Assessment of the efficiency of selected public sector entities in Nigeria

Abstract

The study examined the efficiency of Decision Making Units (DMUs) in the health sector in the personnel cost releases and utilization to the various (DMUs) by the Federal Government of Nigeria. Secondary data over a period of 2008-2016 were sourced from the Annual General Warrants from the office of the Accountant- General of the Federation, office of the Auditor-General of the federation and Audited financial statements of the Public Sector entities. Sample size of the study comprised twenty-five (25) DMUs out of the major Federal Ministries from four (4) geo-political Zones and Abuja. Data were analyzed using Data Envelopment Analysis Model (DEA). The results of the average efficiency scores from Charnes, Cooper and Rhodes Model (CCR) on the DMUs showed that the sector was marginally inefficient. The summary of the overall results therefore revealed that the DMUs under health sector performed averagely well in the utilization of personnel cost allocations with the application of both CCR and BCC models. The study recommended that a central monitoring team be created jointly by the Federal Ministry of Finance and Accountant-General’s office to ensure full utilization of personnel cost releases to the DMUs. Also, continuous assessment and periodic appraisal of the personnel cost utilization by the ministry can guarantee full efficiency in the utilization of personnel cost releases.