recent occurrence of financial malpractices in the service producing companies
has made the country economic condition to be deteriorating on a geometrical
bases, this has really caused an adverse effect on the entire economy.
Financial malpractices are stooge that has to be up rooted and totally eradicated;
else the entire sector of the economy will be eaten up by the menace.
research study is embarked upon to evaluate the effect of financial malpractice
on the service producing companies in Nigeria, this study also provide the
necessary solution that can be adopted to
solve the problem of financial malpractice on the service producing sector of
this, questionnaires were distributed to the staffs and customer of PHCN, which
are analyzed and the used as the main research methodology for concluding on
the research findings.
CHAPTER ONE: INTRODUCTION
TO THE STUDY 1
OF THE STUDY 5 – 6
OF THE STUDY 7
OF HYPOTHESES 8
FOR THE STUDY 9
OF THE STUDY
OF THE STUDY 10-11
OF THE STUDY 10
OF TERMS 11-
CHAPTER TWO: LITERATURE REVIEW
2.1 CONCEPTUAL ISSUES 14
2.2 MEANING OF FINANCIAL MALPRACTICES 14-16
2.3 MEANING OF CORRUPTION 16-19
2.4 FORMS OF FINANCIAL MALPRACTICES 19-22
2.5 FORMS OF CORRUPTIOIN 23-29
2.6 EFFECT OF FINANCIALMALPRACTICES IN THE SERVICE COMPANIES 29-31
2.7 EVILS OF FINANCIAL MALPRACTICES IN THE SERVICE COMPANIES 32-36
THEORETICAL FRAMEWORK 36
EFFECTIVE CONTROL OF CORRUPTION 36-43
CODE OF CONDUCT, ETHICS AND FINANCIAL MALPRACTICES 43-45
FINANCIAL MALPRACTICES 46-49
THE STRUCTURE OF NIGERIA SERVICE COMPANIES 49-50
EMPERICAL EVIDENCE 50
FINANCIAL MALPRACTICES CASES IN NIGERIA 50-53
2.15 BILLING SYSTEM IN P H
C N 53
2.16 PRIVATIZATION OF POWER
HOLDING COMPANIES OF NIGERIA 54-56
CHAPTER THREE: RESEARCH METHODOLOGY
RESEARCH DESIGN 57
SOURCES AND TYPES OF DATA 57-58
INSTRUMENTS OF DATA COLLECTION 58
POPULATION OF THE STUDY 58
SAMPLING AND SAMPLE SIZE 59
METHOD OF DATA ANALYSIS 59 - 60
CHAPTER FOUR: DATA ANALYSIS AND
QUESTIONNAIRE DISTRIBUTION AND COLLECTION 61-63
4.1.1 RESPONDENTS PERSONAL PROFILE 63-98
4.2 TEST OF HYPOTHESIS 99
4.2.1 HYPOTHESIS I
4.2.2 HYPOTHESIS II
CHAPTER FIVE: SUMMARY, CONCUSION AND
TO THE STUDY
malpractices are enemy to environment, environmental protection is not
effective where financial malpractices in the public sector of an economy is
pervasive and quality of life degraded.
This study will give an overview of the Nigerian’s recent experience in
the context of economic reform programme.
It will discuss the possible cause and effect of financial malpractices
and evaluate, such financial malpractices, which are seen to have rocked to
socio-cultural, political practice and economic situation of the country. Corruption is an effort to secure wealth or
power through illegal means for private and personal gain at the public expense
for private benefit. Corruption as a
phenomenon is a global problem and exists in a varying degree in different
countries (Agbu, 2001). Corruption
practices are not issues that just begin today but its history is as old as the
world itself. (Lipset and Lenz,2010). However, the magnitude is not equal in every
society as some countries are more corrupt than others. Orwell George in the
widely read book; Animal farm: said “All animals are equal, but, some animals
are more equal than the others”.
epileptic power supply in the economy reduces the living standard drastically and
at the same time increase the cost of production in the country. In 2010, President Good Luck Jonathan
revealed that generating power from generator add more than 40 percent to the
cost of goods and services in Nigeria and that Nigerian spend about N1.95trillion
yearly running generator. In a recent
published report by British Broadcasting Corporation (BBC). It was said that Nigeria lost 15Billion Dollars per
year to corruption which means between 2001-2011 Nigeria has lost 150Billion
Dollars in a span of 10years. In the
final report of the Nigeria corruption
and survey study (June, 2011) the following institutions in Nigeria are
rated based on their level of corruption.
and state assembly
and state executives
Nigeria as a
nation practices a mixed economic system whereby both the government and the
private sector play an active role in the economy. However, despite the recent privatization
policy of the government, the public sectors still hold a substantial part in
the economy. A financial malpractice
which is one of the most dangerous social ill of any economy is pandemic in Nigeria and has
defied all necessary medicines. (Dike,
2009). For instance, to know how
pervasive financial malpractices is, in our country the $12.4billion Gulf War
oil windfall, during IBB regime far back 90’s, in 2007, the members of National
Assembly decided to probe a contract of N23billion awarded by former President
Olusegun Obasanjo, four days to the inauguration of Alhaji Umaru Musa Yar
Adua. All this cited cases and many more
nothing is been done about it. It is all
about chop I chop game financial malpractices have been broadly defined as the
use of personal deception in the misappropriation of funds of a given entity. It is also the violation of established rules
for personal gain. (Sen,2008). Conclusively, by the end of the evaluation of
financial malpractice in the service producing companies of Nigeria which
is to be carried out and discussed by this study, a lot of suggested solutions
will be given to reduce the financial malpractices and corruption at large
which is the bane of Nigerian economy.
