Analysis of Management of Revenue Generation and Accountability in Public Enterprises in Nigeria

Analysis of Management of Revenue Generation and Accountability in Public Enterprises in Nigeria.

Abstract

The Management of revenue and accountability in Nigeria telecommunication limited and power holding company of Nigeria came under focus in recent time.

The aim of this study is to investigate the effects,  and problems of management of revenue generation and accountability with the view of finding feasible solutions to these recurrent problems.

Both primary and secondary data were used in the study of selected parastatals in Nigeria. Primary data were collected through questionnaire and interview as an instrument of data collection.

Chi- square was used for the data analysis, which was needed to test the formulated hypothesis, consequently the following findings were made from the research.

The researcher envisaged the misappropriation of funds/or diversion of funds and inappropriate recording of financial statement.

Administrative and Bureaucratic bottle-neck constitute delays in payment of salaries and wages of the staff of these parastatals and this leads to poor service delivery to their customers.

The researcher identified that non incorporation of GSM and advanced technological innovation has drastically reduced the revenue profiles of these parastatals and non prompt payments of bills by the customers.

Based on the above findings the following recommendations were made: proper financial mechanism and routine auditing, checking of financial records and budgetary process should be enhanced to ensure increase in revenue base and accountability of these parastatals.

Introduction

Background of Study

Public enterprises are government business enterprises set up primarily to provide social and economic services to the general Public.

Among the enterprises, however there are those that produce mainly the core economic infrastructure called utilities.

Public utilities are of social and economic significance because they have direct impact on the standard of living of the populace and have a bearing on the international competitiveness of the economy.

They also have direct forward and backward linkages to other sectors of the  economy.

Hedrick  (2010) stated that inadequate  services provided by the dysfunctional public utilities have contributed immensely to the escalating domestic production cost, which directly undermines the nation’s competitiveness as an investment location .

In Nigeria, like most other developing countries, the ownership and control of key public utilities have virtually been the responsibility of the government since independence in 1960.

The case for government control of public utilities, such as electricity, tele-communication, gas,  water supply and  air transportation is based on the argument that basic goods  and  services needs to be provided to the citizenry at affordable prices.

References