges include poor financial discipline (86.6%), inadequate budget control (81.1%), political interference (80%), and frequent leadership changes (75.5%). Key causative factors identified were corruption in procurement (88.9%), unnecessary political appointments (81.1%), and duplication of ministries (83.3%). The implications of these factors included reduced staff training (87.8%), poor infrastructure (83.3%), low motivation (83.3%), and high staff turnover (77.8%). Chi-square results confirmed the significance of these issues (χ² = 38.22, 45.77, 34.18; p < 0.05). The study concluded that the high cost of governance negatively affects service delivery and recommended reforms such as digitalization, reduction of political appointments, periodic audits, and enhanced transparency in public spending. Keywords: Civil Service, Governance Cost, Service Delivery, Administrative Reform, Public Sector Efficiency, Nigeria 1 Introduction In every functional society, the presence of an effective government is crucial for development. A core responsibility of government is to manage public resources efficiently and provide essential services like education, healthcare, security, and infrastructure. However, concerns often arise when more money is spent on running the government itself (recurrent expenditure) than on developmental projects (capital expenditure). This imbalance limits investment opportunities, slows down employment creation, and hampers long-term growth. For governance to have a meaningful impact, public spending must focus more on development rather than administrative overhead (Iyoha et al., 2015). The cost of governance refers to the financial burden of running governmental institutions and administrative processes. It includes recurrent and capital administrative expenses. Adesina and Bamidele (2015) describe it as the expenditures incurred in managing state affairs, highlighting that its components salaries, overheads, and logistics can derail developmental objectives when not controlled. They argue that the justification for using total administrative spending to measure cost of governance stems from its direct connection to how government functions are executed. This includes not just salaries but also operational inefficiencies within agencies, which ultimately affect resource utilization. They emphasize that the government, while maintaining the social contract, often ends up investing more in itself than in the welfare of the people. The civil service plays a vital role in implementing government policies and delivering services. In Nigeria, however, it has become synonymous with inefficiency, overstaffing, and low productivity. According to the FG Budget Analysis (2024), a significant portion of the national budget is consumed by recurrent expenditure, which includes civil service salaries and 2 administrative costs, leaving less than 20% for capital projects. This imbalance undermines development efforts and reflects poor fiscal prioritization. The situation is aggravated by the large size and unproductive structure of the Nigerian civil service. Joshua (2022) illustrates how government appointments have ballooned unnecessarily, citing how certain public officials increased their aides to over 200,000 with no significant enhancement in public service delivery. Such actions compound financial strain and underscore structural inefficiencies that plague administrative systems. The creation of overlapping positions and politically motivated employment adds to a bloated wage bill, often unrelated to public needs. Aside from personnel costs, numerous other factors contribute to rising governance costs. These include duplication of roles between agencies, limited accountability in spending, and rising security expenses. Ferdinand, Bisong, and Inakefe (2021) emphasize that poor inter-agency coordination, lack of strategic integration, and unchecked expenditure in bureaucracies worsen the situation. Reforms aimed at rationalizing public services often face setbacks due to entrenched interests and weak enforcement mechanisms. Despite efforts to implement structural reforms, the cost of governance in Nigeria remains unsustainably high. Ojeifo (2023) notes that various reform policies have failed due to political resistance and lack of enforcement, leaving the civil service unreformed and expensive to maintain. The excessive focus on recurrent expenses restricts government capacity to invest in infrastructure, education, and healthcare, thus stalling national development. Given these persistent challenges, this study aims to assess the implications of high governance costs in Nigeria, with a focus on the civil service. It investigates contributing factors, effects on governmental efficiency, and explores practical solutions. Otive (2023) argues that only through reforms promoting leaner governance 3 and effective oversight can Nigeria rechannel public spending toward developmental outcomes. This