ENHANCING FINANCIAL ACCOUNTABILITY AND TRANSPARENCY IN NIGERIAN PUBLIC SECTOR (A case study of selected Public Sector Organizations in Enugu State)
ABSTRACT
The Nigerian public sectors like their counterparts in the private sector have neglected fundamental principles that should be adhered to in ensuring accountability and transparency in their various sectors. This research work is aimed at looking at the various ways in which the Accounting officers: – Chief Executives, Accountants, Auditors and in fact the Financial controllers in our country help to enhance financial accountability and transparency in the public sector. A framework for understanding the relationships between the major financial administrators and their subordinates in Public sector financial accountability and transparency was established. A questionnaire, interviews and research methodology was adopted for this research. Each question was examined as a whole to obtain an understanding of the opinions and perspectives of the respondents from each individual, organization as to what are considered to be the important factors in this study. Then, chi-square was used to test the five hypothesis propounded. The results suggested avenues of enhancing financial accountability and Transparency in the public sector. The major findings from the survey are: (1) Public Financial Managers do not enhance the implementation of financial accountability and transparency in the Nigerian public sector. (2) Financial accountability and transparency is not yet improved in the Nigerian public sector and. (3) Public financial managers do not adhere to the laid down rules for the management of accountability and transparency in the Nigerian public sector. Finally the research concluded with the following major recommendations: The Nigerian value system must be changed so as to stamp out dishonesty and the use of double standard in handling government matters and that Regular workshops, seminars and trainings should be organized on regular basis for those public accountants who rose through the ranks. This will make them fit into the accounting duties properly.
CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND OF THE STUDY
Grand corruption is a cancer that has eaten deep into the fabric of the Nigerian polity. The general global perception about graft in Nigeria is that it is a pervasive phenomenon. It is generally acknowledged that corruption and corrupt practices are endemic and systemic in both the public and private sectors of Nigeria. Corruption has surely had debilitating effects on the country as it has had elsewhere. It is encountered in the routine processes of governance both in public and private sectors, and it pollutes the business environment generally. It equally undermines the integrity of government and public institutions.
Nigerian poverty in the midst of plenteous natural resources is as a result of bad leadership, Leadership without skill and character. In formal democracy bad leadership is to a long extent a product of flawed electoral system. So an incredible electoral system is the beginning of poor leadership. Thus good governance is identified as a critical ingredient of political stability. However at the heart of good governance i.e. transparent governance is accountability. That is the idea that the governed retain the real opportunity to know what the governors do and call them to order when they derail. A country’s journey towards good governance in reality is measured by how much the management of the public policy is open to the scrutiny of the people the people are always disconnected with the leaders because of the institutional deficiencies of liberal democracy. The culture of accountability and its institutions are strong protection against conflicts and instability.
Nigeria like the rest of African countries is caught in cusps of many conflicts including conflicts over political power. The real nature of political conflicts in these societies is that the norms and procedures for attributing between varying claims to power are incapable of restraining the tendency the overall system. Conflicts over access to political power are compounded by the oil economy which has created the resource course as a content of corruption, means that most politicians are interested in access to political powers as a pretext for access to the resources tap, weak accountability framework therefore makes it easy for leaders to gain personal control of public fund and utilize same for personal needs. The main problem with Democracy in Nigeria is lack of accountability and transparency, both cannot be easily separated.
From a relatively mild manifestation at Nigeria’s independence, this cancer grew rapidly at an alarming rate through the Second Republic (1979-1983). During the epoch of military misrule, it became institutionalized and assaulted every facet of Nigerian socio-political life. In the words of Gboyega (1996:3), “it was as if the government existed so that corruption might thrive”. Corruption have accounted for the distortion and diversion of government welfare programmes and undermined the goals and vision of development. Indeed, it has continued to undermine the effectiveness of the political process, especially the capacity of the elections management body, the Independent National Electoral Commission (INEC) to achieve and institutionalize free and fair elections.
Accountability is a concept deeply rooted in political power and democracy. It is the bridge linking the People or the electorate with the Executive to whom enormous power has been entrusted. Accountability is the public servants report card on how public money is spent and used on behalf of the people. It therefore goes without saying that the notion of accountability and good governance are very connected. In fact, the first evidence of bad governance is the absence of accountability. In other words, it means saying what you mean, meaning what you say and doing what you say you are going to do – taking responsibility for words and actions.
Transparency and accountability are critical for the efficient functioning of a modern economy and for fostering social well-being. In most societies, many powers are delegated to public authorities. Some assurance must then be provided to the delegators that is, society at large that this transfer of power is not only effective, but also not abused. Transparency ensures that information is available that can be used to measure the authorities’ performance and to guard against any possible misuse of powers. In that sense, transparency serves to achieve accountability, which means that authorities can be held responsible for their actions. Without transparency and accountability, trust will be lacking between a government and those whom it governs. The result would be social instability and an environment that is less than conducive to economic growth.
Accountability is therefore the requirement that officials answer to stakeholders and publics on the disposal of their powers and duties, act and criticisms or requirement made of them and accept some responsibility.
Accountability is an ethical concept – It concerns proper behavior, and it deals with the responsibility of individuals and organizations for their actions towards other people and agencies. The concept is used in practical settings, notably in describing arrangements for governance and management in public services and private organizations. The term is often used synonymously with concepts of transparency, liability, answerability and other ideas associated with the expectation of account giving.
Accountability has two (2) forms. There is Vertical Accountability – which is the accountability of government to the voting public through the ballot box. This is closely allied with the capacity of the electorate to remove a government that fails to account to them or deliver services. It assumes the existence of a political culture where the individuals vote counts. The other form of accountability is Horizontal Accountability – which is the accountability of government institutions to anti-corruption and anti-graft agencies. It also includes the accountability of the public sector to statutory auditing agencies; oversight committees of the state assemblies and the National Assembly; human rights agencies and the media. From the foregoing, it is clear accountability is basically a feature of democratic governance. It is characterized by answerability and openness.
Accountability requires a system to monitor and control the performance of government officers and organizations particularly in relation to quality inefficiencies and abuse of resources. Financial accountability and transparency are interrelated concepts and mutually reinforcing a more effective approach to address the challenge of corruption in Nigeria.
According to MSN Encarta, Transparency is a state or quality of being transparent.  Transparency in its broadest term literally means something that can be seen through. Therefore when we talk of             Transparency in terms of government spending, we are referring to government at all levels opening its books to the public so that tax payers can see exactly where the money is going or being spent. It also ensures that the citizens’ funds are spent efficiently by making all decisions in the open and on the record.
Transparency means that citizens can review and question policy makers’ decisions, examine document root out inefficiency and hold officials accountable for the way revenue are spent.
Therefore, transparency is characterized by the following – a disclosure system; access to information; openness to public participation; absence of undue secrecy; readiness to face and accommodate legitimate scrutiny and humility on the part of Executive office holders through readiness to answer questions raised by citizens. Transparency is impossible or very difficult where freedom of or access to public information is not guaranteed in law or statute.
 
The issue of financial accountability and transparency in Nigeria is one that cannot be readily             grossed over, since they constitute pivotal features of a respectable government. Besides grand corruption that has eaten deep into the fabric of the Nigerian economy. It is generally acknowledged that corruption and corrupt practices are endemic and systematic fraud, corruption and the likes have seriously affected the level of accountability and transparency in Nigeria. The cry of the majority of the common man had been, “What is the problem of the financial management system” that government officials can defraud the local, state or national treasury and not held accountable until their regimes have ceased to exist.
In the recent years, fraudulent activities, economic mismanagement, corruption, lack of accountability and transparency have been the bane of the economy. More so, it is evidenced and undoubted that crimes such as embezzlement, over invoicing, cyber crimes, fraudulent and over production and diversion of product, currency counterfeiting, illegal capital transfer, illegal currency manipulation, large scale banking and corporate crime have now dented Nigerians international image and tagged her a financial terrorist consequent upon this the federal government adopted a strategy to extinguish completely its further perpetration.
In 2003, President Olusegun Obasanjo established the Economic and Financial Crimes Commission (EFCC) prior to the promulgation in 2002 by an act of the National Assembly. The EFCC acts as law enforcement Agency to investigate financial crimes such as advance fraud (419 frauds) and money laundering. The EFCC investigates people in all sectors who appear to be living above their means and is empowered to investigate and prosecute money laundering and other financial crimes. The EFCC was later amended in 2004 to sanitize the Nigerian Economic environment by enforcing all economic and financial crime laws. In June 2009, the Senate Committee on Drugs, Narcotics and anti-corruption moved to amend the act by setting up the Independence Corrupt practices Commission (ICPC). Both the EFCC and ICPC was to act independent of the Executives
Corruption and looting of public treasury was a major problem in the public sector accounting. Report from office of statistics Lagos show that our accounting records are balanced in arrears and our financial records are hardly balanced daily, weekly, quarterly, half-yearly and yearly basis as appropriate. This was evidenced by Chief Olusegun Obasanjo during his first maiden address to the nation immediately he was sworn-in as the President of the federal republic of Nigeria on the 29^th day of May 1999. He stressed that accountability, probity and transparency has suffered a lot set-back especially in the civil service. He therefore suggested that some of the best ways to eliminate this ill in the Nigerian public service are;

• The effective use of public accounts;
• The use of effective legislation;
• The effective implementation of government policies and programmes;
• The effective use of auditors of the federal republic of Nigeria among others.

He therefore concluded by saying “when we consider how the public accounting and auditing can grow and develop, we are concerned not only with helping the public accountant or the auditor fill their position, but also with helping the whole economy and the organizational structure grow and develop” (Obasanjo). The concept should therefore make it wise for us to look more closely at the relationship between Nigeria and other countries of the world. And for Nigeria to be recognized as a corrupt-free economy, the accounting profession must be in a position to balance the financial records of the federal government daily, weekly, monthly, quarterly, half yearly or yearly basis. This is because members of the public and the international community want to see results, see the economy grow and the professions produce the final output.
 

• Statement of the Problem:

Public sector accounting in a corrupt society is a very big problem to the economy of the nation. This is because the financial records do not reflect the true and fair view of the accounting records. There are lots of collaborations in the utilization of public funds to the extent that funds allocated through the budget are not properly utilized. The annual for the public (government) income and expenditure are at times late. Whatever is the position with timeless of delivery, these budget are never reviewed in time and deviations are not investigated to ensure prompt remedial action which will re-direct and re-orientate plans towards budgeted levels.
Another shortcoming is the threat to continually of production of qualified accountants who will replace older retiring hands. This systems form a number of factors like inadequate infrastructures (for example, training materials, computers, library facilities etc) necessary for such programmes. This point drives to a large extent from the very poor and unrealistic remuneration paid to the practicing accountant in form of salary.
Public accountants are placed on government determined salary scales, unlike their professional chartered counterparts whose fees for auditing and other professional services rendered are self determined. The implication of the forgoing deliberation is that while a professional body like Institute of Chartered Accountant and its various programmes aimed at monitoring more closely the curriculum of their counter-parts in the government employment are poorly taken care of.
Another shortcoming is the quota system in the federal service. The quota system has introduced mediocre and unethical practices in the accounting profession. In a bid to fill in vacant positions in the federal civil services, most of the unqualified personnel (mainly from certain ethnic group of the country) are employed to the detriment of the job, hence giving loopholes for embezzlement and financial misappropriation. Merits were thrown to the winds.
In fact, meritocracy has given way to mediocrity. All this, helped the administrators and some members of the society to look down on the accountants as mere “house helps” and “rubber stamp” in the system.
 

