ABSTRACT
This research is aimed at finding the effect
of corruption on effective service delivery in the public sector using Power
Holding Company of Nigeria (PHCN) as a case study. The study seeks to examine
the reforms, and effect on electric power supply reliability and stability in
Nigeria. The major problems affecting the model been pursed especially in a developing
country like Nigeria were also examined.
Over the past 25 years, electronic power
sector has witnessed slow and steady decline leading to near failure of the
system in 1999 at the beginning of the immediate past civil Government. The
federal Government of Nigeria using national council of privatization (NCP) in
1998 had embarked on electric power sector reform program which gave birth to
18 companies under the auspices of PHCN. In February 2007, government of
Nigeria (GON) awarded contracts of about $875 millions dollars across the
country in actualizing some of the goals in the power sector reforms.
The study opined that if all identified
problems militating against PHCN meeting the energy demand of the country is
met by reforming the energy sector, in no time distance time Nigeria can boost
of an electric power supply industry (EPI) that can meet needs of its citizens
and place the nation as one of the industrialized country in the world. Data to
be used in this study will be obtained from employees of PHCN and the general
view of people through chi-square. At the end of this study, it would be
discovered that corruptions has negative effect in service delivery system as
well as in the economy at large. Various recommendations will be made on how these
problems could be solved.
TABLE OF CONTENT
Title Page 1
Abstract 2
Table of Content 3
CHAPTER ONE: INTRODUCTION
1.1 Background Information of the
Study 5
1.2 Purpose of the Study 9
1.3 Significance of the Study 10
1.4 Scope and Limitations to the
Study 11
1.5 Research Questions 11
CHAPTER TWO: LITERATURE REVIEW
2.1 Theoretical Framework 13
2.2 Historical Development of
Power Holding Company
of Nigeria (PHCN) 13
2.3 Transition to Competitive
Energy Marketize Policy
Issues and Imperatives 17
2.4 Concept of Corruption 21
2.5 Remedies to Effective and
Efficient Service Delivery
in the Public Sector 32
2.6 Summary 33
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 34
3.2 Sample and Sampling Technique 34
3.3 Data collection Instrument 35
3.4 Administration of Data
Instruments 35
3.5 Validity and Reliability of Instrument
for Data collection 36
CHAPTER FOUR: PRESENTATION
AND ANALYSIS OF DATA
4.1 Introduction 38
4.2 Questionnaire Distributed to
PHCN staff 38
4.3 Hypotheses testing using
Chi-square Technique 56
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction 64
5.2 Summary 64
5.3 Conclusion 67
5.4 Recommendation 68
5.5 Suggestions for Further
Research 68
References 71
Questionnaire 72
CHAPTER ONE
INTRODUCTION
1.1 Background
Information of the Study
Government has
we all know are the major provider of essential needs to the masses at little
or no cost. Corruption has been the major factor affecting the efficient
service delivery in the public sectors. It has been described as the single
line that defines the problems of the country, poor service delivery in the
public sector.
Over the years,
power has been supplied by National Electric Power Authority (NEPA) now PHCN
has been very poor, this had caused and might continue to cause disappoint on
the masses because it failed to meet their respective expectations. The public
sector was largely characterized as ineffective and not sufficient by Chief
Olusegun Obasanjo.
In the early
1960’s, the Niger Dan Authorities (DAN) and electric cooperation of Nigeria
(ECN) then ,immediately after the Nigeria civil war, the management of ECN
changed its nomenclature to National Electric Power Authority, currently known
as Power Holding Company of Nigeria came to into effect on 31st may 2005
saddled with the responsibility of supplying power electricity in Nigeria.
A number of
scholars have described the principle driving the forces behind the service
delivery in public sector.
Capital Scarcity: in the 1980’s, there was a recognized shortage of
capital to finance the required expansion of power supply.
Economic Inefficiencies: in most developing
countries like Nigeria, the power sector has troubled by high technical losses,
a lack of cost recovery pricing, poor maintenance, low equipment reliability,
high level of corruptions, a crippling non-payment problem, mounting these
factors have resulted in the commercial instability of power sector in Nigeria.
Persistent Poverty: The lack of reliable power supply and other
infrastructure has had a notably adverse impact on industrial growth and low
development and this contributed to perpetuating poverty in Nigeria.
Debt and deficit: The power sector in Nigeria is saddled with large
debts accumulated from years of not changing cost recovery tariffs, not
collected accrued debts from all customers, not disconnecting who do not pay
but collecting bribe which would not have effect in the account of the
management.
