Effect Of Delayed Payment Of Salaries And Wages On Employee Performance In Nigeria

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In recent years, cases of irregular payment of salaries and wages to workers in government ministries and parastatals have become a house hold issue. Hardly would nay month pass with out the media report about the difficulties being faced by workers as a result of delayed payment of their remuneration in the form of salaries, wage gratuity or pensions. At one time it will be in the federal ministry at other time it may be in the state ministries on the local government. The strategic position assumed to be occupied by financial rewards in the relationship between the workers and their organization aroused the curiosity of the researcher to such extent that he decide to find out the effect of delayed payment of salaries and wage on the performance of employees, using the federal ministry of agriculture and natural resources, Enugu branch as a case study. In carrying out the study, survey methodology was used in gathering data, after gathering and analyzing the data, it was discovered that factors such as financial impropriety, ghost workers syndrome and diversion of funds were instrumental to government decision to carryout series of identification and screening exercises and change in there accounting system which combined to cause delays in the payment of  workers salaries and wages which I turn resulted in the decrease in the volume of work performed. Based on these findings, recommendations were made on how to solve the lingering problem. They include. Training the employees especially those in account and personnel department on the modern methods and technique of carrying out their assignment, computerization of the operation at least the above two departments, effort to retain the civil service glamour and a special recurrent expenditure account for the ministries. It is hope that when these recommendations are applied, the problem of delayed payment of salaries and wages will become a thing of the past.



Title page                                                                        i

Dedication                                                                       ii

Acknowledgement                                                           iii

Abstract                                                                          iv

Table of contents                                                            v


1.1      Background of the study                                        1

1.2      Statement of the problem                                       4

1.3      Objective of study                                                   5

1.4      The significant of thy study                                    6

1.5      The research question                                            7

1.6      The scope of the study                                            7

1.7      Limitation of the study                                           8

1.8      Definitions of terms                                                10

References                                                              11



2.1   Literature review                                                    12

2.2      Money, motivation and performance                      14

2.3      The concept of inefficiency                                      17

2.4      Poor performance/Inefficiency in the Nigerian

public service                                                          21

2.5      Improving performance/efficiency in the

public service.                                                         44

2.6      Improving performances through training            45

2.7      Rewarding performance                                         48

Reference                                                                        50


Research design and methodology                         52

3.1      Research method and design                                 52

3.2      Sources of data                                                       52

3.3      Location of study                                                    53

3.4      Instrument for data collection                               53

3.5      Population for the study                                         54

3.6      Sample size and sample techniques                      55

3.7      Instrumentation                                                     58

3.8      Reliability of instrument                                         58

3.9      Instrument return rate                                          59

Reference                                                                        61


4.1      Data presentation, analysis and interpretation    62


Summary of finding, recommendation and conclusion 69

5.1      Summary of finding                                                69

5.2      Recommendations                                                  72

5.3      Conclusion                                                              77

Bibliography                                                           79







Every business is of primarily profit oriented, which I see as the objective which it set out achieves. The objective are stated or defined in their policy or mission statement.

In order to achieve the set goal, management ensures that all operations, activities of the organization conform to the established guides. The attitude of the employee leads to the achievement of the organization and the organization should ensure that employees are not created bad so that their attitude could not affect their performance.

Most of the things which affects the performance of the employee is, if there is any delay in payment f their salaries and wages.

What is performance? According to the oxford advance learner’s dictionary of current English (Homby, 1995: 860).

Performance means an action or achievement considered in relation to how useful it is in relation to workers performance refers to the action of the employees as they relate to the achievement of the set objective of the ministry. Employee performance occupies a central position in determine the success or failure of any organization.

This could be the reason why Mba, (1992:25), state that of all the resource of any organization, human resources remain the pivot on which other resource revolve and its performance determined the effectiveness and efficiency of the organization.

In the light of the above it is penitent to ask one vital question. The question remains, what is responsible for employee how performance? To answer question correctly, one has to look into the factor affecting performance e of worker and see it any of them is present in this ministry, one of the known factory militating against workers performance is poor conditions of services.

Chief among these condition is the method of payment and this is one are in which federal ministry of agriculture and natural resources has not being doing well. Reports from the workers themselves indicate that there has been irregular payment of salaries and wages and other fringe benefit to workers in recent times. In the course of this study, we attempt to find out the effect of delayed payment of wages and salaries on employee performance using Enugu branch of federal ministry of agriculture and natural resource as a case study.




For about two years now, employees of federal ministry of agriculture and natural resources Enugu branch have been facing difficulties in receiving their salaries and wages as at when due. Complaints shown that since the inception of the present democratic government, payment of salaries and other Fringe benefits to workers in this ministry has been irregular. Sometimes it is delayed up to three months and at other times at say up to five months before it is paid this situation has lingered to the extent that the workers have lost hope of ever receiving their salaries at the end of every month, as was the case some years age.

        In recent time, changes in the attitude of employees of this ministry have become noticeable. These changes include; going to work later, truancy in the office, quarrelling among workers themselves and frequent absence from duty without leave. All these could be regarded as the result of lack of motivation. The question now is, does delayed payment of workers salaries and wages affect. Their performance? If it does, what should be done to remedy the situation before it gets out of hand?



The objective of this study includes the following:

·        To find out why payment of salaries and wages are delayed in the federal ministry of agriculture and natural resource Enugu Branch.

·        To determine if this delay has affected the performance of employee in this ministries

·        To ascertain feelings of the workers

·        To suggest solution to the problem.


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Effect Of Delayed Payment Of Salaries And Wages On Employee Performance In Nigeria