EFFECT OF PROCUREMENT PLANNING ON COST EFFECTIVENESS OF LOWER BENUE RIVER BASIN DEVELOPMENT AUTHORITY MAKURDI, NIGERIA

Abstract

This study investigated the Effect of Procurement Planning on Cost Effectiveness in Lower Benue River Basin Development Authority, Benue State, Nigeria. The survey study was anchored on the contingency theory with a target population of 150 and a sample of 109 respondents was drawn from six departments’ in Lower Benue River Basin Development Authority in Makurdi. Data was collected using structural questionnaire and was analyzed using descriptive and inferential statistics. The t-test from regression analysis (Statistical Package for Social Science version 24.0) was used to test the hypotheses. Findings showed that regulatory compliance (r = .974, t = 7.113), contract management (r = .900, t = 7.200), training capacity building (r = .999, t = 9.509), electronic procurement (r = .976, t = 4.404) had significant effect on cost effectiveness in Lower Benue River Basin Development Authority Makurdi Benue State. The study concluded that procurement planning (regulatory compliances and contract management) is an effective and viable tool for cost effectiveness (in terms of operational efficiency, competitive advantage).This suggested that procurement planning adoption has potential for enhancing cost effectiveness. The study recommended among other things that Lower Benue River Basin Development Authority Management should ensure regulatory compliance all through their procurement processes to benefit cost effectiveness in the organization and federal Government respectively.

Key Words:   Procurement Planning, Cost effectiveness