Corruption: Unethical practices and behavior that are contrary to
the practice commonly advocated by the constitution or which include looting
public fund “lootocracy” misappropriation, money laundering abuse of the
office.
The below
diagram described the major factor affecting the effective delivery service in
the public sector.
In 2008, power
generation by the PHCN dropped by 800 megawatts from 3,300 now to
2,500mw.Consequently, PHCN to 12 hourly zonal powers rational which was in
force before it was later suspended. The vice chairman and Chief executive
officer(CEO) Mr. Sulaiman Bello stated that the current facilities within the
organization can give the country 4,000mw of electricity if the Nigeria gas
company(NGC) sustains supply of natural gas to its thermal plans across the
country- (Business day: fast news Nigeria and steels, 17 November 2008).
Presently, power
generation is mainly from plants (about 6190) while hydro power generation is
about 3190. Most of the generating assets in the public power sector are old,
between 18 and 43 years. Lack of timely routine had caused significant
deterioration in plant output and is a key explanatory factor in the lingering
electric power crisis.
According to the
industry watchers, more than two decades of poor planning and under investment
had left a huge supply deficit and there was no new infrastructure in over
decades despite rapid population growth and rising demand power. The sector was
at the brink of collapse, average daily generation in 1999 was 1,750mw (almost
to 10 years, the situation was not remarkably different as available capacity
output is still less than 2.5gw). Add this to the fact between 1990 and 1998,
no new capacity was added. The focus has been on rehabilitation of existing
infrastructure.
Vividly,
corruption is not the only factor affecting effective service delivery in the
public sector and basically in PHCN also the inability of power management
planning which make it possible for its officials to exploit and exploring its
resources. Before the payment of electricity bill through banks, there was no
adequate management internal control of revenue receivable and expenditure
incurable. For several years, despite consistent perceived cash investment by
the federal government of Nigeria, power have been the standard for the
Nigerian populace and are now seen as normal by the citizens of the country.
Corruption
occurs most in public service which hindered efficient and effective service
delivery. More so, one would rightly justified that to say that the masses and
the public officials contributes to how service delivery is insufficient, It
is, therefore, the inherent for this study to examine the relationship between
corrupt practices and quality of service rendered in the public sector.
1.2 Purpose of
the Study
(i) To identify the causes of corruption in the public sector of the
Nigeria economy.
(ii) To examine the effect of corruption on service delivery in the
public sector and on the economy at large.
(iii) To highlight the adverse effect of
insufficient power supply in the Nigeria economy.
(iv) To know that corruption is the major factor affecting quality
service delivery in the public sector.
(v) To recommend possible solution to the problem of corruption, low
rate of power supply and its effect in the economy as a whole.
1.3 Significance
of the Study
It has been
clearly stated and noted that government in any country is about providing
essential services to the masses through the ministries and extra-ministerial
departments (i.e. ministry of power and steel, ministry of education) etc in
order to achieve increasing efficiency and effectiveness in service delivery.
However, these
might not be easy to achieve where corruption exist thus, this research is
aimed at suggesting reasonable solutions at reducing corruption to its lowest
minimal in order to enhance adequate service delivery system. In addition, it
is understood that corruption has adverse effect on service delivery in the
public sector but there are some other factors hampering effective service
delivery. Take for instance, the power holding company of Nigeria lacks
internal control, monitoring, accountability and adequate planning within its
staffs which brings about ineffective service delivery e.g., low current and
inconstant power supply.
The knowledge
gained from this research would help public administrations to be more
effective and efficient in discharging their respective duties. It will also
serve as a basis for further research to carry upon and make positive change on
service delivery system in the public sector.
1.4 Scope and
Limitations to the Study
This study is
limited to Power Holding Company of Nigeria (PHCN). The issue of electric
generating capacity is briefly discussed and the issue of privatization of the
institution that is PHCN is not covered. The study has identified areas of
factor affecting corruption and service delivery in the public sector and
subsequently provides possible solution using PHCN as a case study.
1.5 Research
Questions
This study
attempts to the find solutions to the following questions which had prompted
the research.
(i)
What are the causes of corruption in the public sector of the
Nigeria economy
(ii)
Is there any relationship between corruption and quality of
service delivered in the public sector?
(iii) What is the possible
solution to the problem of corruption in the country?
(iv) What effect does corruption
have on the economy as a whole?
(v)
Are there other factors apart from corruption that may hamper
effective service delivery?
(vi) How can service delivery be
enhanced?
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