• The Objective of the Study:

The principal objective of this research is targeted towards determining the ways of enhancing financial accountability and transparency in the Nigerian Public Sector. The objectives of the study can be sub divided as stated below:

1. To determine the degree of implementation of financial accountability and transparency in the public sector especially in the federal civil service.
2. To determine the best way to improve on financial accountability, and transparency in Nigeria Public Sector.
3. To determine the actual role of the public financial managers in the enhancement of financial accountability, and transparency in Nigeria Public Sector.
4. To determine whether public accountant in collaboration with their chief executives utilize judiciously all the allocations made from the budget.
5. To supervise the extent at which the financial controllers or Supervisors checkmate the Executives who the funds are allotted to.

• Research Questions:

The research question is poised to provide answers to the following questions.

1. Do the financial managers enhance the implementation of financial accountability and transparency in the public sector?
2. Are their ways of improvement in financial accountability and transparency in the Nigerian public sector?
3. Do public financial managers adhere strictly to the laid down rules for the management of accountability and transparency in the Nigerian public sector?
4. Do public financial managers and their Executives utilize judiciously all the allocations made from the budget?
5. Do the Supervisors adequately checkmate the activities of the financial managers and the Executives?

• Research Hypothesis:

HO_{1 –}    Public Financial Managers do not enhance the implementation of financial accountability and transparency in the Nigerian public sector.
HO_{2 –}    financial accountability and transparency is not yet improved in the Nigerian public sector.
HO_{3 –}    Public financial managers do not adhere to the laid down rules for the management of accountability and transparency in the Nigerian public sector.
HO_{4 –}    Public Financial Managers and their Executives do not utilize judiciously all the allocations made from the budget.
HO_{5 –}    The Financial Controllers or the Supervisors do not adequately checkmate the activities of the financial managers and the Executives.
 
 

• Significance of the Study:

The significance of this study can be viewed from two major standpoints – practical and academic

1. Practical Significance:

This study will be of immense help to the policy makers in the federal civil service of Nigeria who will be able to know and assert the adequate role of the public accountant in the service with a view to showing up the programmes of financial accountability and transparency of the government administration.
The policy makers should see the public accountants as playing the role of a coach who exposes the skills and tactics and allows the players to play the game. This is because in everything an individual or a group of individuals in varying professions, do, there is a reason and purpose. For example, in a private organization this reason or purpose is referred to as an objective or goal. Therefore, government (public service) whose realm of operation is popularly referred to as the public sector has as its objective the governance of her people. This implies the tremendous responsibility to grannies resources and allocates same towards fostering economic growth and improving the standard of living of the citizens of the nation. Again government is empowered by the laws of the land (constitution) to engage in contractual arrangements for the purpose of increasing the resources available to her in order to meet the requirements of governance, since it holds the wealth of her nation in trust for that nation. To this extent, the government of a nation owes her citizens the duty to account for the stewardship in the effective disposition of the resources entrusted to her (This is accountability).
For the government or the public sector to discharge her responsibility or stewardship effectively, there is the need to maintain proper records of the value of all programmes, activities and services, synthesize and analyze the effect of government financial transaction, classify, summarize and communicate such information for purposes of future decision-making or assessment of performance.
 
 

1. b) Academic Significance

This study, its extensive literature review and recommendations it will contribute immensely to students, future researchers and academicians knowledge on the issue of enhancing financial accountability and transparency in the Nigerian Public Sector.
 

• Scope of the Study:

This study attempts to establish (i) whether the directors of departments utilize judiciously all the allocations made available to them or not; and (ii) to examine the impact of public accountants in the implementation of financial accountability and transparency in the public Sector.
Sequel to this the researcher shall investigate some Federal Ministries and Parastatals in Enugu State. Five of such Federal Ministries and Parastatals were selected and the financial accountability and transparencies of their Executives and financial officers will be investigated.
 

• Limitation of the Study:

As part of the research experience by researchers all over the globe, certain limitations and unforeseen problems hindered the effective and smooth collection of data for the work. These in specific terms include lack of time and difficulties in obtaining needed data relevant to the subject matter from top management; inadequate working fund; respondents’ poor altitude to questionnaire.
Time constraint: Time was really a big constraint in carrying out this research work as the researcher had to combine the collection of materials for the study with official government work, family and religious commitments other academic and social activities.
Financial constraints: The finance needed to carry out this work is too much and cannot be afforded by the student. Thus these to an extent hampered the success of this work.
Respondents Attitude: The Respondents as it is well known are not willing to divulge important information. Tracking of the Executives in their offices and their willingness to grant interviews due to their tight schedules all contributed.
 

• Definition of Terms:

Corruption: This is the use of entrusted powers for private gain. This is the most common crime in the public service and takes many forms. For instance, a public official asking for, accepting bribe before carrying out any activity or asking for gratification after rendering a service and a public official diverting the ownership of government property. Other forms of corrupt activities include embezzlement, nepotism, bribery/kickbacks, extortion, illicit enrichment, questionable links between government agencies and private business etc. The perpetration of corruption in the public service is facilitated through the use of money, valuable goods or gifts, favours, promises etc.
The incidence of corruption is primarily a function of greed facilitated on the strength of the incentives, range and scale of opportunities, availability of means and the risks of punishment.
Corruption is propelled by bad governance where controls are weak and decision-making is opaque, arbitrary and lacking in accountability.
 
Embezzlement: This is the fraudulent appropriation by a person to his own use of property or money entrusted to that person’s care but owned by someone else. For instance, a clerk or cashier can embezzle money from his employer; a public officer can embezzle funds from the treasury. In embezzlement, an actual conversion must occur and the embezzler must have had the right to possess the item, and used that position of trust to convert the property.
Embezzlement sometimes involves falsification of records in order to conceal the theft. Embezzlement becomes much easier if one person is responsible for keeping track of billing, receiving and recording payments as well as managing accounts. Some of the most common methods of embezzlement are the under-reporting of income (especially for income generating public institutions) and the creation of ghost employees.
 
Bribery: This is the offering, giving, receiving or soliciting of something of value for the purpose of influencing the action of an official in the discharge of his or her public or legal duties. A bribe can consist of immediate cash or of personal favours, a promise of later payment, or anything else the recipient views as valuable.
 
Money Laundering: This is money that is made through illegal activities which needs to be placed into the Banking system so that it can be integrated into the economy and be made legitimate. Criminals have developed endless array of schemes in the process of converting ill gotten wealth from “dirty” to “clean” funds and the banks is in the potential for complicity and violation of money laundering prohibition requirements.
 
Fraud: The crime of deceiving somebody in order to collect money or goods illegally. It also means a person who pretends to have gifts and abilities, skills etc that he or she does not really have to receive others.
 
Investigation: – This means a special kind of examination of accounts or records carried on by an investigator with the predefined purpose according to the necessity of the situation (Chike Nwoha,:303, 33).
 
EFCC: This is an acronym for Economic and Financial Crimes Commission. It is a commission created by an act of the National assembly in 2002 and was amended in 2004. It is charged with the responsibility of investigating, and enforcement of crime, all laws against economic and financial crimes in its entire ramification. The commission is also designates to Nigeria Financial Intelligent Unit (NIFU) It is an autonomous central national agency, domiciled within EFCC with the responsibility of receiving and analyzing financial information

EFFECTIVENESS OF THE MAJOR STAKEHOLDERS IN ENSURING TIMELY IMPLEMENTATION OF INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS) IN NIGERIA
 ABSTRACT
This study evaluated the effectiveness of accountants, and appraised the effectiveness of auditors in the implementation of IFRS in Nigeria. It also, determined the effectiveness of Financial Reporting Council of Nigeria (FRC) in monitoring the implementation of IFRS in Nigeria and evaluated the effectiveness of the accounting professional bodies (ICAN and ANAN) in facilitating the implementation of IFRS in Nigeria. The study has population size of 850, out of which a sample size of 369 was realized using Zigmund formular (1979). The instruments used for data collection were questionnaire and interview guide. A total of 369 copies of the questionnaire were distributed while 300 (81%) copies were returned and 69 (19%) were not returned. The survey research design was adopted for the study. Four hypotheses were tested using z-test, simple linear regression and chi-square statistical tools. The findings indicated that accountants have been effective in facilitating the implementation of IFRS in Nigeria, auditors have significantly facilitated the implementation of IFRS in Nigeria, the financial reporting council of Nigeria FRC has significantly monitored the implementation of IFRS in Nigeria, and professional accounting bodies (ICAN and ANAN) have significantly facilitated the implementation of the IFRS in Nigeria. The study recommended that accountants should be encouraged through provision of training grants for improved quality service delivery and update of knowledge as regards changes in accounting practice. Nigerian financial institutional infrastructure should be strengthened for enhanced effective delivery of their mandate. While FRC should be provided for in the national annual budget for effective implementation of her policies and programs, ICAN and ANAN should create a more enabling platform to increase the number of professionals they produced. From the results, it can be concluded that stakeholders are actively participating in timely and effective implementation of IFRS in Nigeria which account for the success recorded so far among listed companies in Nigeria who to greater extent have met the deadline for first time implementation of IFRS and date for first IFRS financial report.

EFFECTIVENESS OF TAXATION AS AN INSTRUMENT FOR THE CONTROL OF MONEY
IN CIRCULATION
 
ABSTRACT
This study  examined  the Effectiveness of Taxation As An Instrument  For the Control of Money in Circulation.  Taxation  which is  an instrument used by the government to levy individuals and corporations directly or indirectly as a source of getting money for the maintenance of the state, maintaining economy stability, boasting aggregate investment, reduce inflation amongst others is adjudged to be the major source of public revenue.  The problem of the study is that people see taxation as a tool for the exploitation of the ordinary man by the government and  has generated a great deal of sentiments among taxpayers, some of who argue that the government unjustifiably rid them of investments and consumption income.  The main objectives of the study are to examine the important role of taxation in an economy, to evaluate the various types and classes of taxation, to identify the major problems of taxation, and to determine the impact of taxation on money in circulation.  The research questions and hypotheses are structured in line with the objectives of the study.  The research is survey and empirical in nature.  The main source of data for the study is secondary data. The instrument used for data collection include  data on  petroleum profit tax (PPT) and company income tax (CIT), paid by quoted companies in Nigeria spanning the period of 1999 to 2007 which was available.  The average money in circulation (AMC) are also obtained for each year, and are classified according to the total tax collected (PPT + CIT) = Total tax collected (TTC).  Data were analysed through the statistical tools  of   simple  Linear regression  and correlation analysis.  Therefore, the correlation coefficient  between the  Total Tax Collected (TTC)  and the Average Money in Circulation  (AMC) shows that there is a positive linear relationship.  The study found that the chief source of revenue for most industrialized countries is the income tax. The income tax is levied on both individual personal incomes and corporations profit.  The work concludes that   taxation is a veritable instrument used by government authorities to regulate and collect sums of money from both natural and legal persons for the benefit of the whole citizens. On the other hand, taxes reduces a tax payers wealth (money) and this causes the individuals to re-arrange his/her economic priorities. The study recommends that  more generalized rates should  be enforced to reduce tax avoidance and tax evasion. This will broaden the base and reduce the tax burden on a few individuals and firms.  The study suggests  that further work  be carried out on this particular topic with emphasis on  the areas which are not covered by this work.
CHAPTER ONE
INTRODUCTION
 
1.1     BACKGROUND OF THE STUDY
Taxation which is a major source of public revenue has been variously defined to include an obligatory transfer of money from the taxpayer to a public authority (government). Odinge (2003:18) notes that the payment of tax unlike payment of price for acquisition of something of a material value implies the settlement of tax payer’s civic liability to the government.
 
