Effect of Public Procurement Act 2007 on Outsourcing Decisions of Public Sector Organizations in Nigeria (1999-2016)

The non-compliance to the public procurement Act 2007 extant laws governing public sector procurement, has resulted to the abuse of government resources. consequently, this study assessed the effect of public procurement Act 2007 on outsourcing decisions of public sector organizations with a focus on Nigerian Government ministries. This study adopted cross sectional analysis of Nigeria Government ministries as at 31st December 2016 for a period of eighteen years (1999-2016).This allows for comparison of the pre-government reform policy for period of nine years (1999-2007) and a post government reform policy for nine years period (2008-2016). Twenty five ministries which made up the Nigerian Government ministries were all selected for this study. Panel Data were employed in this study. The relevant data obtained were subjected to statistical analysis using E-view 9.0. correlation co-efficient, regression analysis and chow test were employed to analyze the data and testing the hypotheses that were formulated. The results of this study revealed that public procurement Act 2007 has a significant impact on outsourcing decisions of public sector organizations in Nigeria. The researcher recommends that costs and risk analysis should be carried out in order to evaluate the external capabilities with internal capabilities, so as to realize the full benefits of outsourcing in Nigeria