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. Chisquare
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.




Declaration page – – – – – – – – i
Approval page – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgment – – – – – – – – iv
Abstract – – – – – – – – – v
Table of Contents – – – – – – – – vi
List of tables – – – – – – – – ix
1.0 Introduction – – – – – – – – 1
1.1Statement of Problem – – – – – – – 3
1.2 Research Questions – – – – – – – 5
1.3 Objectives of the Study – – – – – – 6
1.4 Hypotheses – – – – – – – – 6
1.5 Significance of the Study – – – – – – 7
1.6 Scope of Study- – – – – – – – 9
1.7 Limitations of the Study – – – – – – 9
1.8 Definition of Terms Management – – – – – 10
References – – – – – – – – 12
2.1 Overview of Public Enterprises in Nigeria – – – 13
2.2 Reasons for Government Participation in Public
Enterprise/Business – – – – – – – 17
2.3 Objectives of Public Enterprises – – – – – 20
2.4 Appraisal of the Performance of Public Enterprises in Nigeria
(A Case of NEPA and NITEL) – – – – – 28
2.5 Problems of Public Enterprises in Nigeria – – – 38
2.6 Science of modern Management: Factors Affecting the Poor
Performance of Public Enterprises in NIGERIA – 55
References – – – – – – – – – 66
3.0 Research Design and Methodology – – – – 68
3.1 Research Design – – – – – – – 68
3.2 Sources of Data – – – – – – – 69
3.3 Population of the Study – – – – – – 69
3.4 Sampling Strategy – – – – – – – 67
3.5 Sample size Determinations – – – – – – 70
3.6 Questionnaire Design/Construction: – – – – 70
3.7 Validity of the Instrument Used – – – – – 71
3.8 Reliability of the Instrument Used – – – – – 71
3.9 Analysis of Data – – – – – – – 70
References – – – – – – – – – 73
4.0 Data Presentation and Analysis – – – – – 74
4.1 Data Presentation – – – – – – – 74
4.2 Hypotheses Testing – – – – – – – 87
4.3 Data Analysis – – – – – – – – 91
5.0 Summary of Findings, Conclusion
and Recommendation – – – – – – 95
5.1 Summary of Finding – – – – – – 95
5.2 Conclusion – – – – – – – – 96
5.3 Recommendations – – – – – – – 97
Bibliography – – – – – – – 103
Questionnaire – – – – – – – 107




Background to the 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 and also that government
needs to control the utilities due to their relative significance in the national
economy. The other grounds for government policy in this area include the
capital intensive nature of public utilities and the alleged inability of the private
sector to generate enough resources to invest and exploit economies of scale
associated with these establishments.
Over the years, however, the inability of successive Nigerian
governments to provide the services in an efficient manner has led to persistent
calls for reform. In response, several policy initiatives have been undertaken,
including market regulation, deregulation, liberalization and privatization. For
example, regulation was an attempt to alter the socially undesirable behavior
which the monopoly status of public enterprises has tended ‘to encourage.
However, most of the public utilities have continued to be run inefficiently at
low rate of return and to operate sub-optimally, with outmoded and
dysfunctional machinery and equipment due to lack of exposure to competition
and mismanagement of giants and subventions.
According to Hendrick (2010) , Privatization involves the sale of equities
in public enterprises to private investors with or without the loss of government
control in these organizations. It may take the form of deregulation of state
monopolies by the abrogation of legislations restricting entry into certain
economic activities. The mechanism may be by sub-contracting (i.e, operational
and maintenance contracts or enterprises contracts) , work previously
undertaken by state employee to the private sector. In the view of Estache
(2011), privatization may operate in the form of divestiture, which is the actual
sale of public assets to the private sector through public offer of shares or
private sales of assets . Government usually embark on privatization as part of
restructuring the economic base of a country to promote efficiency and free
government of the burden of fiscal imbalance brought about by government
deep involvement in business enterprise.