Other definition of taxation include, a non-punitive but yet compulsory levy imposed by government on the property and incomes of individuals and corporations. According to Ajakaiye  (1999:56) a tax is a form of levy imposed by the state on people, corporate bodies or goods and services.
 
Government action in tax collection is however justifiable in the sense that government performs at least the following functions for the welfare of its citizens.

• Provision of education, water supply, Postal and transportation services.
• Internal security which includes the prohibition of secessional tendencies.
• Prevention of external aggression e.g. protection of the country’s boarders.
• Set and maintain public infrastructure.
• Organize and execute state projects etc.

Ajayi (2002:18), notes that   taxation is an instrument of fiscal policy by the government. In this regard, taxation may be defined as an instrument through which government achieves its desired goals by the variation of taxes in its fiscal policy. In other words, taxation can be defined as an instrument used by the government to levy individuals and corporations directly or indirectly as a source of getting money for the maintenance of the state, maintaining economy stability, boasting aggregate investment, reduce inflation amongst others.
 
As an instrument of fiscal policy, the government uses taxation to check the quantity of money in circulation. Apart from using the imposition of taxes to cover its expenditure, the government also uses it  to reduce inflation and/or stimulate economic growth (Anyanwuocha, 2001:30).
 
Furthermore, taxation can be said to be a means of transferring resources and income (money) from the private sector in order to achieve or accomplish some of the nation’s economic and social goals, control money in circulation, the result of which will lead to a higher standard of living through the promotion of traditional basic government services in education, public health and transportation; the avoidance of excess or limited money in circulation (Lewis, 1984:26).
 

• STATEMENT OF PROBLEM

Taxation which is one of the major sources of revenue for all governments come back to the tax payers in form of social amenities.   The payment of tax has generated a great deal of sentiments among taxpayer, some of who argue that the government unjustifiably rid them of investments and consumption income. Others see taxation as a tool for the exploitation of the ordinary man by the government. Patriots regard taxation as an inevitable tool of nationhood without which the provision of social amenities and national survival can hardly be achieved.
 
There is also another view that taxation lowers the investment capacity and growth of corporate entitles if the company’s profit before tax is compared to the after tax profits which are available either for distribution as dividends to shareholders or re-investment for the expansion/growth of the company. The introduction of minimum tax for companies that do not have assessable profit have also been widely criticised as being depletion on the company’s capital. The argument is based on the fact the since the company has no assessable profit, the percentage payments on the turn-over, gross profit, net assets and share capital is inappropriate.
 
One responsibility that the Government owes her citizens is the maintenance of a stabilized economy. Most countries’ economics (especially third world like Nigeria) are faced with either shortage or surplus funds in circulation especially during deflation and inflationary periods.
 
Inflation which refers to a continuous and persistent rise in the level of prices or fall in the value of money  as the case for deflation,  means a continuous and persistent fall in the general price level rise in the value of money are two conditions that are very differential to the well being of the economy. Taxation acts as an effective instrument to arrest these situations to ensure a stabilized economy which is necessary for business survival and growth as well as ensuring a good standard of living.
The tax system is one of the most powerful levies available to the government to  change the state of the economy for better. As such, government increases or reduces the purchasing ability of the people and working through the multiplier which can reduce the disposable income and investments.
 
However, if an economy like that  of Nigeria is going through a period of inflation, the government can make budget surplus by increasing taxes amongst other things. Moreover, the impact of the tax will be a reduction on individual disposable income and aggregate spending policy through a necessary source of governments’ revenue.
 
If otherwise taxation is neglected in an effort to control money in circulation, certain problems will be evident – fixed income earners’ real income will likely fall. During inflation what money can buy like  real income falls. Those who suffer most are fixed income receivers e.g. pensioners, salary earners, landlords etc.
 
Inflation redistributes income from workers and peasants who are assumed to have low saving capacity to capitalists and entrepreneurs who presumably have high savings and investment abilities. The implication of this is that the former becomes poorer while the later gets richer. This is not an ideal situation. Inflationary trends are detrimental to wage earners especially during the initial stages when wages do not rise in the same proportion as price increased of goods and services.  During inflationary period, creditors stands to loose. This is because of the continuous loss of value of money and as such lending is discouraged.  Infact the major problem centres on inflation and deflation.
 
1.3     OBJECTIVE OF THE STUDY;
The main objective of this research is to evaluate the effectiveness of taxation in controlling money in circulation.  This tend to suggest that there are other sub objectives of this study which includes the following:
 

1. To examine the importance of taxation in an economy.
2. To evaluate the various types and classes of taxation.
3. To assess the impact of Total Tax Collected (TTC) on

Average Money in Circulation (AMC).

4. To determine the relationship between TTC and AMC.

 
1.4     RESEARCH QUESTIONS
For the purpose of this study, the following research questions are formulated as follows:

1. What are the importance of taxation in an economy?
2. What are the various types and classes of taxation?
3. What is the impact of Total Tax Collected (TTC) on Average Money in Circulation (AMC)?

4. What is the relationship between TTC and AMC?

 
1.5     RESEARCH HYPOTHESIS
The following null and alternate hypotheses are formulated for the study as follows:

1. H_o: There is no significant impact of Total Tax Collected (TTC) on

Average Money in Circulation (AMC).
 
H₁:     There is  significant impact of Total Tax Collected (TTC) on
Average Money in Circulation (AMC).
 
 

2. H_o: There is no relationship between TTC and AMC.

 
H₁:     There is significant relationship between TTC and AMC.
 
1.6     SIGNIFICANCE OF THE STUDY
 
This study is important because it will create awareness of the importance and effectiveness of taxation in controlling money in circulation. It will also reveal the extent of revenue accrued to the government by way of taxation. It will also show the redistribution of income among different income earners through the means of taxation in order to address the issue of tax burden as related to income.
 
This will enlighten corporate firms and individuals on the enormous role played by the Federal Government in the area of maintaining stability and steady growth of commerce and industry, provision of infrastructure, necessary environment and even entrepreneurship for the proper functioning and growth of businesses,  provision of law and order and maintenance of peaceful atmosphere by way of defence etc., all of which depends on huge outlay of fund. Hence, the taxpayers will begin to appreciate tax payment as and when due.
 
The writer hopes that this research work will stimulate interest in this area of study by  many  researchers in Nigeria.   Hence, to other users like future
 
researchers, fellow students and even the government this will improve their theoretical and practical knowledge about taxation as it relates to control of money in circulation. Its findings, recommendations and conclusions will be of immense assistance to those interested in making policy decision on taxation matters.
 
1.7     SCOPE  OF THE STUDY
 
The scope of the study covers the effectiveness of taxation as an instrument for the control of money in circulation in Nigeria, with a case study of the Board of Internal  Revenue, Enugu State.
 
1.8     LIMITATIONS OF THE STUDY
An exhaustive and more detailed research on this topic would have been carried out but for some obvious constraints of time,   finance and attitude of respondents.
Time Constraint:  Due to shortness and limited time frame for the completion of the programme, the researchers had the problem of time in covering wider scope and gathering more information.
Finance:   Inadequate finance affected this work greatly as it limited the amount and quantity of information which the researcher would have accessed and gathered for this work.
Attitude of Respondents:  Some of the respondents showed negative attitude towards the study because they felt that they have no financial benefit.
 
 
1.9     DEFINITION OF TERMS
 
Some technical terms used in the study are defined in this section as stated
 
below:
 
Taxation:  The Oxford Advanced Learners Dictionary  (1984:886) describes taxation as a sum of money to be paid by citizens according to income.
 
Company Income Tax (CIT):   This is a levy imposed on the profits of business organizations or body corporate.  It is a tax on the accounting profit of a company.
 
Petroleum Profit Tax (PPT):  This is a direct tax levied annually for each accounting period of 12 months by oil companies.
 
Total Tax Collected (TTC):  This is the addition of company income tax and the petroleum Profit Tax over a given period of time.
 
Average Money in Circulation (AMC):  This is the sum of total tax collected as divided by the number of years involved, that is,  the sample size.
 
Money:  This is any object generally accepted as a medium of exchange and for the settlement of debts.

 
EFFECTIVENESS OF FINANCIAL CONTROL ESTABLISHMENTS IN PROMOTING PUBLIC SECTOR ACCOUNTABILITY IN ENUGU STATE, NIGERIA
 
ABSTRACT
The study evaluated the “effectiveness of financial control establishments in promoting public sector accountability in of Enugu State, Nigeria”. This study was aimed to evaluate the significance of public budget as an instrument of legislative control over public finance, to determine whether the reliance of the Auditor-General on internal audit work influences his audit work and to ascertain the extent of legislative oversight function on state audit performance in Enugu State, Nigeria. To achieve these objectives, the study adopted descriptive survey design. Formal financial control Establishments (Enugu State Ministry of Finance, Office of the Auditor-General of Enugu State and Enugu State House of Assembly) were used for the study. The population of the study was 195 respondents which comprised of treasury staff of Enugu State Ministry of Finance; core Auditors from the Office of the Auditor-General of Enugu State and Public Accounts Committee Members of Enugu State House of Assembly. Primary data was used for the study. Data were collected through questionnaire research instrument on a five-pointLikert scale. The reliability of the instrument of the study which was 0.72, was determined using Spearman ranking. The validity of the instrument was measured using content validity, and this was done by three public sector experts from both the academia and public sector. Data collected were analysed using simple linear regression and Pearson product moment correlation, at 5% probability level of significance with the aid of SPSS (v.22). The findings revealed that: Thepublic budget is a significant instrument of Legislative control over public finance (r = .649, p < 0.05). in Enugu State, Nigeria. Performance of the Auditor-General is significantly dependent on internal audit work (r = .955, p < 0.05). There is a statistically significant relationship between State audit performance andlegislative financial oversight (r =.83, p < 0.05). It recommended that the legislature should be more transparent, accountable and competent in the performance of their oversight activities if they are to improve public budget control and accountability. The office of the Auditor-General and Internal Audit Unit in Enugu State, Nigeria should be further strengthened by way of being adequately staffed, equipped, funded and independent to make them more effective institutional mechanisms for financial control and accountability. Lastly, the 1999 Constitution should be amended to give atime frame for the Public Accounts Committee of House of Assembly to consider and report back to the whole house matters arising from the audit reports of the Auditor-General in order to improve his performance.
TABLE OF CONTENTS
Title Page                                                                                                                    i
Declaration                                                                                                                  ii
Approval                                                                                                                     iii
Dedication                                                                                                                  iv
Acknowledgements                                                                                                    v
Abstract                                                                                                                      vi
List of tables                                                                                                               x
 
 
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study                                                                                     1

• Statement of the Problem                                                             2
• Objectives of the Study 4
• Research questions 5
• Research Hypotheses 5
• Significance of the Research 6

1.7 Scope of the Study                                                                                               6

• Limitations of the Study 7

1.9 Operational Definition of Terms                                                                           7
REFERENCES                                                                                                          10
CHAPTER TWO
REVIEW OF RELATED LITERATURE

• Conceptual Review 12

2.1.1    The Concept of Accountability                                                                      12

• Process Based Accountability 13
• Performance Based Accountability 13
• Accountability in Public Sector 13

