SOURCE:

Faculty: Management Sciences
Department: Accountancy

CONTRIBUTORS:

Nwadighoha, C. E.
Osisioma, B. C.
Okoye, E. I.

ABSTRACT:

The public service has been confronted with a lot of inefficiencies, corruption, excessive bureau critic bottlenecks, complacency, mismanagement of resources and inability to embrace transparency and accountability in the outsourcing decisions of public sector organizations in Nigeria. Consequently, this study assessed the effect of Public Procurement Act 2007 on outsourcing decisions of public sector organizations with a focus on Nigerian Government Ministries. This study adopted cross-sectional analysis of Nigerian Government Ministries as at 31st December 2015, for a period of eighteen years (1998-2015). This allows for comparison of the pre government reform policy for a period of nine years (1998-2006) and post government reform policy for nine years period (2007-2015) among the government ministries considered in this study. Twenty five ministries which made up the Nigerian Government Ministries were all selected for this study. Panel Data were employed in this study. The researcher made use of Ex-post facto research design in conducting the research. The study made use of secondary data obtained from Central Bank of Nigeria (CBN) statistical bulletin, Federal Ministry of Finance and Budget Office of the Federation as at 31st December 2015. The relevant data obtained were subjected to statistical analysis using E-view 9.0. Correlation co-efficient, regression analysis and Chow test were employed to analyse the data that were collected and testing the hypotheses that were formulated. The results of this study revealed that Public Procurement Act 2007 has a significant impact on outsourcing decisions of public sector organizations in Nigeria. The researcher recommends that cost analysis and risk analysis should be carried out in order to evaluate the external capabilities with internal capabilities, so as to realize the full benefits of outsourcing in Nigeria.