EFFICIENCY PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN NIGERIA
EFFICIENCY PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN NIGERIA

Summary/Abstract: Research background: The study examined the technical efficiency of quoted manufacturing companies in Nigeria selected at random. This study adopted Data Envelopment Analysis (DEA) with input-oriented variables of inventory, while the output variable is the revenue of the selected quoted manufacturing firms. Purpose of the article: The study analyzed technical efficiency of thirty-one (31) selected manufacturing firms for the period 2013 to 2018 using the input and output oriented data envelopment analysis (DEA) approach. Methods: The study findings shows that three firms account for 9% of the sampled firms, this indicates these firms operates at a positive level of efficiency. The result break down shows that twenty-eight (representing 91%) of the firms during the period operates at a low efficiency level. This was indicated and made more evident by the presence of recession occasioned in the period under review ending in 2016. Findings & Value added: The study concluded that quoted manufacturing firms in Nigeria are not operating at optimal level of mix variables, this is as a result of high input costs then worsened by low patronage, rising inflation, increase in exchange rate, and stifling government policies. It is recommended that the firms that are operating at decreasing efficient levels needs to do the needful by scaling down their input and output variables, while those at the efficiency level needs to scale up their input and output variables. Also, government should do the needful in order to mitigate the challenges facing these manufacturing sector.

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