Value For Money Efficiency On Capital Expenditure Of The Nigerian Public Sector: A Study Of Public Sector Organisations
Udeh Francis N Ph.D
Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka
Irokalibe Ijioma Blessing
Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka
Keywords: value for money, efficiency, capital expenditure
Abstract
The efficiency concept of value of money incorporates the idea of the production possibility frontier, which indicates feasible output levels given the scale of operations. The greater the output for a given input or the lower the input for a given output, the more efficient the activity is. Productivity, by comparison, is simply the ratio of outputs produced to input used. The study examines the degree which value for money promotes efficiency in capital expenditure of the Nigerian Public sector. Specifically, it investigated the extent to which the value for money influences efficiency of capital expenditure. Primary data were elicited from structured questionnaires retrieved from two hundred and ninety-three respondents across different Anambra state ministries. The binary logistic regression was used to analyze the data and take decisions on the formulated hypotheses. The findings of this study revealed that value for money application reduces economy of capital expenditure. It was not found to affect efficiency and effectiveness however. Therefore, it is recommended the executive arm of the government should mandate Office of the Auditor-General to ensure that value for money audit is specially carried out on all project embarked on by the Ministries, Departments, Parastatals and Agencies