In most developing countries including Nigeria, government participation in economic activity is usually significant. One of the ways through which government has intervened in Nigerian economy is through the establishment of public enterprises and statutory bodies operating services of an economic or social character on behalf of the government.
Since the colonial era, especially after independence in 1960, Nigerian public enterprises have witnessed a steady growth unit recently. Its Olisa (1988:133) pet it. Beginning as a trickle in the period between this era of the Second World War and Nigeria attainment of independence the creation of public corporations had risen to flood level since independence and his maintained a steady growth. The rational behind the establishment of public enterprises in Nigeria are many. Some of the reason include: generating revenue, they would add to available rational capital for the support of development and welfare programme, making to be controlled by a few individual, it possible for important profitable enterprises to be controlled by a few individual or group, organization certain critical activities national survival and economic stability and providing employment opportunities (Ademolukun 1983). However, after a long period of growing, starts intervention in the Nigerian economy through public enterprises, the and of 1980’s onwards had witnessed a reversed which has sometimes been dramatic in public opinion and therefore public policy.
This has been brought by the persistent losses which state enterprises that have been running over fears. Consequently, there has been a willingness to look at alternative policy strategies for the achievement of economic development. At the forefront of these strategies is the minimization privatization of public enterprises.
In Nigeria, public enterprises are engaged in a while spectrum of economic activities including agriculture, mining, construction, manufacturing, commerce and services. The classification of public enterprises in Nigeria had been made according to varieties of criteria by different authorities. The public service review commission (1975:101) classified public sector int.
Regulatory of service body
Commercial ad industrial enterprises
Being a mixed economy, individuals also own and operate private enterprises. A firm classified as private enterprises when it is founded and managed by an individual and Ora group of individual. These firms are expected to be registered in the local government within which they operate.
The rationale for the establishment of private enterprises are numerous just like establishment of public enterprises. T hey include amongst other. Provision of employment opportunities. Generating income for the owner of the enterprises. Government interest in profit growth of the enterprises which determine the tax liabilities of the firms, improve the performance of the public sector through competition. Moreover, the general public is concerned with the contribution which makes towards social upliftment which is exhibited to the environment in which the business is loaded and its willingness to contribute to the development of the environment.
The activities of the public enterprises have been on the increase in resent times which necessitated the introduction of the accounting practice to check and monitor the financial activities of these enterprises. In this book, titled principles of accounting, by Bimage (1985) accounting is defined 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 records were kept in physical quantities. These records came from the Eastern (early) civilization which involved in the countries around the Mediterranean sea such as Mesopotamia, Egypt, Crete, Italy etc. money was recorded as soon as money took the place of barter as a medium of exchange and unit of accounting practice has been closely related to the economic development of the country. If the business organization grows in size and complexity, management and outsiders became more clearly differentiate from the outside groups which include owners of the firm (stock holder) creditors, government employer and the general public.
The differentiation necessitated the need to have accounting department in the enterprises to give accurate financial of the management and to satisfy the outside demands or the general public who are already interested on whether the enterprises in growing or not.
The role of accounting in public enterprises in Nigeria is primarily to ensure accurate accountability in these sector and present the time and fair financial position of the enterprises. The role is of utmost importance in any organization. An organization can only grow or profit when the resources are well managed and effective observed over expenditure. These resource can only be well managed if accounting department of the organization give an accurate financial information to know how ,much the enterprises 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 misappropriation of funds in the public enterprises and improper accountability. These factors have led to a lot of public enterprises going into oblivon. If the government has reorganized the role of accounting, all these febles should not have arisen. No enterprises can move forward without having a well organized financial departments to give accurate financial; information about the firm.
This is because if improper accounting records are not minimized or where possible eradicated these is bound to be cases of public enterprises failure. Consequently, staff of such enterprises will forced out of their job. This will result to economic and social; activities in the society. The study will make use of federal ministry of labour and productivity as the case study
1.2 THE HISTORICAL DEVELOPMENT OF FEDERAL MINISTRY OF LABOUR
The Federal Ministry of Labor and Productivity has been in existence (with different names) since 1939, with the central purpose of ensuring cordial relations between workers and employers in the public and private sectors. The body was created after the start of World War II to coordinate resources for war efforts, with first one and then two Labor Inspectors attached to the Governor’s Office. With growing worker agitation over cost Of living allowances, the Department of Labor was established on 1 October 1942. It was headed by a Commissioner and two Labor Officers, and was charged with dealing with labor movement issues, ensuring the orderly development of Industrial Relations and enforcing protective legislations. The organization grew as the war progressed, with offices opened in the industrial centers of Enugu, Kaduna and Lagos. Later a Ministry of Labor was created in addition to the Department of Labor, and the two were merged on 1 April 1958. After Independence in 1960, the Ministry has grown steadily, renamed the Federal Ministry of Employment Labor and Productivity in 1979 and the Ministry of Labor in January 2007.
