Effectiveness for the Value of Money on Capital Expenditure in Nigerian Public Sector

Abstract

Effectiveness relates the input or the output for the final objectives to be achieved, i.e. the outcome. The outcome is often linked to welfare or growth objectives and therefore may be influenced by multiple factors (including outputs but also exogenous 'environment' factors).The study examined the effect of value for money effectiveness and capital expenditure in the Nigerian public sector. Specifically, it investigated the extent to which value for money affects effectiveness in capital expenditure of the Nigerian Public sector.  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 effectiveness reduces economy of capital expenditure. Therefore, it is recommended that government auditors should recognize that the primary responsibility for securing value for money lies with the management of the spending agency or establishment.

Keywords: value for money, effectiveness, capital expenditure, public sector

DOI: 10.7176/RJFA/10-10-11

Publication date:May 31^st 2019