• The Concept of Financial Control 14

2.1.2.1Internal Control Mechanism                                                                            16
2.1.3    Concept of Government Accounting                                                                         18
2.1.3.1 The Basis of Government Accounts                                                               19
2.1.3.1.1 The Cash Basis of Government Accounts                                                   19
2.1.3.1.2 The Accrual Basis of Accounting                                                                21
2.1.3.1.3 The Commitment or Encumbrance or Obligation Basis of Accounting      22
2.1.4    Concept of Budget and Budgetary control                                                    22
2.1.4.1 Budgeting Techniques                                                                                    23
2.1.4.1 Benefits of Budgeting                                                                                                24
2.1.4.2 Purposes of Budget                                                                                        24
2.1.5    The Concept of Legislature                                                                           25
2.1.5.1 Functions of the Legislature under the Nigerian Constitution                       26
2.1.6     Audit of Government Funds                                                                         28
2.1.6.1 Definitions and Evolution of Audit                                                               28
2.1.6.2 Types of Audit                                                                                                29
2.1.6.3 The Need for an Audit                                                                                   29
2.1.6.4 Qualities Generally Required of Auditors                                                      30
2.1.6.5 Constitutional Provisions for Appointment and Removal of Government
Auditors (Auditors- General) in Nigeria                                                         31
2.1.6.6 Constitutional Duties and Rights of the Auditor-General in Nigeria             31
2.2       Theoretical Framework                                                                                   33
2.2.1    Efficiency Theory                                                                                           33
2.2.2    Agency Theory                                                                                               33
2.2.3    Stewardship Theory                                                                                        34
2.2.4    Stakeholder Theory                                                                                         35
2.2.5    Institutional Theory                                                                                        37
2.3       Empirical Review                                                                                            37
2.4       Summary of the Review of Related Literature                                              49
2.5       Research Gap                                                                                                  50
REFERENCES                                                                                                          51
 
CHAPTER THREE
METHODOLOGY
3.1       Research Design                                                                                             59
3.2       Population of the Study                                                                                  59
3.3       Sources of data                                                                                               59

• Sampling Technique and Sample Size 59

3.5       Description of Research Instruments                                                              60
3.6       Data Analyses Techniques                                                                              60
3.7       Model Specification                                                                                        60
3.8       Validity of the Research Instrument                                                              61
3.9       The Reliability of the Instrument                                                                    61
3.11     Decision Rule                                                                                                  63
REFERENCES                                                                                                          64
 
CHAPTER FOUR
DATA ANALYSES AND PRESENTATION
4.1   Introduction                                                                                                        65
4.2   Distribution and Return of Questionnaire                                                          65          4.3     Descriptive Analysis of Research Questions One to three                                    66          4.4     Descriptive Analysis of Research Questions two                                                                                     68          4.5     Descriptive Analysis of Research Questions three                                                                                   72
4.6Test of Research Hypotheses                                                                                 764.7   Discussion of Results                                                                                                             82
REFERENCES                                                                                                          85
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1       Summary of Findings                                                                                                 86
5.2       Conclusion                                                                                                      86
5.3       Recommendations                                                                                          87
5.4       Contributions to Knowledge                                                                          88
5.4       Suggested Areas for Further Studies                                                              88
BIBLIOGRAPHY                                                                                                     89

Effective and Efficient Tax Policy  A Tool for Resuscitation of Nigerian Economy                                          
  CHAPTER ONE
 1.0                               INTRODUCTION
1.1                    BACKGROUND OF THE STUDY
An operation becomes effective when it achieves the desired goal. It becomes efficient when the goal was achieved at a minimum cost. Policies are formulated to control functions so as to conform to desired target. Indeed, the economy of any given nation grows when the population growth is accompanied by positive net capital formation and the relationship between the latter and the growth of output is given by assumed constant incremental capital output ratio. Tax functions include:

• To generate revenue for government to carry out its business,
• To restrain consumption so that amount of investment needed for non inflationary growth can be undertaken
• To do the above 2 in such a way that consumption of high income groups is restrained more proportionately, than consumption of the lower income groups. If these tasks are successfully performed, economic growth will take place and the distribution of income should be improved. These kind of taxes required in these cases are direct taxes, progressive expenditure taxes supported by gift taxes. Taxation, rather than natural resources, such as oil, ought to be the central instrument of state economic policy in Nigeria – as it is in truly modern democratic states, 1 Sven Steinmo (2011), Taxation and Democracy, New Haven.

Tax, a compulsory levy imposed on taxable persons within a given domain or society by the authority that governs the same society has become an instrument of control and revenue generation in the hands of the authorities concerned. Historically, tax was invented to finance public projects like wars and provision of essential public infrastructures. Lord Keynes had it that tax policy is key to economic restructuring and development. Tax policy involves the determination of goals, objectives, strategies, priorities and frame work reflected in formally adopted tax planned document. Nigeria is much a consuming nation rather than a productive one. The Nigerian economy tends to mono economic one, heavily dependent on oil which is not even processed in Nigeria.
The Gross Domestic product and other economic indicators show Nigeria economy to be a weak one. The GDP though recently shown to be high cannot portray how well off Nigerian standard of living is, hence very negligible number of Nigerian live in affluence while much great percentage of the Nigerians living below poverty line. Such critical economic indicators like power supply, employment rate, inflation, mortality rate, etc. score Nigerian economy very low.
There is low propensity to save, no clear future and hopelessness stare on the majority of Nigerian faces. The above suggests how weak Nigeria economy appears, though there appears significant improvement in the general economy recently. There is need for better economic planning. With proper economic planning the economy of Nigeria must boost. At the core of economic planning is effective and efficient tax policy. There are the raw materials, abundant human resources and abundant natural resources. Tax could restructure the economy of Nigerian when the functional tax policy is seen to be in place.
 
1.2 STATEMENT OF PROBLEMS
 
National Tax policy is seen as document which spelt out issues on tax, taxations and all matters concerning tax.
Nigerian economy is slow at shaping up.  This is caused by domestic debts, high inflation, corruption, resulting in high poverty level. Business Eye.  Pg 22, 32 and 39 Sept. 2012
Revenue from personal and corporate tax contribute about ¾ of Federal Revenue, Samuelson (2002)
US Federal Budget Receipts from taxes amounts to 95% in 2003.  Hoffman, Smith, Willis (2004).
Former UN Sec. Gen. Kofi Annan, has said that tax avoidance and murky deals by major international firms are depriving African states of $10 billion each year, Abota, Sun Newspaper June 24^th, 2013.
Money laundering and tax evasion have become a norm especially among the companies owned by Asian; in Nigeria – Sun Newspaper 28^th June 2013 pg 19
Poor legal framework on the tax could bring about poor yield from tax. Absence of effective and efficient tax structure brings about low compliance to tax. Also poor accounting records and corruption could bring about poor yield from tax
Low revenue contributions from tax as results of the above factors ultimately lead to Government not having enough money to finance its bills. This can directly result in low economic development. Functional national tax policy can go a long way in assisting Nigerian economy grow and meet the needs of Nigerians.
 

• OBJECTIVE OF THE STUDY

The main objective of the study is to access the effectiveness and efficiency of the current Nigerian tax policy in resuscitating the Nigerian economy, vide its increased revenue generation which would provide revenue for Government to do its business. Other sub-themes in the objective are:

1. To evaluate the capacity of the new tax policy in significantly improving the growth/development of the Nigerian economy in relation to Gross Domestic Products.
2. To access the capacity of the new tax policy in increasing the revenue in relation to federal government demand for capital expenditure (for construction, health etc).

• To compare the compliance rate of the tax payer before and after the adoption of the new tax policy in Nigeria as would show in greater revenue generation to better the lives of the whole Nigerians.
  • HYPOTHESES OF THE STUDY
• The performance of tax as a result of new tax policy does not have corresponding positive impact on the Nigerian Gross Domestic Product.

2. The revenue generation from tax as a result of new tax policy does not have positive impact on the Federal Capital Expenditure (for capital formation).
3. The revenue generation from tax as a result of new tax policy cannot improve or bring about increase in per capita income of Nigerians.
   • RESEARCH QUESTIONS

• To what extent can the new tax policy significantly improve the growth/development of the Nigerian economy?

2. To what extent does the new tax policy increase tax collection in Nigeria?
3. Is there any significant difference between the level of compliance by the tax payers before and after the adoption of the current tax policy in Nigeria?
4. Does the increase in revenue generation if any positively impact on Nation’s Gross Domestic Product, Federal Capital Expenditure and Per Capita Income.

 
1.6  SCOPE OF THE STUDY
The research is on the Tax Policy on individual Income tax, company tax, Petroleum Profit tax, Value Added tax and other tax areas.  It covers revenue generation from tax for a gap of 2004 – 2012.  This is to ascertain the revenue contribution to National development.
Such development indicators that affect the economy like GDP, quality of life, investment  are looked into to see the growth and investment in Nigerian Economy. This is to see the impact of tax in improving the economy of Nigeria
 

• SIGNIFICANT OF THE STUDY

The research is significant to two categories of interest namely practical and academic significant.
PRACTICAL SIGNIFICANT
The research would expose what need to be known, the area of improvement to tax administrators and tax payer. The tax payers would find the research very useful as good model approaches to issue on tax is documented. The State Inland Revenue Services and Federal Inland Revenue Services will find the tax guide well exposed and relevant to them in their duties. The tax advisors and taxpayers would use the research work as guide for tax planning.
ACADEMIC RELEVANCE
In the field of academic, the research would contribute as a body of knowledge for the students in the field of taxation.
It offers a good guide for further studies in the area. It would assist young research personal get more exposed in the area of tax. It can be a point of reference for other research purposes.
              1.8     OPERATIONAL DEFINITION OF TERMS
Tax – compulsory levy imposed on eligible person/s in a given society by the Government or authority of that society or country.
Tax Policy – This is tax guide, the modus operand on tax aimed at attaining the goal set up by the government machinery.
Merit Wants – These are staple food needed to keep a laborer alive. It is no more than a daily bread only enough to keep a being minimally functional in a day.
Effective – the ability to achieve a goal not considering the cost or commensurate benefit or advantage.
Efficient – the ability to produce a result under such minimum cost so that the end result is very advantageous.
Economic growth – this is a state where capital formation is in consonance with population growth such that the output is assumed constant incremental capital ratio in growth.
Mono Economic – the state of economy where there is heavy reliance on one line of business or heavy reliance on a line of product/service.
Gross Domestic Product – the total value of goods and services produced by a given country.
Fiscal Policy – the way a government attempt to manage the economy through taxation, spending and borrowing.
Investment: the act of investing money into an economic activity to boost the economy or boost productivity.