As would be expected, the reform programmes adopted by Nigerian
governments since SAP have raised fundamental issues regarding the ownership
structure, economic efficiency, profitability and income distribution as well as
the appropriate balance between private and public sector roles in the provision
of utility services
In most developing countries including Nigeria, government participation
in economic activity is usually significant. One of the various ways through
which the government has intervened in the Nigerian economy is through the
establishment of public enterprises. Public enterprises are statutory bodies
operating services of an economic or social character on behalf of the
Ademolokun (2011), stated that the rationales behind the establishment of
public enterprises in Nigeria are many, some of the reasons includes,
generation of revenue that will add to available national capital for the support
of development and welfare programmes, making it impossible for important
profitable enterprises to be controlled by the few individuals or groups,
organizing certain critical activities for national survival and economic stability
and providing employment opportunities. In the view of Sanda (2007) the
national Electric Power Authority (NEPA) and the Nigeria telecommunications
Limited (NITEL) are among the critical and strategic organizations whose
‘activities are expected to contribute in no small measure in our national
development. This is so, more, in the present era of technology and proper
information management system. Conversely, the operations of public
enterprises in Nigeria have of recent turned to be a very better pill for the
government that set them up and the populace they were meant to serve. The
populace are complaining of shoddy services from these organizations while the
government has identified public enterprises in Nigeria as veritable drainage
pipes for the limited resources available for the government. Consequently, the
privatization and commercialization options became very attractive to the
Report of boards of enquires on public enterprises in Nigeria including
those under this study had shown that the root cause of non-performance of
these public enterprises were poor funding and inept financial husbandry.
The main focus or problem of this study is to identify how sound
management of revenue generation and accountability in a public enterprises
can stave the collapse of our selected public enterprises — NEPA and NITEL.
The study will also give attention on how the problem of poor financial
resources management like waste of fund, fraud and diversion of fund could be
curbed in our public enterprises. The study will explore how the future
prospects of these enterprises could be enhanced through the deployment of
well trained and skilled, well remunerated and motivated workers on revenue
generation and accountability duties.
Based on the foregoing, the study seeks to provide answers to the following
research questions
1. What are those factors that affect revenue generation in Nigeria?
2. What are the modes or strategies of revenue generation in Nigeria parastatals.
3. What are those measures to be adopted by parastatals to improve revenue
generation and accountability?
4. What are those factors that hinder revenue generation and accountability in
Nigeria parastatals?
5. To what extent has non disclosure of proper accounting information affects
revenue generation and accountability in Nigeria parastatals?
The objective of this study includes,
1. To examine the sources of revenue generation of this parastatals in Nigeria.
2. To examines those problems that affect the management of revenue
generation of some of these selected parastatals in Nigeria.
3. To determine whether effective revenue management will improve the
profitability of the parastatals in Nigeria,
4. The effect of mode of disbursement of giants to parastatals.
5. To evaluate the financial control mechanism used by these selected
parastatals, in Nigeria.
In view of the problem and the objectives it seeks to achieve the
following hypotheses are formulated for this study.
(i) : Effective revenue management and accountability is not dependent on
(ii) Mode of disbursement of grants to parastatals is not significantly
affected by revenue generation and accountability in Nigeria.
(iii) Inadequate disclosure of financial information is not significantly affected
by revenue generation and accountability in Nigeria.
The significance of this study lies on the vital roles the National Electric
Power Authority (NEPA) and the Nigerian Telecommunication Limited
(NITEL) are expected to play in our national life. The major agency responsible
for generating, transmitting and distributing electricity in Nigeria is the National
Electric Power Authority (NEPA), a parastatal of the federal government under
the federal ministry of power and steel which was established by Decree No: 24
of 29th June, 1972 and vested with the primary responsibility of developing and
maintaining an efficient electricity supply to all parts of the country. NEPA is
an offshoot of the Electricity Corporation of Nigeria (ECN) which was
established in 1950. Government’s interest and investment in the electric power
utility was informed by the awareness that electricity consumption constitutes a
major yardstick for measuring the standard of living of a people. It was
considered that once adequate electricity was available, many other aspects of
economic activity would fall in place. Government has, therefore, continued to
accord high priority to adequate supply of energy in all National Development
plans and other development initiatives.
The communications sub-sector of the national economy consists of the
means of sending and receiving messages, order amongst other uses.