This will also impact to the future positive change in the performance
of the private and public sector of the economy.
OF THE STUDY
problem in the evaluation of financial malpractices in the service companies in
economy is that, corruption has eaten deeply in to the society at large. The Nigerians that are occupying the top political
positions in the country are, highly corrupt. During the inaugural, speech of the former
President Olusegun Obasanjo, He vowed, to tackle, financial malpractice, and he
established different, commissions, act and laws in that respect e.g. EFCC,
ICPC, money, laundering act e.t.c. he said “No society will achieve its
potential where it allow financial malpractices its full blown cancer as it is
in Nigeria”. (Dike,2009). Also, the
leaders of our government parastals that are, supposed to be the machinery
against the menace of financial malpractices are not only involved in it but
ranked as the 4th most corrupt in the country by the Nigerian
Corruption and survey study.
research study will solve the problems identified as highlighted in the
background to the study.
1.3 RESEARCH QUESTIONS
research questions are used in assessing the problem of the research study;
To what extent are financial malpractices
hindering the development in the Power Holding Company of Nigeria (PHCN)?
Does the Nigerian Government encourage corruption
by the amount they are paying as salary to the service company workers?
Is the low the investment attraction in Nigeria caused
by the role of corruption in the Power Holding Company of Nigeria (PHCN)?
To what extent is the under – development of
power Holding Company of Nigeria
caused by injustice in the system?
Is there any basic standard for recruiting
personnel into the service companies of Nigeria?
Are the roles of financial malpractices in
Power Holding Company of Nigeria
development constrained by psychological loss of faith in the government?
OF THE STUDY
main objective of this research study is;
evaluate the extent of financial malpractices in the service producing
companies of Nigeria. Other specific objectives to be pursued are:
examine the extent of financial malpractices in the Power Holding Company of Nigeria.
evaluate the cause and effect of financial malpractice in the service companies
of the entire economy.
have a rational resolution on this research study thereby assisting the
populace to develop the economy on the long run.
make recommendation based on the research findings on the impact of financial
practice, on the service providing companies in Nigeria.
following hypotheses is stated for the purpose of this research study;
I - Hypothesis I
Hypothesis, (Ho): Power Holding Company of Nigeria development is constrained
by the retro-active role of financial malpractices in the public sector.
Hypothesis (Hi): Power Holding Company of Nigeria development is not
constrained by the retro-active role of financial malpractices in the public
Hypothesis (Ho): There is a negative implication on service companies in Nigeria caused
by corrupt leaders and financial malpractices.
Hypothesis (Hi): There is no negative implication on service companies in Nigeria caused
by corrupt leaders and financial malpractices.
FOR THE STUDY
are many Nigerians that have seen reasons in embarking on this research study
of evaluating financial malpractices in different sectors, of the economy. Many of those that carried out this
researches are renowned in the country they include Chinwa Achebe, (2005). Gain Fawemi (2007) and the latest research
carried on by SAN, Afe Babalola, (2011).
The above mentioned researcher did well but they are unable to complete
some aspect of their research, this include, privatization of PHCN, Billing
system, money laundering cases, corrupt politician cases and some outcome from
litigation which are to be covered in this study.
study will also made known the way out of the cankerworm of financial
malpractices that are pervasive in the Nigerian economy.
OF THE STUDY
significance of this research study cannot be over emphasized as it analyzes
the effect of financial malpractice in the Nigeria service companies. It will assist many stakeholders in the
economy like entrepreneur, students and telecommunication companies to mention
but few by reducing their cost of production; it will also lead to increase in
the public trust in government and its institution.
OF THE STUDY
scope of this research study will be limited to 2001 to 2011. It will cover the happenings within the Power
Holding Company of Nigeria
between 2001 – 2011, which is a span of 10 years.
OF THE STUDY
chapter one cover the background of the study, problems of the study, research
questions, objectives of the study, statement of hypothesis, justification,
significance, scope and definition of terms in the study. Chapter Two is the,
literature review, where conceptual issues, theoretical frames work and
empirical evidences of the study are discussed.
three cover the research methodology that will be used for the study. Chapter four is data presentation and
analysis while chapter five is summary, conclusion and recommendation.
is an improvement relating to trade, industry and money in circulation of an
Growth:- This is an increase in the size of an
economy in terms of infrastructural facilities, standard of living and industry.
Evaluation; This is the calculation of the extent,
of something or the impact, of the issue in question.
Economy: Is the system by which a country’s
money and goods are been produced and used?
Product (GDP): This is the value of output of goods
and services produced and provided in an economy in one year
companies:- These are the organization that
provides for basic need of the public e.g. Power Holding Company of Nigeria
Malpractice: Failure to act correctly or legally
when doing your job or responsibility assigned to you.
Menace:- Something that is likely to cause
Phenomenon: Something that exist and that can be felt,
especially something which is unusual or interesting.
Empirical: Based on what is experienced or seen
rather than on theory.
Retro-active: Law that has effect from the day it
was been approved.