The study examined the relationship between the distribution of resources to Information Communication Technology (ICT) and the efficiency of the Public Sector in the south-western part of Nigeria. Operating performance and solvency were used as indicators for this analysis. Data was obtained from the yearly reports of the six states located in southwest Nigeria. The sample consists of the six states located in southwest Nigeria. All the data gathered was analyzed using the panel Granger Causality technique within the panel VAR framework using Eviews 13. The findings from the Granger causality test reveal that the operational performance of states in the southwest region is significantly influenced by investments in information communication technology. However, this impact is observed only when considering a significance level of 0.05. However, there is no evidence of a causal relationship from the operating performance to the investment in information communication technology of the states. The study failed to find any noteworthy granger causal connection between ICT investment and solvency. The findings of this study suggest that investing in ICT has an impact on the operational performance. It is suggested that state governments should increase their investment in ICT to improve operational efficiency, while also focusing on its correlation with other factors. The stakeholders need to give importance to incorporating ICT investment into daily operations, while the States should broaden their investment portfolios beyond just ICT to improve overall financial well-being, particularly in areas that have a direct influence on long-term stability.