Title: Influence Of Financial Capability On Public Procurement Performance Of Lower Benue River Basin Developmemnt Authority Makurdi Nigeria
Authors: Idoko Sunday Rolland Prof. Kpelai S. T. Engr. Dr. Adeke P. T.
Volume: 9
Issue: 9
Pages: 53-62
Publication Date: 2025/09/28
Abstract:
This study examined the influence of financial capability on procurement performance within Lower Benue River Basin Development Authority. Descriptive research design and survey strategy approach were adopted. The study investigated how suppliers' financial resources impact their ability to deliver goods, services and works effectively. The study is grounded in Principal-Agent Theory and Transaction Costs Theory, which provide insights into the alignment of interests between suppliers and the organization, as well as the management of transaction costs in procurement processes. The findings indicates financial capability is positive and statistically significant with procurement performance (p-value of 0.000 < 0.05) and t of 4.935 > 1.96). The study concluded that financial capability has significant positive effect on public procurement performance of Lower Benue River Basin Development Authority. This study recommended that Lower Benue River Basin Development Authority should develop a comprehensive framework for assessing suppliers' financial capabilities. This framework should include standardized criteria such as liquidity ratios, profitability metrics and cash flow analysis. Implementing a rigorous financial assessment process will help mitigate risks associated with supplier insolvency and ensure that only financially stable suppliers are awarded contracts.