ASSESSING THE IMPACT OF MONETIZATION OF BENEFITS POLICY ON EMPLOYEE MOTIVATION AND WORKFORCE PRODUCTIVITY IN THE PUBLIC SECTOR. A CASE STUDY OF LAFIA LOCAL GOVERNMENT COUNCIL

ABSTRACT This study investigates the influence of the monetization of benefits policy on workforce productivity in Lafia Local Government. The monetization policy, introduced as part of Nigeria’s public sector reforms, was designed to reduce government expenditure by converting non-cash benefits such as housing, vehicles, and utilities into monetary allowances. Although the policy aimed to promote efficiency, accountability, and cost-effectiveness, its effect on employee motivation and productivity remains contested. Using Lafia Local Government as a case study, the research adopts a survey design and collects primary data through structured questionnaires administered to staff across departments. Data were analyzed using descriptive statistics and inferential methods to examine the relationship between monetized benefits and indicators of workforce productivity, including job satisfaction, commitment, and service delivery. The findings show that the policy enhanced employees’ financial autonomy and reduced government spending, but also led to challenges such as poor financial management, misuse of funds, and inadequate long-term welfare provisions. Results further indicate that employees who perceive the allowances as fair and sufficient demonstrate higher productivity and commitment, while those who view them as inadequate show lower motivation and performance. The study concludes that the monetization of benefits policy has a mixed impact on workforce productivity in Lafia Local Government. It recommends regular review of allowances to reflect economic realities, financial literacy training for staff, and the introduction of complementary non-monetary incentives such as health coverage and professional development. These measures will help align the policy with its objective of enhancing efficiency and improving public service delivery.