Empirical analysis of finance mechanism for public projects delivery in Ondo state, Nigeria

Abstract

Funding is the life-blood of any project, whether private or public organizations. It may be the release of funds, the ability to spend funds or the access to funds set aside to achieve a successful project delivery. The aim of this study is to assess the financing mechanism (Budget, Grant, Loan, Public Private Partnership (PPP) and NGO’s) and some control variables on public projects finance in Ondo State, Nigeria with a view to provide a framework that will promote effective service delivery, performance and socio-economic development. Data on financing mechanism of public project funds were collected from the Ministries, Departments and Agencies(MDAs) that were directly involved in the implementation of such projects were analysed using descriptive statistics and Pearson Moment Correlation. Findings revealed that budget and grant were the main mechanisms; delays in the completion of public projects were caused by untimely release of funds, mismatch of financing mechanism to the nature of projects and excessive budgeting for capital expenditure above the available resources. Therefore, the study recommends that financing mechanisms should be considered alongside with the nature of public projects to determine the appropriate source. Also, timely and correct disbursement of funds appropriated for projects should be done to avoid inadequacy of funds, project delay and abandonment.