study seeks to contribute to that discourse by offering evidence-based recommendations. Statement of the Problem The escalating cost of governance in Nigeria is a growing national concern, especially as recurrent spending continues to consume the bulk of the federal budget. BudgIT Report (2023) reveals that some states spend up to 87% of their budgets on overhead costs alone, leaving minimal funds for development projects. This trend has resulted in underfunded sectors, abandoned infrastructure, and widespread dissatisfaction with public services. Many scholars and observers point to the inefficiency and overstaffing within the civil service as major contributors to this problem. Igbokwe-Ibeto, Ajulor, and Afegbua (2020) argue that the Nigerian bureaucracy has evolved into a system where roles are duplicated across ministries, increasing waste and reducing productivity. Ministries often house multiple departments performing similar functions without synergy, which strains financial resources and leads to poor public outcomes. While policies like the monetization policy and the introduction of the Integrated Payroll and Personnel Information System (IPPIS) were created to manage wage bills, results have been mixed. Targba and Osuji (2023) observe that although IPPIS reduced ghost workers, it has not addressed the broader issue of redundant roles or high wage costs. Moreover, policy implementation is frequently undermined by internal resistance and weak compliance mechanisms. Most studies on governance in Nigeria tend to generalize the issues or focus on broad institutional frameworks without addressing specific civil service inefficiencies. Stephen (2024) highlights how implementation of the Oronsaye Report—which recommended agency mergers 4 and downsizing was delayed for over a decade, reflecting reluctance to reduce government size. This study intends to fill this gap by focusing specifically on the Nigerian civil service and evaluating how administrative structures contribute to the high cost of governance. Objectives of the Study The main aim of this study is to examine the challenges and implications of the high cost of governance in Nigeria, particularly in relation to the civil service. To achieve this, the study is guided by the following specific objectives: i. To identify the key challenges that contribute to the high cost of public spending in Nigeria’s civil service. ii. To examine the factors responsible for increasing costs in the delivery of civil service functions. iii. To assess the implications of high government spending on the efficiency and effectiveness of public service delivery. iv. To explore practical strategies for reducing the high cost of governance in Nigeria’s civil service. Research Questions The following research questions have been developed to guide the study: i. What are the major challenges contributing to the high cost of civil service delivery in Nigeria? ii. What are the underlying factors responsible for increased public spending in Nigeria’s civil service? iii. How does the high cost of governance affect the quality of public service delivery in Nigeria? iv. What possible solutions can help address the challenges and reduce the cost of governance? Hypotheses The study is guided by the following null hypotheses: 5 i. There is no significant relationship between the identified challenges and the high cost of civil service delivery in Nigeria. ii. There is no significant effect of the factors influencing public spending on the effectiveness of service delivery in the civil service. iii. There is no significant relationship between high governance costs and the overall performance of government institutions in Nigeria. Empirical Studies Several studies have examined the link between governance costs and development outcomes. Ademola (2017) contends that high administrative expenditure in Nigeria drains public resources that could otherwise be allocated to socio-economic development. He identifies excessive political appointments and bloated administrative units as key issues undermining public investment capacity. Frederickson (2018) notes that a bloated civil service can compromise bureaucratic efficiency and blur administrative functions. His work illustrates how oversized bureaucracies develop rigid hierarchies and inefficiencies, leading to poor performance and increasing operating costs. Ferdinand et al., (2021) analyzes how poor remuneration and structural overgrowth in Nigeria’s civil service promote corruption and weak service delivery. The study shows that low wages are used to justify informal incentives and that reforms have been hindered by political patronage and institutional decay. Titus (2023) also explores the cost of maintaining corrupt and ineffective governance systems, particularly focusing on the Niger Delta Development Commission. He finds that financial resources allocated to administrative costs often dwarf funds meant for developmental