Communications are vital to the smooth functioning of any economy. In the
fourth National Development plan it was noted that the provision of adequate
and reliable communication services is essential for efficient operation of any
modern economy.
Unfortunately, the National Electric Power Authority (NEPA) and the
Nigerian Telecommunication Limited (NITEL) like many other public
enterprises in Nigeria have poor reputation in terms of performance. Thus, as
for back as mid 1970s, the first progress report on the second national
Development plan lamented government’s hope in this area (Communications)
have not yet been realized. The sector has then lagged behind the development
in other sectors and is beginning to constitute a drag on overall development.
According to Anaynwu et al (1997) the services of the communications subsector
of our economy are obviously epileptic.
Readers of this research will clearly understand how to eliminate or
reduce the factor that affect the efficiency in the management and accountability
in public enterprises in Nigeria. It will enable the managers of these enterprises
to exercise proper management and accountability so as to boost the revenue
generating potential of theses enterprises
We believe that the poor performance of these public enterprises charged
with the provision of communication facilities in Nigeria stemmed from poor
management of their revenue generation and accountability. We also believe
that the study of this nature will be able to highlight the revenue management
and accountability problems in the enterprises which if resolved will put the
enterprises on a sound footing.
This research focuses on ascertaining the management of revenue
generation and accountability in selected Nigerian parastatals. The study was
conducted in Enugu state among the selected parastatals of NEPA and NITEL.
Enugu state was chosen for the study because the results of the study can be
generalized to other areas bearing in mind that the nature and characteristics of
the two parastatals chosen are the same all over the entire states of the
federation. Besides there are many other parastatals in Nigeria that are known in
Enugu and other places so the researcher has decided to ‘restrict the scope of the
study to that of Enugu.
It covers a period of 26 (Twenty-six years) from 1980 to 2007 and the
major objects of the study apart from the response from the respondents is the
information recorded in official data.
Every human polity has it inherent weakness and strength. As a result,
every researcher uses to make inferences with caution. This study is not without
some inherent pit falls caused by some extraneous variables.
The limitations of the study stems from the fact that it is based on
recorded and historical information sourcing the relevant materials were not
very easy in this respect especially, records on how revenue was generated.
Also the complete response and some misleading information from the
respondents constituted another limitation of the study.
The above limitations have not affected the beauty and relevance of the
work in anyway.
(1) Management:
The term management is conceptualized in this study as the process of
achieving desired results through efficient utilization of human and materials
resources in an organization. Management entails planning, organizing,
staffing, lending and interpersonal influence and controlling enterprise resources
Bediau (2004).
Accountability is defined as a complex rational choice and use of
resources which involves responsibility of functions Imaga (2007).
(iii) Accounting according to the American institute of certified public
Accountant, accounting is the art of recording, classifying and summarizing in
significant manner and in terms of money transactions and events which are, in
part at least of a financial nature.
The American Accounting association on the other hand says accounting
is “the process of identifying, measuring and communicating economic
information to permit informed judgment and decisions by users of the
information” (AAA 1966) cited by Kodjo (2004).
(iv) Public Enterprises Ademoikekun (2011), stated that public enterprises
are public organization that emerged as a result of a government acting in
the capacity of an entrepreneur .
(v) PHCN-Power Holding Company of Nigeria which was formally known
as National Electric Power Authority (NEPA)
(vi) N1TEL-Nigerian Telecommunication Limited GOBs – Government
Owned Businesses.
Ademolekun, F. (2011), Public Enterprises and Management: Lagos, Afah
Anyanwu 0. et al (1997), The structure of Nigeria Economy Onitsha, Joanee
Educational Publishers Limited.
Bedian, S. (2004), The Practical Operation and Management Ibadan: Heinman
educational Book Limited.
Estache A, (2011), Privatization and Regulation of Transport Infrastructure in
the 1990s Business journal 1&4
Hendricks G. (2010), Economic of public utilities: London, Mc Graw
Kodjo, S. (2004), Decision Accounting for Managers:, Enugu, Oktek Nigeria
Oshisam, K. (2007), Government Accounting and Control:, Owerri, Spectum
Book Limited.
Sanda, L. (2007), Nigeria’s Financial System, Heineman publishers.



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