ASSESSMENT OF FINANCIAL PERFORMANCE SUSTAINABILITY INDEX BETWEEN FEDERAL HEALTH AND EDUCATIONAL INSTITUTIONS

Abstract

The study investigated the financial sustainability of public sector entities in Nigeria. The study population comprised 120 Federal Institutions. Purposive sampling was adopted in choosing two sectors-Education and Health amongst others. Taro Yamane technique was used to select the sample size of fifty (50) institutions, twenty-five (25) from each sector across the country. Data were extracted from Audited Financial Statements of the Public Sector Entities between 2009-2016 and Annual General Warrant of the sampled institutions. The analysis of the data was carried out using the Balanced Scorecard technique. The findings revealed that federal educational institutions in Nigeria operated above the basic standard of sustainability level, while their counterpart in the health sector could not attain this feat. Also, overall results show that none of the federal institutions can survive financially without external supports from the center. Therefore, the study recommended that the federal institutions should look inwards to the various means of generating enough revenue within the limits of their operations so as to meet the legitimate needs of various institutions and achieve financial sustainability. The study concluded that the aim or purpose of financial sustainability can only be a reality among federal institutions in Nigeria when all efforts are geared towards generating enough revenue by the federal institutions to cover all the operating costs and also set aside a surplus fund for capital investment out of the available revenue generated internally within the immediate operating environment of the institutions.