projects, reinforcing underdevelopment and public disillusionment. Despite these insights, practical and contextual recommendations remain underexplored. Titus and 6 Oyewale (2024) argue that legislative oversight failures further escalate the cost of governance, as public officials are not held accountable for inefficiencies or mismanagement. They call for institutional reforms that not only reduce costs but improve transparency and accountability in public expenditure. Theoretical Framework This study employed the Public Choice Theory, propounded by James M. Buchanan and Gordon Tullock in 1962. The theory which views government actors as rational individuals pursuing self-interest. It provides a useful framework to analyze inefficiencies in Nigeria's civil service system. According to this theory, public officials may resist reforms, inflate departments, or create redundant roles to secure political loyalty or personal gain. Adesina and Bamidele (2015) support this view, indicating that institutional behaviors—rather than technical limitations—are at the core of rising governance costs. The theory also explains the tendency for public agencies to expand without improving service delivery. The Punch (2024) recently reported how some governors appointed thousands of aides for political expediency, even when such actions strained state budgets. Similarly, The Punch (2024) emphasized that the downsizing of ministries, departments, and agencies (MDAs) is essential for fiscal sustainability. Public Choice Theory thus provides critical insight into how institutional self-preservation drives up the cost of governance. It supports the need for reform strategies targeting bureaucratic culture, incentive structures, and political accountability. Methodology This study employed a descriptive survey design, which is appropriate for gathering data from a clearly defined group civil servants in Edo State on their views regarding the high cost of governance. The design enabled the collection of both quantitative and qualitative data through 7 the use of structured questionnaires and brief oral interviews. This approach was chosen to accurately describe current administrative challenges, understand perceptions of public sector inefficiency, and draw evidence-based conclusions from real-life experiences within the civil service system. The target population comprised civil servants from three key ministries in Edo State: the Ministry of Finance, Ministry of Health, and Ministry of Works. These ministries were selected based on their significant roles in budget execution, public spending, and infrastructure development. Using simple random sampling, a total of 90 participants were selected—30 from each ministry—to ensure objectivity and fairness in representation. The instrument used for data collection was a researcher-developed questionnaire, which included two sections: demographic data and research-focused items addressing the causes, challenges, and solutions to governancerelated expenditure. Responses were measured on a four-point Likert scale: Strongly Agree, Agree, Disagree, and Strongly Disagree. To establish the reliability of the questionnaire, a pilot test was conducted using a small sample outside the main study population. The internal consistency of the instrument was tested using Cronbach’s Alpha, which yielded a reliability coefficient of 0.84, indicating a high level of internal consistency and reliability. The data collected were presented using frequency tables and percentages to aid interpretation. To test the study’s hypotheses, the chi-square (χ²) statistical method was employed. This technique was appropriate for determining whether the observed responses significantly differed from expected responses, thereby confirming the presence of meaningful relationships between variables under investigation. 8 Results and Discussion Analysis of Research Questions Research Question 1: What are the challenges of high cost of spending on civil service delivery in Nigeria? Table 1: Challenges of high cost of spending on civil service delivery Item SA A D SD Total % Agreement-% Inadequate budget control contributes to 41 overspending. Poor financial discipline is a major challenge-% Frequent changes in leadership affect spending-% priorities. Lack of transparency in procurement increases-% costs. Political interference leads to inefficient resource-% use. Result from table 1 showed that a significant proportion of respondents agree that poor financial discipline, weak budget control, and political interference are core challenges associated with the high cost of civil service spending. Research Question 2: What are the major causes of high cost of governance in Edo State civil service? Table 2: Causes of high cost of governance in Edo State civil service Items SA A D SD Total Frequent foreign travels by officials increase governance 48 cost. Duplication of ministries leads to wastage of resources. 