Full Project-ACCOUNTABILITY AND BUDGET IMPLEMENTATION IN NIGERIA A CASE STUDY OF MINISTRY OF FINANCE ENUGU

As a result of rapid increase in the socio-economic problem of this nation and also millions of naira wasted at project sites and the collapse of our economic sector , the writer decided to survey the avenues in which these wasted funds could be curtailed and our economic problems ameliorated. It was assumed that most of this problem arose as a result of poor budgetary and economic policies implementation for this the writer introduced the study in chapter one of this thesis with a clear statement of the problems inherent in poor budgetary plans implementation. In chapter two there was an effort made to give the definition have one thing in common that is budget. All the definition have one thing in common that budget is an estimate and refers to the future. The major causes of non-budgetary implementation is also stated in this chapter. From other related literature, the writer could clearly give an appraisal of the proper accountability in some of our banking sectors. Here some of these failed banks were used as an example of what accountability should be in our economic sector. Chapter three stated the designed and method of investigation. Chapter four had gone through analyzing all of these data collected, the questions the questionnaire were analyzed one after the other with number and degree respondents that affirmed to a particular answer given and vise versa. Chapter five was the last chapter that contains the findings, conclusions and recommendations.

CHAPTER ONE

1.0 INTRODUCTION

For the past ages, man as a rational and divine animal has been struggling with the procurement of reasonable standard of living and the ways of managing his expected maximum utility (profit). The eventful development of a well organized society gave birth to the order of the day, government had the right to interfere with the economic process to protect the interest of the nation. During the 18th century Adam smith and other great authors came out with the system of laessez fair. The system suited its own period but the general depression of the 20th century shoed that it was not after all an economic panacea. People have to look for other economic solutions. At this point, the economic scientists have to enter into the fields and make researches.

Thus, it was during this time that Keynes one of the great researchers, came out with his own postulation. To be precise during the 1930’s Keynesian economic developed and emphasized the cyclical movement of the economy and the need to temper such movement by artifices manipulating the troughs and depression in the cycle in order to facilitate a better economic order. In fact it was the policy implication of Keynesian economic that have contributed to the trends which ld to economic planning and budgeting as a tool in political administration.

In Nigeria so many budgets have been pronounced and many of them are policies. All these budgets and policies are made to Nigerians standard of living which is presently nothing to talk about. We all fully experience the poor living standard of the citizens from the date of the nations. Independence till present as government promisingly budgets to right all the economic errors. For this care budget in Nigeria as whole have traditionally promised to tackle. The primary socio-economic crisis facing the nation as thing that are auxiliaries to the good standard of living and social development. But the greatest problems facing Nigeria is that the policy direction and implementation of these budgetary plans have always fallen short of a set standard.

In summation therefore, most of the annual budgets in Nigeria could not achieve the set up standard which is always their aims and objectives. A very important example is the 1988 budget which was set up to achieve a non-inflationary growth in the economy yet it failed hence an inflation of 25% as experienced in the economy the very year. In short, inflation destabilized every sector of economy say household, private sectors and public sectors. These price inflationary trends and other factors such as private and public funds embezzlement have set the pace of development derailed in our society.

In order to find the solution to out budgetary economic problems one has to look inward and study the factors that cause the crisis in our economic budget. The type of people and environment could determine the type of economic management to be used to salvage the nation from the economic depression, which she has been enslaved of. What ever may be case, it is the solution that we nee and want and not the volume of idealisms and metaphases. The implementation of these annual budgets is our concern.

ACCOUNTING: Accounting entails responsibility answerable for or held charge. In this case, the question is that, “Is there any accountability in our private and public sectors from the binging of our independence till this very moment? This word accounting has been very vital in the restructuring of any economic system of any nation. The issue of non accountability have caused a lot of problems right from the start and fall of any nation. The issue of problems right from the start and fall of any nation. The doom in our banking sector and other financial institution are matter of attention. Is ir the failed contacts failed parastatals and even the external and internal crises in our business sectors. All these and any other embezzlement problems that rate the country have made the writer to probe into some of the matters and look for possible solution.