CHAPTER ONE

INTRODUCTION

1.1       Background ofthe Study.

 
Over the years and present, the quality of an audit still remain a great value to its stakeholders, simply because it is the product of a competent third party known as the auditor who is believed to have no personal interest in the affairs of the organization, and also being one who is professionally bound to discharge his duty with utmost diligence, objectivity, independence and professional competence. Audit involves performing procedures to obtain evidence about amounts and disclosures in the financial statements so as to evaluate the appropriateness of accounting estimates made by management (KPMG, 2008).
In the wake of various financial reporting scandals and audit failures associated with some corporations in Nigeria, such as Intercontinental Bank Plc. (2009), African Petroleum Plc. (2009), Afribank Plc. (2009) etc., financial regulators, accounting bodies and policy makers have come to elicit ways to combat these misfortunes and enhance quality audit. Among various issues in concern, the long tenure of an audit engagement is believed to be a compromising factor in guaranteeing the independence of an external auditor as there is increased level of familiarity between the auditor and the client, which as a result puts the auditor’s independence at a high risk of being jeopardized. Independence is fundamental to audit and is the credibility of the audit report; an audit conducted without ‘independence’ is essentially meaningless,(Fogarty & Lansley, 2002).
In order to solve the familiarity threat and improve audit quality, mandatory rotation of external auditors have been suggested as one of the measures to be adopted, meaning that a maximum limit is set for the tenure of an auditor with a firm in order to preserve auditors independence and aid quality audit report (healey & Kim, 2003);(Francis J. R., 2004). Audit quality also appears to improve when the duration of the audit–client relationship is truncated (Chung, 2004). The massive audit cases that occurred in different stock markets in recent years have shown that the reason for audit failure is not merely the technical failure, but a quite important factor is that auditors have lost independence (Li & Wang, 2005). In response to the financial reporting scandals which robed the banking sector of its credibility in Nigeria, the Central Bank of Nigeria (CBN) in 2010 issued a directive in line with the provisions of the CBN Code of Corporate Governance for banks, which stipulates that “the tenure of the auditors in a given bank shall be for a maximum period of ten years after which the audit firm shall not be re-appointed in the bank until after a period of another ten years. For the avoidance of doubt, the maximum period of ten years shall include the period on audit firm which later merged, changed name, and/or first commenced audit assignment in the bank.” (Central Bank of Nigeria, 2010).
However, various issues have been raised about the Mandatory rotation of auditors whereby some proponents do support its implementation with the view that it would secure auditors independence which would eventually aid audit quality and prevent audit failures, other opponents argue that the “mandatory audit firm rotation may not be the most efficient way to enhance auditor independence and audit quality (U.S General Accounting Office, 2003). This study seeks to examine the effect of mandatory audit firm rotation on auditor independence and audit quality in Nigeria.

1.2       Statement ofthe Problem

 
Credible financial information is vital to the growth of any economy; also auditors are expected to be independent and objective in the discharge of their responsibilities (Adelaja, 2009). The most vexing issue hindering credible financial information is the problem of audit failure and it is believed that at the heart of audit failure lies the issue of lack of external auditor’s independence which in turn hinders audit quality. The report of external auditors in corporate financial statements is seen as providing key assurance to the interest of shareholders (Gallegos , 2004). But where the independence of the auditor is in doubt, the stakeholders lose their confidence in the credibility of the financial statement and this result to a great deal of disappointment to various corporate stakeholders/investors in Nigeria. The lack of auditor independence and poor audit are also attributed to various financial reporting scandals (such as Intercontinental Bank Plc (2009), African Petroleum Plc. (2009), Afribank Plc. (2009) etc.,) which have occurred over the years and which have also put some big organizations out of business.
The issue of mandatory audit rotation is one of the measures proposed to counter this problem of audit failure. The study seeks to address the knowledge gap on how the fate of audit quality is determined by auditor’s independence, and how both can be invariably affected by the implementation of mandatory rotation of auditors. As many scholars do support its implementation, many also are against its effects and usefulness in addressing the issue of audit failure of which one of the sensitive issues behind this is the lack of auditor independence. Therefore, on this premise, this research focuses on the effect of mandatory audit firm rotation on auditor’s independence, audit quality and investors’ confidence.
 

1.3       Objectives ofthe Research

 
The objectives of this study are thus stated as follows:

1. To determine the relationship between mandatory audit firm rotation and auditor independence.
2. To ascertain the effects of mandatory audit firm rotation on audit quality.
3. To ascertain the extent to which mandatory audit firm rotation strengthens Nigerian investors’ confidence.

1.4       Research Questions

 
The research questions are given as below:

1. What is the level of impact of mandatory audit firm rotation on auditor independence?

2. To what extent does mandatory audit firm rotation enhance audit quality?

3. To what extent does mandatory audit firm rotation strengthen the Nigerian investors’ confidence?

1.5       Research Hypotheses

 
The hypotheses for this study are thus stated in the null form:

1. There is no significant relationship between Mandatory audit firm rotation and auditor’s independence.
2. Mandatory audit firm rotation has no significant effect on audit quality.
3. Mandatory audit firm rotation has no significant effect on investors’ confidence.

1.6       Scope and Limitations ofthe Study

 
In the spotlight of this research work, the study observed the effect of mandatory rotation of auditors on auditor independence and audit quality in South-east Nigeria. The researcher focused on public and private sectors of the economy, eliciting the perception of Nigerian investors and professional accountants in Anambra State and Enugu State, and covering a period of 2012 to 2015.
The degree of success attributed to this research work mostly depended on the timely response and pleasant cooperative attitude of some sources of information.
 

1.7       Significance ofthe Study

 
This research elaborates on effects of mandatory audit firm rotation on auditor’s independence, audit quality, and investors’ confidence, particularly eliciting the perception of various practitioners and investors in Nigeria. The study is of great importance as it is one which is aimed at evaluating the possible means of strengthening the ethical conducts of an external auditor in maintaining professional skepticism in the course of duty, and also being one which is globally debated based on its implementation, advantages and disadvantages, and its effect on various professional ethics of the discipline. The research and its findings are expected to contribute to the existing body of knowledge, and to various professionals and academics in the discipline.
 

1.8       Operational Definition of Terms

 
AUDIT is an independent examination of, and expression of opinion on the financial statements of a business enterprise by an appointed auditor in accordance with his terms of appointment and in compliance with the relevant statutory and performance requirements.
 
EXTERNAL AUDITOR also known as an independent auditor is an audit professional who performs an audit on the financial statements of a company, government, individual or other legal entity and who is independent of the entity being audited.
AUDITOR INDEPENDENCE is a mental attitude and physical appearance which portrays the auditor as being uninfluenced by others in judgment and decision.
AUDIT TENURE is the number of years an auditor is retained by the firm.
AUDIT QUALITY is the market-assessed joint probability that an auditor will discover a breach in a client’s accounting system although diverse, reflect the same structure.
MANDATORY AUDIT FIRM ROTATION is the imposition of a limit on the period of years in which a particular registered public accounting firm may be the auditor of books of accounts for a particular issuer.
INVESTORS’ CONFIDENCE is the confidence stakeholders place on investments remaining liquid or paying expected income.

EFFECT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON COMPANY PERFORMANCE RATIOS: STUDY OF QUOTED COMPANIES IN NIGERIA

 
ABSTRACT
This study arose out of the need to justify the adoption of International Financial Reporting Standards (IFRS) in Nigeria.  The thesis is that the adoption of IFRS should improve accounting quality and hence, investors should make qualitative decisions. Financial ratios that addressed profitability, liquidity, solvency and growth in investments were calculated from the financial statements of companies that were into the production of consumption and industrial goods. The structural hypothesis under confirmation is that financial ratios under Nigerian Statements of Accounting Standards (SAS) and IFRS do not differ on grounds that Nigeria has long adapted accounting standards issued by the International Accounting Standards Boards. Each participatory financial ratio was calculated from financial statements prepared under IFRS and SAS regimes in the same year. Exploratory analysis and Wilcoxon tests for differences in the distribution of each financial ratio was conducted using SPSS facilities Version 20 to detect whether a financial ratio increased or decreased under IFRS regime. The study finds no significant increase/decrease in the participatory financial ratio under the IFRS regime. It was recommended that a further study be conducted to address other metrics of accounting quality.
CHAPTER ONE
INTRODUCTION
 

• BACKGROUND TO THE STUDY

In the last quarter of the previous century, the world economies moved speedily towards globalisation. Multinational companies are manufacturing and selling across the world and many of these firms are listed at foreign stock exchanges. Globalisation of markets and establishment of multinationals led to increased desire and awareness about international markets. This was soon followed by globalisation of financial markets which increased the value of understanding of international financial results and reporting formats. Rapid improvement in communication technologies and easy access through internet has further spread the profile of international investor. Nowadays international investors are not limited to some portfolio managers in big banks. International investors are now as diverse as sophisticated equity manager to a small investor in a remote town. Investors too have diversified their portfolio by international equities and bonds. This rapid globalisationfuelled the desire to have common global standards that could be understood, applied and followed across nations.
Nigeria’s Statements of Accounting Standards (SAS) align substantially with the pronouncements of the International Accounting Standards Board (IASB) but maintained its own unique structure and peculiarities until January 1, 2012. The International Accounting Standards (IASs) are principles based, and the Nigerian Accounting Standard Board (NASB) implementsthe (IASs) in specific contextsin the formulation of its standards. When there is no NASB SAS on the treatment and disclosure of information, the relevant IAS is invoked. This suggests thatNigeria adopted IFRS since its inception. On the premise that the International Financial Reporting Standards (IFRSs)are off shoot of IAS, it becomes an issue whether the formal move of Nigeria to adopt IFRSs in January 1, 2012 is anything extraordinary.
 
IFRS permits considerable discretion or flexibility in disclosure of financial information regarding certain transactions. They also debar certain alternatives which eliminates accounting information distortions. In a sense, the availability of alternatives guided by principles can lower the quality of accounting information. IASB provides broad guidelines as principles for member countries to adopt or adapt and, in consonance, Nigeria adapted the IFRS by making them specific for reporting entities. This approach permits generalisation of uniformities of accounting information within the Nigeria context. The adoption of IFRS, then, suggests that reporting entities are accorded freedom of discretion to choose from options allowed by a standard which hitherto was not available in a rule-based jurisdiction like Nigeria.If this is correct, then, the adoption of IFRSs should lower quality of accounting information.The adoption of IFRS suggests that where alternative treatments of transactions are permitted, all reporting entities would exercise discretions and disclose the choice of alternative for users of accounting information. In blunter terms, this increases information asymmetry and, hence, lowers quality of accounting information. Leuz, C., Nanda, D and Wysocki, P. D (2003), and Langmead and Soroosh (2009) also subscribe to this argument when they assert that IFRSs lack detailed implementation guidance which affords managers greater flexibility to exploit accounting discretion to their advantage.
 
The argument advanced in the literature for the adoption of IFRS is that it reduces the opportunity to overstate earnings or delay recognition of losses (Ewert and Wagenhafer, 2005; Barth, M, Landsman, W and Lang M. (2008). Ahmed, A. S., Neel, M. and Wang, D (2013) argued that IFRSs are principles based and as such difficult to structure transactions to avoid recognition of a liability, but they lack implementation guidance (Langmead &Soroosh, 2009); as an example, IFRS is broad in revenue recognition for multiple deliverables, and this can afford managers discretionary interpretation which can lead to distortion of accounting information. Irrespective of the direction of the argument—for or against—the fact remains that Nigeria has since adopted IFRS in disguise, but for better rather than worse—“Better” in the sense that Nigeria tailored IASs to limit flexibility accorded managers of firms, and hence limits opportunity to game on information disclosure.
 
Every country is unique in terms of culture and controls, and Nigeria is no exception. NASB took into cognisance weaknesses in financial controls to address culture when it adapted IASs foruse. Therefore, the formal adoption of IFRS suggests that managers of reporting entities have been awarded a licence to exercise discretion inadjusting and mal-adjusting the Nigerianisation in financial controls. Obazee, the Executive Secretary and Chief Executive Officer of Financial Reporting Council of Nigeria (FRCN), aligned himself with this statement when he stated that“… [C]ouncil will require management assessment of internal controls including information systems controls with independent attestations… and Council is to exercise strict oversight of professional practice” (Obazee, 2012, pp. 23-25).
 