ORGANISATION OF FEDERAL MINISTRY OF LABOUR
The outward-facing divisions the Ministry of Labour are Trade Union Services and Industrial Relations; Employment and Wages and Inspectorate. The Trade Union Services Division formulates policies on trade union organizations and manages disputes and complaints. It also assists in worker’s education, and keeps records on trade unions and their activities. Internally oriented departments are Human Resources; Finance and Supplies; Policy, Analysis, Research & Statistics.
The Ministry is responsible for several parastatals (government-owned agencies): Michael Imoudu National Institute For Labour Studies (MINILS), Nigerian Social Insurance Trust Fund (NSITF), National Directorate of Employment (NDE), National Productivity Center (NPC), National Industrial Court and Industrial Arbitration Panel (IAP)
- STATEMENT OF PROBLEM
Obviously, every private and public enterprises in Nigeria has their accounting department. And there are increasing cases of financial mismanagement in virtually all the public and private organization in Nigeria. The problem of this study lies on how the managers of these enterprises are able to recognize the role of accounting in their enterprises so that these cases of improper accountability will be minimized or if possible its total eradication in our society
- PURPOSE OF STUDY
These studies include investigating the role of accounting in the control of public enterprises in Nigeria. The purpose of this study include among other others.
- To determine the extent to which accounting is generally affects the economic activities of the public section in Nigeria
- To examine how managers adequately and efficiently apply the role of accounting in their organizations.
- To disseminate certain factors that affects the accounting departments of most organizations which makes them not to function as expected
- To determine government policies which aid to promote accounting in all public enterprises in Nigeria.
- RESEARCH QUESTIONS
- To what extent do accounting records generally affect the economic activities of public enterprises?
- Do managers adequately and efficiently apply the role of accounting in their organization?
- What are the factors that have negative effect on accounting departments of most organizations which make them not to function effectively as expected?
- What are those government policies which aid to promote accounting in Nigerian public enterprises?
- SIGNIFICANCE OF THE STUDY
In this study, the researchers have set out to examine the role of accounting in the public sectors in this country. Nigeria with the aid of highlighting the inherent problem encountered in the account departments of most organizations. It is expected that this work will be of interest to the owners of business enterprises, the government, students and the general public.
To shareholder, owners of enterprises, interested persons and the governments, this study is expected to enkindle their interest the more and they will take note of various recommendations mentioned here and help steer the management team towards forming a sundry organizations to present accurate financial information on their firm. This study will also help to serve as literature to individual or corporate bodies who want to carry on further research on the role of accounting in the public sectors in Nigeria.
- SCOPE AND LIMITATION OF THE STUDY
Scope of the study shows extent of coverage done in the study. The research topic suggest a study on the role of accounting in the public enterprises in Nigeria. The focus of the study is on federal ministry of labour and productivity of Nigeria. I take this to be a fair representative of Nigerian public enterprises that is either avoidable or hand to come by
There are factors as constraints that are normally follows this research work, some of them are
- TIME: this which was a major problem was adequate not
managed by the researcher. There was not enough time for the researcher to get the project topic, get it approved and within a short time we will be talking about our exams assignment and quiz.
- LACK OF MATERIALS: the unco-operative of most
people working in the library and other offices where the researcher needed to get materials posed great problem to the researcher. Some of the staff do not feel safe letting have access to some materials while other will change you more than double the cost of Photostat before one can get what he wants.
3. FINANCE: Before now our project use to be a joint project of a group of four-ten people but now it has to be on individual student. So finance hinder the projects in one way or the other. Either by transportation to where to get the materials or where to obtain the necessary information.
- DEFINITIONS OF TERMS
MANAGEMENT: Its function centre on decision for planning and guiding the operation that is going on in the enterprises.
ACCOUNTING: accounting is the act of recording, classifying and summarizing in a significant manner and in terms of money, events and transactions which are in part at least financial character and interpreting the result thereof.
FINANCIAL STATEMENT: These are accounting reports issued by a business to described its financial affairs and resuslts of the operations. The financial statements are the end product of the general financial accounting activity.