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The public spending crisis: a case study of Nigeria public sector


  • Mukoro Dick Oluku

    (British Association of Accountants and Auditors(FBAA))

  • Omankhanlen Alex Ehimare

    (Departament of Banking and Finance Covenant University,Ota)


The objective of this paper is to discuss the differences in the concept and measurement of efficiency between the private and public sectors, stressing that the lessons from the private sector can only be transferred to the public sector if there is a proper awareness of these issues and constrains imposed by considerations of equity. In evaluating policy initiatives, the governments method for all the talk of “rolling back the public sector” and opposition companies of “cuts,” the public expenditure/EDP ration went up steadily during Obasanjo’s first term. However deep the divisions over what ought to be in the public sector, it is of paramount importance to all concerned that the resources are managed effectively. The paper argued that an attempt to instill into the public sector the cost consciousness of the best parts of the private sector is wholly admirable. In conclusion, the severity of the impending budgetary crises will make the search for greater efficiency in the public sector of paramount importance. The paper recommends that the common theme of all these cases in that an appropriate set of relative prices can encourage resources to be minimized. very great care has to be taken when introducing piecemeal charging in order to ensure that this does not have side-effects at odds with programme objectives.

Suggested Citation

  • Mukoro Dick Oluku & Omankhanlen Alex Ehimare, 2011. "The public spending crisis: a case study of Nigeria public sector," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 14(1), pages 7-13, December.
  • Handle: RePEc:but:manage:v:14:y:2011:i:1:p:7-13

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