This report offers a comparative analysis of the Nigerian government’s long-standing challenges in curbing ghost workers within its civil service structure versus the recent success of the United States Department of Government Efficiency in identifying and terminating wasteful federal contracts.

Credit: @DOGE via x.com.

The analysis highlights how systemic inefficiencies, lack of data transparency, and weak accountability structures have hindered Nigeria’s progress, while advanced tracking technologies and real-time analytics have enabled the U.S. to make rapid, impactful reforms.

Nigeria: Persistent Ghost Worker Challenge
Despite repeated efforts across successive administrations, Nigeria continues to grapple with the scourge of ghost workers—nonexistent employees drawing salaries from public payroll systems. Several attempts to clean the system through IPPIS (Integrated Personnel and Payroll Information System) and biometric verification have only yielded incremental results.

Key Issues:
Data manipulation and insider collusion: Payroll systems are often infiltrated by corrupt insiders who insert ghost names.

Lack of real-time auditing tools: Most ministries, departments, and agencies (MDAs) still operate outdated HR databases without integration.

Weak enforcement: Identified cases rarely lead to prosecution or refund of misappropriated salaries.

Fragmented systems: States and federal agencies often run on different platforms with no unified central database.

According to the Nigerian Ministry of Finance in 2024, over 70,000 ghost workers were removed from federal payrolls—yet this barely scratches the surface given the size and opacity of Nigeria’s public sector workforce.

United States: Strategic Termination of Wasteful Spending
In contrast, the U.S. Department of Government Efficiency, over just the past three days, has demonstrated an effective, proactive approach to public sector efficiency. Utilizing advanced tracking tools, performance analytics, and automated contract review systems, the department identified and terminated 80 wasteful contracts with a ceiling value of $831 million, generating savings of $436 million.

Notable Terminated Contract:
A $265,000 U.S. Department of Transportation (DoT) contract for “planning and environment workshop and roundtable discussion” was deemed excessive and terminated, reflecting the agency’s attention to even moderately sized expenditures.

Key Strengths of U.S. Mechanism:
AI-assisted auditing: Algorithms flag redundant, overlapping, or underperforming contracts.

Centralized federal procurement platform: Allows cross-agency review and benchmarking.

Rapid response units: Deployed to investigate and terminate contracts within 72 hours.

Transparency laws: Agencies are required to report expenditures publicly, discouraging abuse.

Comparative Insights

CriteriaNigeria’s MechanismU.S. Mechanism
Monitoring ToolsOutdated, semi-digitalAI-integrated, real-time audit systems
Data TransparencyLow, often manually managedHigh, publicly accessible contract data
Response TimeWeeks to monthsHours to days
Enforcement MechanismWeak prosecution and refund structureSwift administrative actions
Impact of Reform (3 days)Minimal change in ghost worker numbers80 contracts canceled, \$436M saved

Recommendations for Nigeria
Adopt Unified Payroll Platform: Integrate state and federal databases under one digital HR/payroll ecosystem.

Leverage AI and Data Analytics: Introduce machine learning tools to audit government salaries and contracts.

Transparency Portal: Create a centralized public portal listing all federal employment and contract records.

Legislate Consequences: Enforce stricter penalties for those who insert, approve, or benefit from ghost worker schemes.

Set Up Rapid Response Task Force: Similar to the U.S. model, Nigeria can create an independent unit with a mandate to act within days.

The contrast between Nigeria’s slow-moving, fragmented efforts to eliminate ghost workers and the U.S.’s agile, tech-driven approach to cutting wasteful contracts highlights the critical role of digital transparency and institutional will. As Nigeria continues to struggle with payroll integrity, adapting best practices from models like the U.S. Department of Government Efficiency could help stem fiscal leakages and boost public confidence.

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