SOCIO-ECONOMIC IMPACTS OF NEW PUBLIC MANAGEMENT APPROACH IN NIGERIA

Abstract

The adoption of New Public Management (NPM) in Nigeria aims to modernize governance, improve service delivery, and spur economic growth. NPM, grounded in market principles, emphasizes decentralization, privatization, and performance-based management to align government actions with market forces and citizen needs. However, its implementation faces hurdles such as political interference, corruption, and institutional weaknesses, hindering its effectiveness and socio-economic progress. While some sectors like healthcare and education have seen advancements, pervasive issues like corruption and infrastructure deficits persist, illustrating the complexities of reforming public administration. Theoretical frameworks including principal-agent theory and institutional theory shed light on NPM's dynamics and its effects on organizational behavior and service delivery. Case studies across various sectors underscore both successes and failures of NPM, advocating for adaptive strategies and holistic approaches that balance efficiency gains with social welfare objectives. Amid global influences and domestic challenges, ongoing efforts are essential to address systemic issues and harness NPM's potential for sustainable socio-economic development. Recommendations include bolstering institutional capacity through investment in training and infrastructure, promoting transparency and accountability to combat corruption, and integrating equity considerations into policy design to foster inclusive growth. Prioritizing social welfare alongside efficiency ensures a comprehensive approach aligning with broader social development goals.