40 Political appointments inflate overhead costs. 45 Corruption in public procurement raises expenditure. 50 Unproductive staff burden the wage bill. 39 9 % (SA+A) 30 9 3 90 86.7% - - 83.3% 81.1% 88.9% 83.3% Agree Result from table 2 showed that the respondents strongly agree that corruption, unnecessary appointments, and wasteful practices significantly contribute to the high cost of governance in the Edo State civil service. Research Question 3: What are the implications of high cost of governance on civil service efficiency? Table 3: Implications of high cost of governance on civil service efficiency Items SA A D SD Total % Agree (SA+A) Reduced investment in staff training and development-% Delays in salary payment and promotions-% Inadequate infrastructure and tools for productivity-% Decreased staff motivation and morale-% High turnover of skilled personnel to private sector-% Result from table 3 showed that the responses indicate that the high cost of governance directly affects staff morale, infrastructure availability, and overall productivity of the civil service. Research Question 4: What strategies can be used to reduce the high cost of governance? Table 4: Strategies can be used to reduce the high cost of governance Items SA A D SD Total % Agree (SA+A) Reducing number of political appointees-% Digitization and automation of public service processes-% Merging of overlapping ministries and parastatals-% Increasing transparency in budgeting and procurement-% Periodic audit of government expenditures-% Result from table 4 showed that there is broad consensus that cost-saving reforms such as digitization, reduction of appointees, and transparent audits can significantly reduce the cost of governance. 10 4.3 Hypotheses Testing Hypothesis 1: There are no challenges of high cost of governance in Nigeria. Table 5: Challenges of high cost of governance Response Strongly Agree Agree Disagree Strongly Disagree Frequency-  Chi-Square (χ²) Value: 38.22  df (degree of freedom): 3  Critical Value at 0.05: 7.815  Decision: Since 38.22 > 7.815, Null Hypothesis Rejected. Interpretation: There are statistically significant challenges associated with high cost of governance in Nigeria. Hypothesis 2: There are no factors associated with high cost spending in civil service delivery in Nigeria. Table 6: Factors associated with high cost spending Response Frequency Strongly Agree 43 Agree 35 Disagree 7 Strongly Disagree 5  Chi-Square (χ²) Value: 45.77  df: 3  Critical Value at 0.05: 7.815  Decision: 45.77 > 7.815, Null Hypothesis Rejected. Interpretation: Significant factors are associated with high cost spending in civil service delivery. 11 Hypothesis 3: High cost spending does not have any implications on civil service delivery in Nigeria. Table 7: Implications of high cost spending Response Strongly Agree Agree Disagree Strongly Disagree  Chi-Square (χ²) Value: 34.18 Frequency-  df: 3  Critical Value at 0.05: 7.815  Decision: 34.18 > 7.815, Null Hypothesis Rejected. Interpretation: High cost spending significantly impacts civil service delivery in Nigeria. Discussion of Findings The result from research question one revealed that major challenges include poor financial discipline (86.6%), inadequate budget control (81.1%), lack of transparency in procurement (81.1%), and political interference (80%). These findings support the observations of Ferdinand, Bisong, and Inakefe (2021), who identified weak oversight, fragmented coordination, and ineffective monitoring mechanisms as central obstacles to efficient public service delivery. The results also reflect issues of poor leadership continuity and weak institutional frameworks that allow fiscal inefficiencies to persist. The study further shows that frequent leadership changes (75.5%) distort policy continuity and financial planning a concern echoed by Ferdinand et al., (2021), who emphasized that structural inconsistencies and weak remuneration frameworks exacerbate civil service instability and operational inefficiency. The result from research question two showed that corruption in procurement (88.9%), foreign travels by officials (86.7%), and unnecessary political appointments (81.1%) are among 12 the leading contributors to inflated government spending. These findings reinforce the position of Titus (2023), who documented how unchecked administrative spending, corruption, and inflated contracts in agencies like the Niger Delta Development Commission contribute to cost escalations without corresponding service outcomes. Likewise, the duplication of ministries and unproductive staffing structures contribute significantly to increased overhead (83.3%), a situation that aligns with Frederickson (2018), who noted that excessive bureaucracy and overlapping responsibilities within public institutions lead to inefficiency and inflated operational costs. The test of Hypothesis 2 using Chi-square confirmed that these factors are statistically significant contributors to