New Public Management and Efficiency in Nigeria: Evidence from Nigerian Railway Corporation, Lagos

Abstract

This study examines the influence of New Public Management (NPM) reforms on the efficiency of public sector organizations in Nigeria, focusing on the Nigerian Railway Corporation (NRC) in Lagos. NPM, characterized by market-driven principles, decentralization, performance measurement, and public-private partnerships, has been widely adopted in public sector reforms globally to enhance efficiency and service delivery. Using the NRC as a study, the research investigates how these principles have been implemented and their impact on organizational performance. The study employs a mixed-methods approach, combining qualitative data from questionnaires from NRC officials and quantitative data from operational and financial reports. Key findings reveal that while NPM reforms, such as outsourcing and privatization, have led to some improvements in infrastructure, service delivery, and revenue generation, challenges such as inadequate funding, bureaucratic bottlenecks, and political interference continue to hinder their full effectiveness. The research concludes that although NPM reforms have potential to improve efficiency in public sector organizations like the NRC, their success depends on addressing systemic issues such as corruption, poor governance, and a lack of skilled personnel. Recommendations include enhancing regulatory frameworks, strengthening accountability mechanisms, and fostering a culture of performance-driven management to ensure sustainable improvements. This study contributes to the growing body of literature on public sector reforms in developing economies, offering insights for policymakers on optimizing the application of NPM principles in Nigeria.