The colonial government is well known for its self-sufficiency economic policy. As a result of this stringent economic policy, taking to austerity measures during periods of economic slump became its stock-in trade. One key characteristic of this measure was mass retrenchment of workers in government departments. In the Public Works Department (PWD), such ‘cost-cutting’ measure was implemented. Scholars have criticized this measure mainly from the angle that the colonial government failed to make financial sacrifices in the running of the economy. It is taken for granted that the colonial officers actually cut costs, but to the detriment of the African people. What has however not received significant attention of scholarly enquiries is the determination of how economical this economic policy sometimes turned out to be. Were there instances that move to cut costs actually led to increase in costs? Were there times that the colonial government was penny wise but pounds foolish? This paper answers in the affirmative, using the case of the reorganization of colonial Nigeria’s PWD and the retrenchment of its workers in the early 1930s. It argues that the retrenchment option may not always be the best option in managing economic challenges in corporations and other government agencies. Other viable alternatives are presented and challenge is thrown to policy makers in such agencies to think outside the box in handling economic crisis. Primary and secondary sources of information are used in this study. Primary sources include archival materials and oral interviews while secondary sources include text books, journal papers and internet materials related to the study.
Keywords: Colonial, Economic, public works department (PWD), reorganization, retrenchment
