In most developing countries Nigeria, government participation in economic activating is usually significant. One of the way through which the Nigeria economy is through the establishment of public enterprises. Public enterprises are statutory bodies operating services of an economic or social character or both on behalf of the colonial era. Especially after independence in 1960, Nigeria public enterprises have witnessed a steady growth until recently.
As “o lies (1988.133) puts it.” Beginning as a twinkle in the period between the era of the second world war and Nigeria attainment of independence, and the creation of public co-operation has risen to flood revel since independence and has maintained a steady growth.
The rationales behind the establishment of public enterprises in Nigeria are many. Some to the reason include: generating revenue that would add to available national capital for the support of development on welfare programmes, making it impossible for important profitable enterprise to be controlled by a few individuals or group, organizing certain critical activities for national survival and economic stability and providing employment opportunities (Ademotecum 1983).
However after a long period of growing starts intervention in the Nigeria economy through public enterprises, the mid 1980's. onward has sometimes and put policy. This has been brought by the persistent has been running over the years. Consequently, there has been a willingness to look at the alternative policy strategies for the achievement of economic developments. As the fore front of the sea strategies in the minimization of the state in the economic including privation of public enterprises.
In Nigeria public enterprises are engaged in a whole spectrum of economic activities including agriculture mining, constriction, manufacturing, commerce and other services. The classifications of public enterprises in Nigeria have been made according to a variety of criteria and by different authority. The public service review commission (1975:101) classified.
Public sector into:
- Public utilities
- Regulatory or service body
- Financial institution
- Commercial and industrial enterprises being a mixed economy, individuals also own and operate enterprises.
Affirm is classified a private enterprises when it is founded and managed by an individual and or a group of individuals. There firms are local government within they operate.
The rational for the establishment of private enterprise are numerous just like the establishment of public enterprise. They include among others, provision of employment opportunities, generating in come for the owners of the enterprises government is also interested in profit performance of the enterprises which determines the fax liability of the firm moreover the generate public are concerned with the sense of social responsibility which the business exhibits to the environment in which it is located and its within ness to contribute to the upliftment of the environment.
The activities of the public and private enterprises have been on the increase in resent times, which necessitated the introduce of and accounting practices to check and monitor the financial activities of these enterprises in his book titled, “principles of accounting”, Image (1985 defines accounting as a process by which data relating to the economic activities of an organization are measured, recorded and communicated to interested parties for analysis and interpretation.
The earliest method of accounting in Nigeria was the use of money to record the amount of agriculture commodities like yams, cassava and livestock, which passed from one person to another. The historical development of modern accounting practical has been closely related to the economy development of the country. As business organization grows in size and complexity, management and outsides become more clearly different from the outside group which includes owners of the firm (stock holders) creditors, government employers and the general public.
The differentiate the need to have accounting department in the enterprises to give accurate financial information for use in judging the performance of the management and to satisfy the outside demand of the general public who are already interested on whether the enterprises is growing of not.
The role of accounting in the public and private enterprises in Nigeria is primarily to ensure accurate accounting in these sector and present fine financial position of the enterprises. The role is of utmost important and in any organization. An organization can only grow or make profit when its recourse is well managed. And resources can only be well managed when the accounting departments of the organization give accurate financial information to know how much the enterprise is having. It is only when. This is done that the firm allocate its resources and knows what is to be done.
The role of accounting seems to be more pronounced in the public enterprises. In recent time, there are cases of in appropriation of funds in the public enterprises and improper accountability. These factors have led to a lot of public enterprises going into oblivion. If the government has recognized the role of accounting all these causes should not have arise. No enterprise can move forward without having a well organization financial department to give accurate financial information about the firm.
1.2 Short Background History Of The Case Study Chidex Group Of Company And Power Holdings Nigeria Ltd.
Chidex group of company's is a company charged with overall responding suability of formulating and efficient transportation policies essential for the economic, social and political development of the Nigeria economy. The company is under the leadership of chief John Mice. Who as its managing director has the general responsibility for the assignment of corporate objectives and management of the resources of the company. Another key officer of the chief Account and Mr. Eze Christian. The company started in the year 1990 and has being into is the list of the directors from 1990 Till date
- Engr. Felix okoh 1990-1995
- Mr. Victor O. Ogwu 1995-2000
- Mr. Kema Chikwe 2000-20005
- Dr. Ifeanyi ikeh 20005-2010
- Hon. Dan okeke 2010-Date
In order to achieve its set objectives the company is organized into five (5) departments as stated below Departments
- Personnel management
- finance and supply
- Planning research and statistics
- Transport co-ordination and
Power Holding Nigeria Ltd
This is a development of energy project and has been leading the development of the something coal to sore facility since its inception. The partners each with decades of experience in leadership roles across a broad spectrum of responsibilities ranging from executive and operation management to finance to engineering. The company began as an energy marketer and moved into development of on site co-generation of power at larger industrial sites.
