IMPACT OF FINANCIAL MANAGEMENT IN THE PUBLIC ENTERPRISE (A Study of Nigeria National Petroleum Corporation)   


This study examined the impact of financial management on public enterprises, a case study of Nigeria National Petroleum Corporation. Questionnaires were administered using random sampling technique for data collection. The data obtained were analyzed using chi-square. distribution. The findings of the study revealed that financial  management help in controlling the financial resources of a public enterprise also  and that public enterprises maximize shareholders wealth. The study recommended among others that physical audits  process  audit and financial audit should be  embarked upon so that the quantity of goods sold, operation procedure  and profit can be ascertained.              


Content                                            Page

Title page    -    -    -    -    -    -    -    -    -    -    i

Approval    -    -    -    -    -    -    -    -    -    -    ii

Dedication    -    -    -    -    -    -    -    -    -    -    iii

Acknowledgement    -    -    -    -    -    -    -    -    -    iv

Abstract    -    -    -    -    -    -    -    -    -    -    v


1.0 Background of the study                                                   1

1.1 Statement of Problem                                                       4

1.2 Objective of the study                                                       5

1.3 Research questions                                                          5

1.4 Statement of Hypothesis                                                   5

1.5 Significance of the Study                                                  5

1.6 Scope or delimitation of the study                                     6

1.7 Definition of Terms                                                            6


2.0 Introduction                                                                       8

2.1 Conceptual framework                                                      8

2.2 Functions of Financial Managers                                      11

2.3 Nature & Scope of Finance                                               13

2.4 Finance Functions                                                            16

2.5 Origin of Public Enterprise                                                19

2.6  Characteristics of Public Enterprises                                        19

2.7  Nature of Public Enterprise                                                       20

2.8  The Reasons for Public Enterprise                                            25

2.9  Importance of Public Enterprise                                               28

2.10 Objectives of Public Enterprise                                                29

2.11 Method of Data Collection                                                       30

2.12 Method of Data Analysis                                                         30

2.13 Scope of Finance Functions                                                    31

2.14 Sources of Business Financing                                               33

2.15 Relationship between Risk and Return                                    41


3.0    Introduction                                                                            44

3.1    Research Method and Procedure                                       44

3.2    Research Design                                                                 44

3.3    Method of Data Collection                                                   45

3.4    Sample Size and Procedure                                                46

3.5    Method of Data Analysis                                                      46

3.6    Techniques  of analysis                                                        47


4.0 Introduction                                                                                48

4.1 Procedure for the processing and analyzing of collected Data                            48

4.2 Analysis of Data                                                                        59




Recommendation           65


Appendix                                       89 - 91                               89




Raising and utilizing funds efficiently and effectively has been a major source of concern to all financial managers both in the corporate world and Public Sector all over the world. The prime purpose of establishing a firm is to ensure that returns will not only be sufficient to meet the cost of funds but also enough to satisfy the wealth of maximization objective of the firm, thus, raising finance for corporate bodies has become important.

Financial management can thus be described as the managerial planning and controlling of financial resources of a business to achieve the objectives of the business. It has long been considered as a branch .of economics but in the early 20th century it emerged as a separate discipline. It can also be defined as the identification of the possible strategies capable of maximizing an organizations net present value, the allocation of scarce resources among the competing opportunities, and the implementation and monitoring of the chosen strategy so as to achieve stated objectives.

Financial management as a subject is of growing interest to both academics and financial managers. On its emergence, it dealt with only the instruments, institutions and procedures in the capital market. It later dealt with keeping records and reports, establishing funds (external financing) monitoring cash position and paying bills. It also deals with the concepts, assumptions, principle and techniques underlying the major financial decisions of the enterprises. Financial management connotes responsibility for obtaining and effectively utilizing the funds necessary for the efficient operation of an enterprise. The finance function centre around the management of funds, raising and using them effectively. It therefore covers all functions concerned in attempting to ensure that financial resources are obtained and used in the most effective way to secure attainment of the objectives of the organization.

It provides the background for thorough understanding of the nature, theories and critical issues relating to modern financial management. It thus serves as a necessary background to a more advanced treatment of the investment financial decision.  

Financial management today now includes a rigorous analysis of Investment of organization's funds in assessing and obtaining the best mix of financial and dividend in relation to overall market valuation of a firm.

The field is still changing with ideas and techniques. The historical background of the company under review is thus:

NIGERIA NATIONAL PETROLEUM COMPANY (N. N. P. C) was established on April 1977 under the statutory instrument decree No. 33 of the same year by a merger of the Nigeria National Oil Corporation operational functions and the ministry of mines and power with its regulating responsibility, this decree established NNPC, a public organization that would on behalf of government adequately manage all government interest in the Nigeria oil industry.

In addition to its exploration activities, the corporation was given powers and operational interest in refining petrochemicals and products transportation as well as marketing. Between 1978-1989, NNPC constructed refineries in Warri, Kaduan and Port Harcourt and took over 35,000 barrel shell refinery established in Port Harcourt in 1965.