Nigerian Statements of Accounting Standards offer little opportunity to manage earnings as there are tighter restrictions in terms of guide and rules. This restriction, perhaps, explains the refusal of multinational companies operating in Nigeria to adopt SASs (cf. “Nigeria’s Financial Hub”, 2011).Prior to the enactment of NASB Act No. 22 of 2003, the SASs were not accorded the status of law, and hence Nigerian Standards were not wholeheartedly observed by reporting entities.The main legislation that guides information disclosure then is the Companies and Allied Matter Act (CAMA, 2004) though it makes provisions on the role of the NASB in relation to accounting matters (see Section 335 and 356).Where SAS is in conflict with CAMA requirements, the former prevails. Such was the case when SAS 18 on Statement of Cash Flows was issued. This is in line with Section 356 of CAMA.
 
1.2 STATEMENT OF THE PROBLEM
The fundamental problem is  that management could manipulate accounting ratios to influence share prices but proper disclosure is expected to guide against this. The extent to which transition to IFRS can effectively do this which is the problem being investigated. This question is important because NASB has consistently adapted the International Accounting Standards (IAS) under the International Accounting Standards Committee (IASC) to suit the peculiarities of the Nigerian economy and any new form of transaction that may emerge.  The thesis is thatif the IFRS are offshoots of the IAS, then the transition to IFRS should not affect the financial statement ratios. Consequently, the study addresses four broad brush issues that border on performance appraisal by existing and potential investors.
 
The first issue addresses profitability performance. Market prices capture the profitability of firms; for example, the return on capital (ROCE)is a good predictor of share prices (O’Connor, 1973). Thus, it ought to be detected whether the transition affected profitability assessment. The second issue addresses liquidity assessment. The general notion among investors is that profitability is not liquidity, and this is plausible because many profitable firms have gone out of operation for lack of liquidity. Thus, it ought to be detected whether the proper disclosure through IFRS.        S The third issue borders on indebtedness, which extends the concept of liquidity to assess long term solvency. Managers may manipulate components of working capital to improve on the liquidity ratios but the increased disclosures under IFRS should disclose management intentions. Thus, it ought to be detected whether the transition increases or decreases indebtedness. The fourth, final issue addresses the share-based ratios (e.g. earnings per share, net assets per share). Share-based ratios are direct inputs into market prices (Barnes, 1987). If this inclination is correct, then it ought to be detected whether the transition affected the market price of shares via the share-based ratio.
 
1.3 OBJECTIVES OF THE STUDY
The four issues under investigations prop up four objectives that directed the planning and conduct of this study. The specific objectives of the research are to:

1. determine the extent to which the profitability ratios differ under Nigerian GAAP and IFRS.
2. ascertain the extent to which liquidity ratios differ under Nigerian GAAP and IFRS.
3. determine the extent to which indebtedness ratios differ under Nigerian GAAP and IFRS.
4. ascertain the extent to which share-based ratios differ under Nigerian GAAP and IFRS.

 
1.4 RESEARCH QUESTIONS
The research questions that guide the data analysis are as stated under.

1. To what extent do profitability ratios differ under Nigerian GAAP and IFRS?
2. What extent do liquidity ratios differ under Nigerian GAAP and IFRS?
3. What magnitude indebtedness ratios differ under Nigerian GAAP and IFRS?
4. To what extent do the share-based ratios differ under Nigerian GAAP and IFRS?

 
1.5 HYPOTHESES OF THE STUDY
In a Popperian manner, the research questions or the objectives are re-stated as under:

1. Ho: There is no significant difference between the profitability ratios under Nigerian GAAP and IFRS.
2. Ho: There is no significant difference between liquidity ratios under Nigerian GAAP and

IFRS.

3. Ho: There is no significant difference between indebtedness ratios under Nigerian GAAP and IFRS.
4. Ho: There is no significant difference between the share-based ratios under Nigerian GAAP and IFRS.

 
1.6 SCOPE OF THE STUDY
The study addressed performance in terms of profitability, liquidity, solvency and growth in shareholder investments. In profitability, only the primary ratio (return on capital employed) is considered an appropriate variable, and in liquidity, the cash flow per share is drawn for analysis. Growth in shareholder’s investment is assessed in terms of market value to book value, and solvency in terms of total liabilities to shareholders fund. Apparently the year of transition provided the only opportunity whereby dual reporting (reporting based both the local GAAP and IFRS) occurred. In the case of Nigeria, December 2011 was the transition year for significant public interest entities as specified in the report of committee on the roadmap for adoption of IFRS in Nigeria.
 
However, as a result of insufficient data, only a cross-sectional analysis was embarked upon: Financial ratios of a single year were calculated across records of firms but within an industry. The restriction to intra-industry analysis is supported because financial ratios calculated from records of firms within an industry follow a normal distribution (Avwokeni, 2006).The financial ratios that are the subjects of analysis were calculated for 2011 and 2012 financial years, and designated as ‘before adoption’ and ‘after adoption’.  Intra-firm analysis was not undertaken for uneven time series data set.
 
1.7 SIGNIFICANCE OF THE STUDY
This project is significant for a number of reasons. Ahmed, Neel, and Wang (2013) point out that understanding the effects of mandatory adoption on properties of accounting numbers is of potential interest to standard setters and securities regulators in countries that are considering IFRS adoption as well as in countries that have adopted IFRS. Thus, this study is of immense benefit to the Financial Reporting Council of Nigeria (FRCN), and Securities and Exchange Commission (SEC). Furthermore, Barth (2008) asserted that evidence on the question of the effect of adoption of IFRS on accounting quality is of particular importance to the International Accounting Standard Board (IASB) because it can help the Board evaluate whether its stated objective of improving accounting quality is being accomplished. Thus, this study provides evidence to IASB on Nigeria decision to adopt IFRS. Finally, analysts, investors, and other users may also find this study useful to understand the effects of IFRSs adoption on accounting quality to potentially reassess how they use accounting numbers.
1.8       OPERATIONAL DEFINITION OF TERMS
For the study, the following definitions are relevant:
CAMA: This is known as Companies and Allied Matters Act.
Earnings Per Share (EPS)represents the portion of a company’s earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock. The figure can be calculated simply by dividing net income earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used.
Financial Ratios: These are relationships determined from a company’s financial information and used for comparison purposes.
FRC: This means Financial Reporting Council of Nigeria. This was established by the Federal Government of Nigeria vide the Financial Reporting Council Act No 6 of 2011.
IASB: This stands for International Accounting Standards Board. This is organisation is the successor of International Accounting Standards Committee responsible for the developing and issuing global accounting standards.
IAS: This means International Accounting Standards
IFRS: This means International Financial Reporting Standards
Liquidity Ratio: This refers to an entity’s capacity to pay short-term obligations. Some of the ratios usually calculated under the liquidity ratio include: current ratio, acid ratio, quick ratio.
NASB: This simply means Nigerian Accounting Standards Board. This was the government agency responsible for the issuance of statement of accounting standards and ensuring compliance with accounting standards. It came into existence in 1982 and became statutorily established in 2003 vide NASB Act No 22 of 2003.
Profitability Ratio:A class of financial metrics that are used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor’s ratio or the same ratio from a previous period is indicative that the company is doing well.
This gives users a good understanding of how well the company utilized its resources in generating profit and shareholder value. The following are profitability indicator ratios: profit margin, return on assets, return on equity and return on capital employed.
SAS: This stands for Statements of Accounting Standards. These statements accounting standards that were issued by the Nigerian Accounting Standards Board.
 
Solvency Ratio:A key metric used to measure an entity’s ability to meet its debt and other obligations. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company’s solvency ratio is, the greater the probability that it will default on its debt obligations.
There are battery of ratios computed under solvency ratio, they include: debt to equity ratio, debt to assets and interest coverage ratio.

Effect of Corporate Governance on Firm Financial Performance in Nigeria A Study of Non Financial Performance Companies Registered with Nigerian Stock Exchange NSEs
CHAPTER ONE
1.1       BACKGROUND OF THE STUDY
One feature of Modern Corporation is the separation of ownership from management. Hitherto, the typical business is owned and managed by the same individual or group of persons. Thus a firm was characterized by its numerous owners having no management function, and managers with no equity interest in the firm. Under the new dispensation, however, professional managers who are considered more competent than the owner manager are hired to run and manage the affairs of the company (Wikipedia, 2007). Thus it was important that an appropriate framework be put in place that would guarantee transparency, accountability and fairness in the management of companies (Howard, 2000)
Corporate governance is therefore about ensuring that various mechanisms are in place to guarantee that the goals pursued by managers do not different from that of the owners of the company. Tricker, who conceived the term “corporate governance” back in 1984, made the very clear distinction between management and control in taking the position that: “if management is about running business, governance is about seeing that is run properly”
Corporate governance is concerned with ways in which all parties interested in the well-being of the firm (the stakeholders) attempt to ensure that managers and other insiders take measures or adopt mechanisms that safeguard the interests of the stakeholders. Such measures are necessitated by the separation of ownership from management, an increasingly vital feature of the modern firm.
The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. Therefore, by doing this it also provides the structure through which the company’s objectives are set and the means of attaining those objectives and monitoring performance. This definition is in line with the submissions of, Wolfensohn (1999) Uche (2004) and Akinsulire (2006).
The board of directors is central to the corporate governance mechanism in market economies. The board is one of the most important and possibly beneficial internal mechanisms of corporate control (Manne, 1965; Alchian and Demetz, 1972; Bonnierand Bruner, 1989). The importance of internal control mechanisms has arguably increased following legal and regulatory developments that curtailed activity in the external market for corporate control (Jensen, 1991; Denis and Denis, 1995). The board is viewed as a primary means for shareholders to exercise control over top management, along with external markets for corporate control and institutional and concentrated shareholding.
A change in the composition of a firm’s board can take the form of a new appointment or some form of removal from the board: new appointment, resignation, retirement or death. Each of these changes may or may not be considered significant by the market. Change can also take the form of an increase or decrease in the proportion of outside directors to inside directors.
Effective corporate governance therefore reduces the “control rights” shareholders and creditors confer on managers which increases the probability that managers invest in positive net present value projects.  Thus, the relationship between the board and management, according to Al-Faki (2006), should be characterized by transparency to shareholders, and fairness to other Stakeholders. This will in effect mitigate the agency cost as predicted by Jensen and Meckling (1976) and boost corporate performance.
Furthermore, corporate performance is an important concept that relates to the way and manner in which financial resources available to an organization are judiciously used to achieve the overall corporate objective of an organization, it keeps the organization in business and creates a greater prospect for future opportunities.
Moreover, the financial scandals around the world and the recent collapse of major corporate institutions in the USA, South East, Europe and Nigeria such as Adelphia, Enron, World Com, Commerce Bank and recently XL Holidays, Pollybeck, Xerox, Cadbury, BCCI communication. Most public Nigerian corporations, such as NITEL, NNSL, NEPA, and NRC were either dead or simply drain pipes of public resources to mention but a few which have all been attributed to poor corporate governance was caused by greed, lax oversight of company board members and incompetent national body at noting the issues on time.
A review of the status of corporate governance in Nigeria from the sectorial perspectives- public, financial and real sectors reveals the absence of strong commitment to the tenets of good corporate governance. In view of the importance attached to the institution of effective corporate governance, the Federal Government of Nigeria, through her various agencies came up with various institutional arrangements to protect the investors of their hard earned investment from unscrupulous management and directors of listed firms in Nigeria. These institutional arrangements, produced the “Code of corporate governance best practices” issued in November 2003.
The code proposes that the business of a firm should be managed under the direction of a board of directors at which they delegate to the CEO and other management staff on the day to day management of the affairs of the firm. The best practices of the code also recommend that the board sees to the appointment of a qualified person as the CEO and other management staff. The directors, with their wealth of experience, are expected to provide leadership and direct the affairs of the business with high sense of integrity, commitment to the firm, its business plans and long-term shareholder value. In addition, the board provides other oversight functions. Thus there are other mechanisms of corporate governance which includes; the audit committee, shareholders rights and privileges.
The emergence of mega banks in the post consolidation era prompted the Central Bank of Nigeria to issue a new code of corporate governance which became operative in 2006. In the same vein, the Nigerian Securities and Exchange Commission (SEC), published the revised Code of Corporate Governance in September, 2009 after consultations with other regulatory bodies. The new code was issued to address the weaknesses of the 2003 code and to improve the mechanism for its enforceability.
Internationally, organisations such as UN and OECD have been advocating for levels of corporate behaviour. In UK, corporate governance is dealt with in a “combined code” report which is a combination of series of reports developed by independent committees such as the Cadbury report (1992), Greenbury report (1995), Hampel report (1998), Turnbull report (2002-2003). In USA, the Sarbanes-Oxley Act (2000), have been developed so as to reduce or avoid high scandals in corporations.
According to IFAC report (2008), “companies are mirrors of the societies in which they operate and they influence each other”, therefore all stakeholders responsible for promoting sound corporate governance such as the board, the management , audit committee and regulators are all challenged and compelled to ensure that sound corporate governance exist (Williams 2001).
1.2       STATEMENT OF THE PROBLEM
It is has been noted that the recent global events concerning high-profile corporate failures and fraud scandals in the national as well as international scene have put back on the policy agenda and intensified debate on the efficacy of sound corporate governance mechanisms as a means of increasing firms’ financial performance and their sustainability.
The issue of structure of the board of directors as a corporate governance mechanism has received considerable attention in recent years from academics, market participants, and regulators. It continues to receive attention because boards of directors have been largely criticized for the decline in shareholders’ wealth. They have been in the spotlight for fraud cases that had resulted in the failure of major corporations in the national and international scene.
Another recent issue in the corporate governance scene is the rapid change in the period from 1999 to 2006  were  hundreds of firms converted from dual CEO leadership structure to non-dual structure, while a much smaller number of firms converted in the opposite direction. This recent trend is partly due to several high-profile cases where powerful dual CEOs were found to abuse their tremendous power at the expenses of the company and shareholders.
There have also been debates on the issue of gross negligence on the part of auditors and audit committee members in discharging their duties properly. Thus, the high incident of poor corporate performances recorded in Nigeria shows audit committee members who are required to check the activities of board have failed to effectively discharge their checkmating functions. Its activities remains obscure as little or nothing is heard about the committee’s impact on sensitive corporate governance issues, particularly those that border on their regular statutory functions.
These high corporate fraud scandals and poor corporate management by directors and managers, as well as the inability of the audit committee to carry out their checkmating and monitoring roles have raised doubts  on the performance and sustainability of most Nigerian companies and brought to the fore the need for good corporate governance.
1.3       OBJECTIVES OF THE STUDY
The main purpose of this study is to ascertain the effect of corporate governance on financial performance of companies. More specifically, this study is designed to;

