FINANCIAL REFORMS, SUSTAINABILITY AND PERFORMANCE OF PUBLIC SECTOR ENTITIES IN NIGERIA (2009 – 2016)
Loading...
Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
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