Financial reforms,sustainability and performance of public sector entities in Nigeria(2009-2016)
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Date
2019
Authors
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Publisher
Management and Accounting,Obafemi Awolowo University
Abstract
The study appraised the contents of financial reforms in public sector entities and investigated the level of compliance with the financial reforms in public sector entities. It also analysed the trend of the internally generated revenue and assessed the efficiency of public sector entities in the utilisation of financial releases. Finally, the study evaluated the financial sustainability of the public sector entities in Nigeria. These were with a view to providing information on the level of compliance and the efficiency of financial reforms of public sector entities in Nigeria between 2009 and 2016.
The study employed both primary and secondary data. The population of the study for both primary and secondary analysis consists of 98 Federal Ministries, Departments and Agencies (MDAs). Two Ministries were selected for the study using purposive sampling technique; namely Ministries of Health and Education. Purposive sampling technique was used to select 50 MDAs whose data on relevant information are readily available and accessible. Primary data were sourced with the aid of structured questionnaire administered to 500 accountants and auditors in the selected MDAs. Secondary data on variables such as capital releases, overhead releases, personnel cost releases and the internally generated revenue were sourced from the Annual Warrants to the MDAs by the Federal Ministry of Finance and the Annual Reports of the Office of the Accountant General of the Federation together with the Audited Financial Statements. Data were analysed using content analysis, percentage, efficiency score, factor analysis technique, Data Envelopment Analysis (DEA) technique and Balance Score Card (BSC) method.
The results showed that the contents of the financial reforms were not home-grown and therefore did not reflect the peculiarities of Nigerian Public Sector entities’ domestic operations. The results revealed 55% compliance with the budget reform, 22% compliance level with the adoption and implementation of the International Public Sector Accounting Standards (IPSAS), 44.3% compliance with the implementation of Integrated Personnel Payroll and Information System (IPPIS) among the MDAs while the results of compliance with the Treasury Single Account recorded 60.6% and 55.5% with GIFMIS. Also, the results of the trend analysis of internally generated revenues showed that there was a spike of IGR among the MDAs in year 2016 as a result of the cash management reform. Furthermore, results showed that Decision Making Units (DMUs) under both Health and Education sectors were marginally inefficient in the utilisation of personnel cost releases with the overall average efficiency scores of 82.3% and 82.7% respectively. Also, the results also showed that the DMUs under the two sectors were distinctively inefficient in capital grants allocation with overall average efficiency scores of 53.3% and 54.5% for education and health sector respectively while the overall average efficiency scores in the utilisation of overhead cost releases showed that DMUs under health sector are more efficient than their counterparts under education with the efficiency scores 97.9% and 89.0% respectively. In summary, none of the DMUs attained a full efficiency of 100% during the research period. Lastly, the results of the findings on financial sustainability of the public sector entities revealed that MDAs under the education sector were more financially sustainable than their counterpart under health sector.
The study concluded that none of the public sector entities in Nigeria fully complied with the financial reforms and did not attain full efficiency between 2009 and 2016.
Description
xxi,376p
Keywords
Financial reforms, Public sector, Sustainability and performance, Education
Citation
Odewole,P.O(2019).Financial reforms,sustainability and performance of public sector entities in Nigeria(2009-2016).Obafemi Awolowo University