1. To evaluate the extent to which the board size of a company affects its Return on Equity.
2. To ascertain the impact of Board composition structure on Profit margin and Return on Equity.
3. To evaluate the relevance of the audit committee on Profit margin and Return on Equity.
4. To ascertain the significance of CEO non-duality on Profit margin.

1.4       RESEARCH QUESTIONS
The study attempts to find answers to the following specific questions:

1. To what extent does Board size affect Return on Equity? Does the number of Outside directors significantly boost corporate Profit margin and Return on Equity?
2. Is there any contributory impact of the audit committee on Profit margin and Return on Equity?
3. To what extent does CEO duality boost or impede corporate Profit margin?

1.5       RESEARCH HYPOTHESES
In this investigation, the following hypothesis will be tested.

1. H0: There is a negative relationship between Board size and Return on Equity.
2. H0: There is no significant impact between Board composition on Profit margin and Return on Equity.
3. H0: There is no significant impact of Audit committee on Profit margin and Return on Equity.
4. H0: There is no significant impact of CEO duality on Profit margin 

1.6       SIGNIFICANCE OF THE STUDY
This study extends and contributes to the body of research using Nigerian data to investigate the likely impact of sound corporate governance on firms’ financial performance in Nigeria. The findings would be useful to;
Stakeholders in the Nigerian Stock Exchange (NSE) as it provide evidence on the relationship between board structure and firm’s financial performance.
Board of Directors and management will take a clue from this research work to review how strategic and the effective roles they play at improving firm’s performance and the dire need of eschewing sound corporate governance cultures in organisations they find themselves in.
Auditors and Audit committee members will become more enlightened of the need to uphold high professional and ethical standards expected of them in boosting corporate performance and thus contributing towards the sustainability of Nigerian companies in whole.
It will also provide information to regulatory Authorities on the expected roles they play in instilling sound corporate discipline and also the positive impacts sanctions and penalties given to corporate miscreants’ aid in enhancing sound corporate performance.
Finally, this work will be beneficial to future researchers and academicians who want to broaden their knowledge horizon in this area of study.
1.7       SCOPE OF THE STUDY
“Corporate governance and firm financial performance; a case study of Non-financial companies registered with NSE”, in view of the wide nature of this topic, the researcher limits the study to the factors or effects of sound corporate governance on the performance of non-financial companies, which are the composition of board size, the number of outside directors, CEO duality and impact of existence of audit committee in corporations. The study covers a period of five years (2010 – 2014). Viable and relevant primary information were also sought from top and senior public and private individuals in Nigeria specifically in Port-Harcourt, Lagos and Abuja to support the researcher’s findings.
 
1.8       LIMITATIONS OF THE STUDY
During the course of the research work, the researcher encountered the following limitations.
The researcher experienced initially poor-cooperation from NSE officials. But however, with constant visitations and patience, I was able to get the necessary materials needed to facilitate the successful completion of the work.
Also, this research work was not only tactful but time consuming as in most times, huge amount of time was required in pursuit of relevant data for the study.
Funds were also required to visit relevant places and make necessary travels in search of relevant materials which were limited. But with the support of guardians, the researcher has been able to make such relevant visits so as to produce a good research work.
1.9       DEFINITION OF TERMS
GOVERNANCE: The act, process, or power of governing. It relates to decisions that define expectations, grant power, or verify performance.
CORPORATION: A Company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
FINANCIAL PERFORMANCE– Business results relating to company’s financial health, such as revenues, expenses, and profits.
OECD- ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT: An International economic organization of 34 countries founded in 1961 to stimulate economic progress and world trade i.e. assists governments to tackle the economic, social and governance challenges of their globalized economics.
SEC- SECURITIES AND EXCHANGE COMMISSION: The regulatory authority governing the Nigeria stock exchange market having surveillance over the exchange to forestall breaches of market rules and to deter unfair manipulation and trading.
NSE- NIGERIAN STOCK EXCHANGE: A markets which provides a platform by which registered companies trade their securities’- shares, stocks, bonds etc.
CAMA- COMPANY AND ALLIED MATTERS ACT (1990):  A law which provides for the formation of corporate entities and also sets a time and structure for corporate governance. It provides that every corporate entity must have a memorandum and Articles of Association which is the constitution.

CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND OF THE STUDY
Quality information is one of the competitive advantages for an organization. In an accounting information system, the quality of the information provided is imperative to the success of the systems. Accounting Information System (AIS) as one of the most critical systems in the organization has also changed its way of capturing, processing, storing and distributing information. Information has become a key resource of most organizations, economies, and societies. Indeed, an organization’s basis for competition has changed from tangible products to intangible information. More and more organizations believe that quality information is critical to their success (Wang, R.Y 2006).
 
However, not many of them have turned this belief into effective action. Poor quality information can have significant social and business impacts (Strong, Lee and Wang, 1997). There is strong evidence that data quality problems are becoming increasingly prevalent in practice (Redman, T.C 1998). Most organizations have experienced the adverse effects of decisions based on information of inferior quality (Huang, Lee and Wang, 1999). It is likely that some data stakeholders are not satisfied with the quality of the information delivered in their organizations. In brief, information quality issues have become important for organizations that want to perform well, obtain competitive advantage, or even just survive in the 21st century.
 
 
 
In particular, Accounting Information Systems (AIS) maintain and produce the data used by organizations to plan, evaluate, and diagnose the dynamics of operations and financial circumstances (Anthony, Reese and Herrenstein, 2005). Providing and assuring quality data is an objective of accounting. With the advent of AIS, the traditional focus on the input and recording of data needs to be offset with recognition that the systems themselves may affect the quality of data (Fedorowicz and Lee, 1998). Indeed, empirical evidence suggests that data quality is problematic in AIS (Johnson, Leith, and Neter, 1981). AIS data quality is concerned with detecting the presence or absence of target error classes in accounts (Kaplan, Krishnan, Padman and Peters, 1998).
Thus, knowledge of the critical factors that influence data quality in AIS will assist organizations to improve their accounting information systems’ data quality. While many AIS studies have looked at internal control and audit, Data Quality (DQ) studies have focused on the measurement of DQ outcomes. It appears that there have been very few attempts to identify the Critical Success Factors (CSFs) for data quality in AIS. Thus, there is a need for research to identify the critical success factors that affect organizations’ AIS DQ.
Information technology has changed the way in which traditional accounting systems work. There is more and more electronically captured information that needs to be processed, stored, and distributed through IT-based accounting systems. Advanced IT has dramatically increased the ability and capability of processing accounting information. At the same time, however, it has also introduced some issues that traditional accounting systems have not experienced. One critical issue is the data quality in AIS. IT advantages can sometimes create problems rather than benefiting an organization, if data quality issues have not been properly addressed. Information overload is a good example. Do we really need the quantity of information generated by the systems to make the right decision? Another example is e-commerce. Should the quality of data captured online always be trusted?
Data quality has become crucial for the success of AIS in today’s IT age. The need arises for quality management of data, as data processing has shifted from the role of operations support to a major operation in itself (Romney, M. and Steinbart, P. J., 2009). Therefore, knowledge of those factors impact on data quality in accounting information systems is desirable, because those factors can increase the operating efficiency of AIS and contribute to the effectiveness of management decision making.
 

• STATEMENT OF THE PROBLEM

The proliferation of computerized database with relative increase in errors of such stored data base in organizations which depend on them to support business process and decision making has been questioned by many analysts.
The number of errors in stored data and the organizational impact of these errors is likely to increase (Klein 1998).
 
Also, inaccurate and incomplete data may adversely affect the competitive success of an organization (Redman 1992). Indeed, poor quality information can have significant social and business impacts. For example, NBC News reported that “dead people still eat!” Because of outdated information in US government databases, food stamps continued to be sent to recipients long after they died. Fraud from food stamps costs US taxpayers billions of dollars.
 
Equally, losses in millions incurred by business organizations who were caught unawares by dramatic changes in interest rates is of great concern to both owners and management.
In particular, there are consequences of poor data quality in AIS. For example, errors in an inventory database may cause managers to make decisions that generate overstock or under-stock conditions (Bowen 1993). One minor data entry error, such as the unit of product/service price, could go through an organization’s AIS without appropriate data quality checks, and cause losses to an organization and / or harm its reputation.
 
