An Evaluation of Public Projects using Cost – Benefit Analysis (CPA)

Abstract

This study is aimed at carrying out Cost-Benefit Analysis (CBA) of public projects, as a basis of development programmes in Nigeria. The objectives are to determine the costs and benefits of public projects and evaluate the benefit/cost ratios, and some social impacts. Two public projects in Jos (Yakubu Gowon Dam, Shen and Rwang Pam Stadium) were studied. Data were collected from Plateau State Water Board and Plateau State Sports Council as well as through structured questionnaire and interviews. The period of study is 1998 to 2027. The analytical tools used included simple percentage (in the case of the social impacts; including migration, employment generation and standard of living) and Net Present Value (NPV) and Internal Rate of Return (IRR) in the case of economic costs and benefits of projects. The results showed the Yakubu Gowon Dam has N1, 880, 162, 000.00, 1. 68 and 8% NPV, Benefits/Costs ratio and IRR respectively and Rwang Pam Stadium has N86, 539,000.00, 1. 71 and 7% NPV Benefits/Costs ratio and IRR respectively. Also, the results of the analysis of the questionnaires show that public projects influence migration, employment and standard of living positively.