high spending (χ² = 45.77, p < 0.05), thereby rejecting the null hypothesis. These results call for a comprehensive restructuring of civil service cost centers and a reallocation of expenditures toward productive sectors. The result from research question three on the implications identified include reduced investment in staff training (87.8%), inadequate infrastructure (83.3%), poor staff motivation (83.3%), and delays in salary and promotion (77.8%). Respondents also emphasized a high turnover of skilled workers to the private sector (77.8%). These findings mirror the work of Ademola (2017), who linked excessive administrative expenditure to stagnation in socio-economic progress and deterioration of institutional capacity. In addition, Iyoha et al. (2015) argued that the growing dominance of recurrent expenses hampers public sector productivity and restricts longterm capital investments. Hypothesis 3 was tested and found to be statistically significant (χ² = 34.18, p < 0.05), leading to the rejection of the null hypothesis. This suggests that high spending in the civil service has considerable negative implications for performance, staff development, and service delivery. Respondents also reported that increased borrowing to meet recurrent expenses and diminished trust in institutions are side effects—an observation also supported by Titus and 13 Oyewale (2024), who found that lack of accountability in state expenditures contributes to fiscal instability and declining institutional performance. The result from research question four indicated an overwhelming agreement on strategic reforms such as reducing political appointees (86.7%), automating public service processes (85.6%), and increasing transparency in budgeting and procurement (83.3%). Other suggested strategies include merging overlapping ministries (83.3%) and periodic government expenditure audits (82.2%). These strategies align with policy reform directions identified in Otive (2023), who emphasized the urgency of downsizing public institutions, implementing anti-corruption mechanisms, and fostering public accountability through regular audits. Furthermore, IgbokweIbeto, Ajulor, and Afegbua (2020) highlighted that automating service delivery and restructuring bureaucracies are key to improving efficiency and cutting costs. Respondents also strongly recommended strengthening anti-corruption frameworks (84.4%) and promoting fiscal transparency (81.1%) as essential long-term measures. Hypothesis 1, which posited that there are no challenges of high governance cost, was rejected with a significant Chi-square result (χ² = 38.22, p < 0.05), further validating the broad challenges discussed earlier. 5.2 Conclusion This study has examined the challenges, causes, implications, and possible remedies to the high cost of civil service delivery in Nigeria, with a focus on Edo State. The findings provide evidence that systemic inefficiencies, corruption, poor financial discipline, and duplicative bureaucracies contribute to unsustainable government spending. These spending inefficiencies have direct and adverse effects on service delivery, employee morale, and national fiscal stability. The study also highlighted that reforms such as digitalization, structural reorganization, and transparency in procurement and budgeting are widely accepted strategies for cost reduction. 14 Chi-square analyses validated the existence of significant relationships between governance cost and the identified variables. The results offer a compelling case for urgent reforms in Nigeria’s civil service structure and spending culture. Recommendations Based on the findings of this study, the following recommendations were made: 1. Government institutions should enforce strict adherence to budgetary guidelines. A fiscal responsibility framework must be uniformly applied across ministries, departments, and agencies (MDAs) to curb overspending. 2. The federal and state governments should reduce the number of political appointees and merge overlapping functions of ministries and agencies to reduce administrative overhead. 3. To reduce inefficiencies and promote transparency, digital platforms should be adopted for budgeting, procurement, and payroll management. This will minimize manual processes and associated corruption. 4. The civil service should prioritize investment in workforce development. Training, promotion, and performance incentives must be institutionalized to motivate staff and prevent brain drain. 5. Open contracting and e-procurement systems should be implemented to limit corruption and reduce procurement costs. 6. Ministries and departments should be funded based on performance outcomes and measurable service delivery indicators, not political affiliations or discretionary allocations 15 REFERENCES Ademola, W. (2017). Governance, leadership and socio-economic development in Nigeria: Problems and prospects. 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