More so, most of the information system research into data quality focuses on the theoretical modeling of controls and measurement while few studies have attempted to understand what causes the difference in AIS data quality outcomes, and what should be done to ensure high quality accounting information.
 
Most organizations have experienced the adverse effects of decision based on information of inferior quality. However, not many of them have turned this belief into effective action. Poor quality information can have significant social and business impacts.
 
Therefore, there is lack of knowledge of the CSF for data quality in AIS that can assist organizations to ensure and improve accounting information quality.
These has necessitated the conduct of this research.
1.3       OBJECTIVES OF THE STUDY
The main objective of this study is to examine the critical success factors for accounting information systems data quality. The subsidiary objectives include the following:

• To determine the factors that affects the variation of data quality in accounting information systems.
• To ascertain the variations with regard to the perceptions of importance of those factors that affect data quality in accounting information systems.
• To examine the stakeholder perceptions on importance of critical factors for accounting information systems.
• To investigate the factors that are critical success factors to ensure a high quality of data in accounting information systems
• To examine the organizations perspective in the importance and performance of critical success factors for accounting information system data quality.

 
1.4       RESEARCH QUESTIONS
In order to explore the research problem, the focus of this project is on five research questions which reflect on the objectives of the study are fielded.

• What factors affect the variation of data quality in accounting information systems?
• Are there any variations with regard to the perceptions of importance of those factors that affect data quality in accounting information systems?
• What are the perceptions of stakeholder groups in importance of critical factors for accounting information systems?
• Which of these factors are critical success factors to ensure a high quality of data in accounting information systems data quality?
• What are organizations perspective in the importance and performance of critical success factors for accounting information system data quality?

 
1.5       RESEARCH HYPOTHESES
In analyzing the critical success factors for accounting information systems’ data quality, some tentative statements were formed to help answer the research questions hence the following hypotheses that have to be tested were put forward for this study.
 
Hypothesis One
H_o:      There are no significant factors that affect the variation of data quality in   accounting information system.
H₁:      There are significant factors that affect the variation of data quality in         accounting information system.
 
Hypothesis Two
H₀:      There are no significant differences between the perceptions of importance           of critical factors for accounting information systems’ data quality, and             actual             performance of those factors.
H₁:      There are significant differences between the perceptions of importance of            critical factors for accounting information systems’ data quality, and actual performance of those factors.
Hypothesis Three
H₀:      There are no significant differences between different stakeholder groups in their perceptions of importance of critical factors for accounting information systems’ data quality.
H₁:      There are a significant difference between different stakeholder groups in their perceptions of importance of critical factors for accounting information systems’ data quality.
 
Hypothesis Four
H₀:      There are no significant critical success factors to ensure a high quality of data in accounting information systems.
H₁:      There are significant critical success factors to ensure a high quality of data in accounting information systems.
 
Hypothesis Five
H₀:      Different organizations have the same perspective in the importance and performance of critical success factors for accounting information systems data quality.
H₁:      Different organizations have different perspective in the importance and performance of critical success factors for accounting information systems data quality.
 
1.6       SIGNIFICANCE OF THE STUDY
Identifying the critical success factors for AIS could enhance the ability of AIS’s to gather data, process information and prepare reports. Outcomes of this research will contribute to the body of knowledge both in AIS and data quality field, and it may benefit other research into these areas. For example, it can help arouse the awareness of data quality issues in AIS field, and to make it possible to establish the linkage of the identified CSFs with the existing data quality dimensions for outcomes assessment.
Thus, understanding how these factors affect organizations’ AIS performance may be useful to practitioners. Focusing on those factors that are more critical than others will lead to efficiency and effectiveness AIS’s procedures. In brief, the results from this research are likely to help the academic community for future researchers, organizations’ top management, accountants, and IT managers obtain better understanding of AIS DQ issues.
 
1.7       SCOPE OF THE STUDY
This study is limited to four Nigerian companies selected for the case study in this research. Two of them were chosen from banking industry, and two from manufacturing industry. As there is no one set of criteria to distinguish banking industry and manufacturing industry for the purpose of the case study analysis of this research, employee number was use to define the size of the organizations. Although criteria defining organizations as bank, manufacturing vary, in this research organizations with more than 1000 employees were categorized as manufacturing companies while those organizations with fewer than 1000 employees were categorized as banking industries. In order to respect the privacy of the participating organizations and individual interviewees they were not identified by their real names or actual position titles.
 
 
1.8       LIMITATIONS OF THE STUDY
As part of the research experience by researchers all over the globe; certain limitations hindered the effective and smooth collection of data for the work. These in specific terms include: inadequate working fund, lack of time and difficulties (minimal) in obtaining needed data relevant to the subject matter of critical success factors for accounting information systems data quality.
 
Financial Constraint: The finance needed to carry out this work is too much and cannot be afforded by the student. This to an extent hampered the success of this work.
Time Constraint: Time was really a big constraint in carrying out this research study. The researcher had to combine the collection of materials for the study with other academic activities. The study was not easy to carryout due to distant part of the organizations and the huge financial burden involved.
Non-Challant Attitude of Respondents: Another limitation in the course of carrying this study was the non-chalet attitude of the respondents in supplying the necessary information. This was probably due to their ignorance of the main purpose of the study. Also many refused to grant interviews or answer question bordering on the activities of the organizations.
Scope of the Research: The study was constrained to Nigerian organizations; therefore, the conclusions drawn from this study may have a potential problem on generalization.
 
 
 
1.9       OPERATIONAL DEFINITIONS OF KEY TERMS
This section develops the definition of core terms for this research because precise definitions of core terms are the foundation of any research project.
 
Accounting Information System: Accounting information system (AIS) is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system and which is used to analyze and record business transactions for the purpose to prepare financial statements and provide accounting data to the organizations studied.
 
Critical Success Factor: Critical success factor (CSF) is the term for an element that is necessary for an organization or project to achieve its mission.
 
Data Quality: Data Quality (DQ) is the state of completeness, validity, consistency, timeliness and accuracy that makes data appropriate for a specific use.
Data Suppliers: Data suppliers are those who provide raw, un-organized data to the accounting systems which include both internal and external such as, other departments within the organization (internal), and trading partners (external).
 
Information Users: Information users are the users of the accounting information which include both internal and external users. Such as: top management and general users within the organization (internal), banks and government (external).
 
Middle Management: is responsible for implementing the strategic decisions of top management. Middle managers make tactical/short-range decisions.
 
Non-management Employees: who include production, clerical, and staff personnel.
 
Stakeholder: Stakeholder is a person, group, organization, or system who affects or can be affected by the organization’s actions
 
Small to Medium Organizations: Small to medium organizations (SMEs) are companies whose headcount or turnover falls below certain limits.
Top Management: Executive or senior management includes the highest management positions in an organization.
 
1.10    PROFILE OF THE ORGANIZATION USED FOR THE STUDY
1.10.1 First Bank Plc
First Bank Plc is one of the oldest financial institutions in Nigeria and was the first bank to be established in West Africa. The bank was incorporated as a limited
liability company in March 1894 and was listed on The Nigerian Stock Exchange in March 1971. Following the Central Bank of Nigeria’s (“CBN”) induced industry-wide consolidation in 2005, the bank acquired its merchant banking subsidiary, FBN (Merchant Bankers) Limited and MBC International Bank Plc. The bank offers a wide array of financial services to a diverse customer base through its local and offshore offices, including 465 branch offices country wide and 532 ATM’s. In addition to growing organically through new products and branch development, other viable domestic acquisitions are being explored as the Bank marked its 110 years of existence during which it pioneered the art and science of modern banking in the country.
 
First Bank of Nigeria maintains a subsidiary in the United Kingdom, FBN Bank (UK), which has a branch in Paris. The bank also has representative offices in South Africa and China. In October 2011, the bank acquired Banque International de Credit (BIC), a leading bank in the Democratic Republic of Congo (DRC).  (http://www.firstbanknigeria.com/Portals/2/pdf/Rating_rep/FirstBank%20-%20GCRFinal%20%20rpt%2008.pdf)
 
1.10.2     Zenith Bank Plc
Zenith Bank was established in May 1990. It became a public limited company in July 2004, and had an initial public offering on the Nigerian Stock Exchange (NSE) on October 21 of that year. Also in 2004, credit rating agency Fitch Ratings identified its credit as AA- on their long-term scale.
Zenith Bank Plc is a Nigeria-based commercial bank engaged in the provision of universal banking services to corporate, commercial and individual customers. The Bank provides services as savings and current accounts, treasury and financing services, investment banking, mortgage loans, trade financing, fund management and investment banking, import and export finance, and cash and liquidity management services to the wholesale and retail market, among others. In addition, various types of credit and debit cards, Internet and telephone banking, as well as money transfer services. The Company operates a number of subsidiaries include, among others, Zenith Realtors Ltd, Zenith Registrars, Zenith General Insurance, Zenith Pension Custodian, Zenith Securities, Zenith Life Assurance, Zenith Capital, Zenith Medicare and Zenith Trustees Limited.
 
1.10.3   Nigeria Breweries Plc
Nigerian Breweries Plc (NB), incorporated in 1946, is the pioneer and largest brewing company in Nigeria with current annual production capacity estimated at 10 mn hectolitres. The company is engaged in brewing, marketing and selling of alcoholic and non-alcoholic products such as lagers, stouts, non-alcohol malt drinks and soft drinks. Nigerian Breweries Plc (NB) is a subsidiary of Dutch brewer, Heineken N.V. and distributes its products across Nigeria. NB offers beer under the Star and Gulder brands, lager under the Heineken brand, malt drinks under the Maltina and Amstel Malta brands, premium stout under the Legend brand, and sparkling soft drinks under the Fayrouz brand. The company operates five breweries in Lagos, Aba, Kaduna, Ibadan and Ama regions in Nigeria, as well as a malting plant in Aba region providing a geographical spread across the country, albeit bias for cities in the southern part of Nigeria. It classifies its sales regions into six units namely, Lagos, Central, East, West, North, and South. The company is headquartered in Lagos, Nigeria. Listed on the Nigerian Stock Exchange in 1990, NB is one of the most capitalized and actively traded companies outside the banking and insurance sectors.

ANALYSIS OF MANAGEMENT OF REVENUE GENERATION AND ACCOUNTABILITY IN PUBLIC ENTERPRISES IN NIGERIA (A  STUDY OF SELECTED PARASTALS 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.
CHAPTER ONE
INTRODUCTION
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
 
1.1 STATEMENT OF PROBLEM
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 government.
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 government,
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.
 
1.2  RESEARCH QUESTIONS
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?

1.3     OBJECTIVES OF THE STUDY
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.

• HYPOTHESES

In view of the problem and the objectives it seeks to achieve the following hypotheses are formulated for this study.

• : Effective revenue management and accountability is not dependent on profitability.
• Mode of disbursement of grants to parastatals is not significantly affected by revenue generation and accountability in Nigeria.
• Inadequate disclosure of financial information is not significantly affected by revenue generation and accountability in Nigeria.

 
1.5 SIGNIFICANCE OF THE STUDY
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 sub-sector 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.
 
1.6 SCOPE OF STUDY
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.
 
1.7     LIMITATIONS OF THE STUDY
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.
 
1.7 DEFINITION OF TERMS MANAGEMENT
(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).
 
(ii)     ACCOUNTABILITY
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).

• 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 .
• PHCN-Power Holding Company of Nigeria which was formally known as National Electric Power Authority (NEPA)
• N1TEL-Nigerian Telecommunication Limited GOBs – Government Owned Businesses.