These are some of power holding management:
Robert A Cilpin
— Chief Executive officer he has more than 20yrs experience in the gas and electric industry. He holds a Bs in economics from the University of Missionary and an MBA in entrepreneurialism, from Depanu University graduate college of business.
Stephen B. Show
— Chief financial officer, He is a founding member of power holdings he is an energy industry executive with over 20yrs experience in finance accounting strategic planning and human resources he holds both an MA in economics from Wayne State University and an MBA in finance from Eastern Michigan university.
Robert J .Desisto
— Consenting engineer, He has over 30yrs industrial experience Robert has spent the past nine years in power production and development. He was an original member of power holdings. He has a BS in chemical engineering from North eastern university and an MBA in management from the University of Wisconsin, Oshkosh.
Joseph N Darguzars
— vice president engineering. He has over 35yrs experience in energy project. Holds a BS in Aerospace and mechanical engineering from iuinois institute of technology
1.3 Statement Of Problem
Obviously every private and public enterprise in Nigeria have their accounting department. And there are increasing cases of financial mismanagement in visually all the public and private organization in Nigeria. The problem of this study lien on how the managers of the enterprises are able to recognize the role of accounting in their sectors so that these cases of improper accountability will be minimized or if possible total era- dictation in our society.
1.4 Research Objectives And Purpose
The purpose of this research work is to fine out the role of accounting in the control of private and public sectors in Nigeria with reference to Chidex group of companies and power holdings Nigeria ltd.
- To determine the extent to which accounting generally affects. The economic activities of the private and public sectors in Nigeria.
- To examine how managers adequately and efficiently apply the role of accounting in their organizations.
1.5 Significance Of The Study
In this study, the researcher has set out to examine the role of accounting in the control of private and public sectors in this country Nigeria mostly concerned with chidex group of coy's and power holding company. Nigeria with highlights of the inherent problems encountered in the accounting department of most organizations. It is expected that that this work will be of interests to the owners of business enterprises the government and the public.
To shareholders, owners of the enterprises, interested person and the government this study is expected to kindly their interest the more and they will take note of various recommendation mentioned team towards forming a sound accounting department which would enable organization to present accurate financial information of the firm.
This study will also help to serve as literature to individuals or corporate bodies who want to carry out further research on the role of accounting in the private and public sectors in Nigeria.
1.6 Research Questions
- Has accounting principles has any control over public and private sectors in Nigeria economy?
- What training method can improve the manager's skill, knowledge and experience such that high concentration will be given to the accounting control in private and public sector?
- What will be done so that there will be perfect accountability in the accounting section of any organization?
- What type of accounting standard or technique will be applied to see to the maintenance of accuracy in the accounting control of public and private sector in Nigerian economy?
- How will manager of the enterprises be able to recognize the role of accounting in their sector so that these cases of improper accountability will be minimized or eradicated?
For the purpose of this study following hypothesis are used:
H0: The role of accounting in the control of public and private sectors Is independent on both sectors.
H: The role of accounting in the ant on both sectors.
Ho: Accounting control of public and private sector has effects the economic activities in both sector of the economy.
Hi: Accounting control of public and private sectors has not effects to the economic activities on both sectors of the economy.
1.8 Scope And Limitation Of The Study
The research topic suggests a study on the role of accounting in the public and private enterprises in Nigeria. The scope of this study will focus at companies, private companies and a sole proprietorship, a case of study will feature for chidex group of companies and plan.
1.9 Definition Of Terms
The following terms were used for the purpose of this study.
This is that sector of the economy established and operated by the government or its agencies, distinguishable from the private sectors and organized on behalf of the whole citizens.
This is that sectors of the economy established and operated by individual. Its agencies are totally different from public sectors.
This is the composite activity of collecting analyzing recording, summarizing, Reporting and interpreting the through financial position or transaction of any organizations or government units.
This is state of forgetting or being quite forgotten i.e. to show that if any organization fail to give proper accountability of the financial position it will be forgotten.