In 1988, the NNPC was commercialized into 12 strategic business units covering the entire spectrum of oil industry operations: exploration and production gas development, refining, distribution, petrochemical engineering and commercial investment. The subsidiary companies include:

i)                   National Petroleum Investment Management Services


    ii)      Nigeria Petroleum Development Company (NPDC)

    iii)     The Nigerian Gas Company (NGC)

    iv)      The Products and Pipelines Marketing Company (PPMC)

    v)       Integrated Data Services Limited (IDSL)

   vi)      Nigeria LNG Limited (NLNGN)

vii)         National Engineering and Technical Company Limited


viii)    Hydrocarbon Services Nigeria Limited (HYSON)

   Ix)     Warri Refinery and Petrochemical Co. Limited (WRPC)

   x)      Kaduna Refinery and Petrochemical Co. Limited (KRPC)

   xi)     Port-Harcourt Refining Co. Limited (PHRC)

    xii)      Eleme Petrochemicals Co. Limited (EPCC)

In addition to these subsidiaries, the industry is also regulated by the department of petroleum resources (DPR) a department within the ministry of Petroleum resources. The DPR ensures compliance with industry regulations processes applications for licenses, leases and permits establishes and enforces environmental regulations. The DPR and NAPIMS playa very crucial role in the day to day activities throughout the industry.

The NNPC is by law a joint venture between the Nigerian Federal Government and a Number of foreign multinational corporations, which includes Royal Dutch Shell, Exxon-Mobil, Agip, Total fina Elf, Chevron and Texaco (though now merged with chevron). Through collaboration with these companies, the Nigerian government conducts petroleum exploration and development.(project topics   final year project topics )

According to the Nigerian constitution, all minerals, Gas and oil the country possesses are legally the property of the Nigeria Federal Government.


Public finance is closely connected to issues of income distribution. Resources generation, resources allocation, expenditure management are the essential component of the public financial management system.

Most of the time, resources collected from the economy are inefficiently and ineffectively utilized which constitute poor financial management.

Financial information relating to the operations of the joint ventures are not in the public domain, most public enterprises have no audited account and not been audited in several years.

Public enterprise are poorly managed, and highly unreported with their financial information either unavailable unreliable where such financial information are available, or questionable at best. They are broken and has become liabilities the their nations. They have a huge debt profile, hidden financial records and obviously unable to meet their financial obligations.

To achieve transparent government, this question must be answered,; How can financial poor financial management be eliminated in public enterprises?      


1.     To identify how financial management play a major role  in the public sector.

2.     To examine how public enterprises has minimized share holders wealth                 


1.     Does financial management play a major role in the public sector?

2.     To what extent has public enterprises minimized shareholders wealth?


The hypothesis designed to solve problems identified in public enterprises (a case study of NNPC)

Hypothesis to be tested

Ho:- Financial management does not play major role in a Public Sector.

Hi: Financial management play a major impact in a Public Sector.

Ho: Public enterprises does not maximize stakeholders wealth.

Hi: Public enterprises maximize stakeholders wealth


The purpose of this study is aimed at studying the relevance of financial management and its contributions in an enterprises. This would be appreciated when it is remembered that in a business concern organized to produce a profitable return to those who have invested in it (stakeholders), the objectives of management is to maximize such returns, and financial management is a technique that can be of assistance in attaining such maximization.

The significance of this study will be appreciated in the following area which includes:

a)                 Merit of having a suitable financial management in a public enterprise.

b)                 To show the effectiveness of financial management in the public enterprise.

c)                 To show that financial management helps in the co­ordination of other sectors in an enterprise.

d)                 It could also serve as a reference point to those who might want to carry out research in similar areas of study.


The scope of the project is limited to a public enterprise. For the purpose of this study, the scope will cover the role of financial management and its relevance in a public enterprise. All investigation and researches of this write up shall be limited to Nigeria National Petroleum Corporation (NNPC). Where facts on the role played by financial management would be highlighted. This project will be limited by time constraint and financial constraint and also non-co­operation on the part of the workers.


Financial Management:- the managerial planning and control of financial resources of a business to achieve the objectives of the business

Financial Managers:- this is a key manager who is responsible for the day to day financial services and record keeping of the organization.

Investment Decision: - this involves the identification of viable projects using various techniques to determine those that are viable. Financing Decision: this involves the identification of the appropriate sources of finance that would be used to finance the projects. Dividend Decisions: this is the determination of the appropriate amount to be paid as dividend and the profit that would be ploughed back to finance expansion in the company.

Stakeholders: this is a coalition of a group of people that has a stake in what the company does. It comprises of equity shareholders, preference shareholders, lenders, employees, suppliers and customers.

Public Enterprise: these are governmental organizations which are "Un in the interest of the society as a whole and they might be a gap between the benefits they provide to society and the cost of their operation.

Finance: this is the management of money (i.e. the management of the flows of money through an organization and claims against money)

Objectives: this states precisely what is to be achieved and when the results are to be accomplished.



RESEARCHWAP.COM is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • " is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing