CAPITAL GRANTS UTILIZATION IN THE NIGERIAN EDUCATIONAL SECTOR: DATA ENVELOPMENT ANALYSIS

Abstract

The study investigated the efficiency of capital fund utilization among federal educational institutions as Decision Making Units (DMUs) in the education sector in Nigeria. Secondary data 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. The sample size of the study comprised twenty-five (25) DMUs out of the population of fifty-five (55) from major Federal Ministries of education of four (4) geopolitical Zones and Abuja. Data were analyzed using Data Envelopment Analysis Model (DEA). The results of the average efficiency scores from both Banker, Charnes, and Cooper (BCC) and 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 the education sector performed averagely well in the utilization of capital grants allocations with the application of both CCR and BCC models. The study recommended that a central monitoring team be set up jointly by the Federal Ministry of Finance and Accountant-General’s office to ensure full utilization of capital fund releases to the DMUs. Only the continuous assessment and periodic appraisal of the capital grants utilization by the central authority can guarantee full efficiency and flatten the curve of inefficiency in the utilization of capital grant releases among the federal educational institutions in Nigeria.