📘 Introduction of performance contracting improves service delivery in public sector institutions as was found out by this study. These findings go a long way to provide crucial policy inputs to public policy makers in governmental institutions in Africa. However, employee motivation components should be inculcated in the implementation of performance contracting for better results. It suggests that public institutions and especially academic and higher institutions of learning in Africa and governmental institutions should embrace performance contracting in order to improve service delivery to their clients.