1.2 STATEMENT OF PROBLEM

Since independence, so many budget have been made ranging form the federal down to stated and local government areas. These budget when made to follow a method of plans and principle of implementation. The question is “Why can’t the volume of budget announced annually in the country are not implemented” the issue is that all the budget made in Enugu follow a technique and formulated method of implementation. Another problems is to know if the implementation are the proper ways to follow. The means by which the funds for the realization of this budgets are sourced, the source of this funds or other assets to the units (government) and the use (application) of these funds sourced for into the budgeted expenditures takes us to the topic called “accounting and budgetary implementation in Nigeria”. We must take it that the most stressing visible aspect administrative in capacities in poor countries is difficult in accountability and implementing budgetary and development plans. Many a times, projects are badly conceived, favorable given to wrong and incompetent hands, under estimated and times of completion are underestimated and the result will be a loss. Thus, incompletion and abandon cut in the economic sector. Also the frustration in trying to identify suitable projects and carry them out successfully to a final stage of completion are seen as a major stumbling block to plan implementation and development in Enugu state.

Other related problems of this study are those caused by improper execution of budgetary plans and poor accounting of government fund. This is based that all plans are always militated by the problem of implementation. Short instance, the valoom project designed to give Nigeria a list communication links even with rural areas has been an agonizing. On February 12th 1976, this project was signed at the estimated value of #89,824.018. but it has stayed up to many years without completion. Thus, the improper accountability and inability to implement the budgetary plans has been our great terror in terms of project implementation.

1.2 OBJJECTIVE OR PURPOSE OF THE STUDY

Before the writer choose this topic, he has some aims and objectives clearly in mind. The objectives are fully itemized as follow.

a. Scrutinization: To scrutinize some of the budget made in Nigeria with reference to Enugu state and find out how the budgetary plans implemented affected the state and the nation as a whole.

b. Searching related literature: The writer has in mind of searching related literature especially those of other countries and finding out ways through which budgetary implementation can be best effected.

c. Accountability: Accountability which has eaten the economic heart of this nation is also a case of our study. The distressing of our banking systems, the great frauds in different public sector and the failure of many contacts calls for a serious research.

d. Policies and programmes: The writer has decided to look for a management policy and system that can organize and boost the economy of this nation.

1.3 THE IMPORTANT OR SIGNIFICANCE OF THE STUDY

The nation is presently suffering from serious economic crises. Our political economy is more than complex and confusing people only exist and not living. The days are difficult. The populace are scared and cry for help. Bad economy had fried the fresh of the people. Let us look at some of the benefits that could be derived from the study in relation to the solution to the above problems.

a. It will determine whether budgetary plans if well and effectively implemented could help in the restructuring of the economy.

b. It evaluate the role played by every top management official in budgetary system to know if they are adherent to set up plans and standards.

c. The study will determine the roles of budget as a tool for efficient and effective management of resources.

d. The study will help researchers on budgetary plan implementation and effectively act as a touch light to the government in their management system.

e. It will evaluate the accounting and suggest some management systems and policies that could help our economic managers to boost our economy and remain accountable.

1.4 STATEMENT OF HYPOTHESIS

Hypothesis serves as guided for the researcher in the entire process of research endeavor and they trim the main line of his study. They assumed answer to the principal question of the study, the correctness of which he asses in the course of his study.

Hypothesis are neither proved nor improved, accepted or rejected, that is a matter of future. In essence hypothesis interpose between a statement of the problems and solution of the problems.

1.5 SCOPE OF THE STUDY

In order to examine in detailed the contents of budgets for at least two years. In order to probe into the project execution part of the budget. Serious attention will be paid to the various governmental projects. There was a plan to administer questionnaires to the local government areas in the state but confirmed most of this in Enugu due to financial problems.

1.6 LIMITATION OF STUDY

The limitation of this study is due to many factors like problems on interview meeting some of the personnel encountered could not pay attention to the time factor and fear of revealing the secret of the managements functional policies and formula of production.

FINANCE: The course of this study actually came when the average Nigerian is living from hand to mouth. Therefore transportation cost and material cost tended to friction the research. Inspite of all these problems, the research was still carried out successfully hence those who know the importance of research sacrificed to pay attention.

1.7 DEFINITION OF TERMS

BUDGET: The word budget is defined as a collection of documents which is the tangible representation of the governmental unit plans. It may mean the present meaning of annual estimates of revenue and expenditures and statement of financial policy.

AGONIZING: Causing extreme suffering.

SCRUTINIZATION: The act of careful looking or examination.

HYPOTHESIS: A supposition put forward as a basis fro reasoning or investigation