PROBLEMS OF DEBT RECOVERY IN PUBLIC ENTERPRISES
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
PROBLEMS OF DEBT RECOVERY IN PUBLIC ENTERPRISES
ABSTRACT
Debt recovery is a big issue in our government enterprises, particularly the National Electric Power Authority (NEPA). Many clients, ranging from domestic to industrial/maximum status,
owed the authorities billions of Naria from the usage of electrical supply. Because the product ‘electricity’ is consumed prior to payment, every electricity consumer is a debtor to the authority until she or he ceases utilising the potential.
Can NEPA possibly match the needs of today’s society, one would wonder? What about the growing number of uncorrectable and bad debts?
We discovered that the majority of clients do not receive their bills on time and so are unable to settle them on time. Due to late wills, many people resort to duplicate bills, which do not accurately represent the status of bill consumers.
We also determined that the majority of consumers have difficulty raising adjustments on time, as well as a shortage of cash offices, poor customer service, and intermittent power outages, all of which discourage quick payment of electricity bills consumed.
INTRODUCTION TO CHAPTER ONE
1.1 STATEMENT OF THE PROBLEM
Debt collection issues, caused in part by mismanagement, ineffective supervision, and low revenue, among other things, cannot be minimised in our society today, especially when it impacts public organisations.
Udeme (1996) asserts. NEPA is due approximately N3. 5 billion by prospective customers. Furthermore, the Nigerian Telecommunications PLC still owes approximately N5 billion to subscribers across the country. This isn’t far from the
N 2.8 billion is outstanding to the Nigeria Ports PLC and, of course, the Nigeria National Shipping Line (NNSL), both of which are facing liquidation due to poor debt management. This has undoubtedly led to the failure of several state firms in Nigeria.
The following factors are to blame for NEPA’s poor debt recovery:
(1) The consequence of delayed bill distribution to clients.
(2) The impact of bad customer service on the prompt payment of electricity bills.
(3) The impact of time constraints on bill reconciliation on customers.
1.2 THE RATIONALE FOR THE STUDY
The primary goal of this research is to identify debt collection issues in Nigerian public enterprises, with a focus on NEPA management, in order to assist the item in overcoming the issue.
1.3 SIGNIFICANCE OF THE STUDY
A large sum of money belonging to the Authority has been encumbered by numerous consumers around the country. According to Brokington (1994: 3), the goal of sales is to earn a profit, but if the services supplied are not paid for, the business cannot function in another circle.
As a result, addressing the problem of debt recovery through significant research would enhance the revenue position and function of the industry, resulting in a higher quality of living for the nation.
1.4 BACKGROUND OF THE STUDY
Electricity is reported to have begun in Lagos in 1886, with the installation of two 30-kilowatt producing units to supply the metropolis. As commercial activity expanded, several extensions were made to nearly 16 cities and towns.
(1987.7 (statis;
“Right around 1944. The public utility department was in charge of the Lagos city undertaking. However, between 1940 and 1951, it was under the control of the Niger national government’s electrical endeavour.
Oyeyele also stated that other undertakings were founded and operated by locally constituted supply authorities during this time period.
On April 1, 1951, an ordinance known as the Electrical Corporation of Niger (E.C.N) was founded to take control of the 16 local companies that were then in operation.
The corporation built a 132KVA interconnection from I Jona to Ibadan power station and from Ibadan to Orile and Akure, Benin and Ughelli in the west, Afam and Oji in the east, and Kaduna, Aaria, and Kano in the north in 1962.
According to Oyeyele, the first hydroelectric power station with a capacity of two megawatts was built by a private Tin mining interest as (Kwali falls) Kaduna river.
The Nigeria Electricity Supply Corporation Limited installed four megawatts at (KURA FALLS) Benin River. A big hydro-electric feature of approximately 320 megawatts at 33KV operates from Kanji to Lagos in Kaduna’s west. In the north, Benin is located in the Midwest, while Aba is located in the east.
These facilities described above supplied Nigeria with a single supply network. However, in 1970, the federal government commissioned Shawmout (Canada) to analyse the difficulties of the power supply Agency and submit recommendations for a new Decree No 24, which established the National Electric Power Authority (NEPA).
However, Udom’s research found that there was a major labour shortage between the NDA and power acquired in bulk and sold to the public.
Abidun (1984) is another example. This was confirmed by him:
“But with the amalgamation of the two bodies to form today’s NEPA market the beginning of its crises”
1.5 DEFINITION OF TERMS
The definition of words is quite useful in any research project because it aids in explaining the meanings of the numerous technical terminology used in the study. The following words are defined in itence.
NEPA:
According to Oyeyele (1987:7), the National Electrical Power Authority is the public Enterprises responsible with the responsibility and sales of energy supply to consumers.
ELECTRICITY:
Electricity is defined as the power generated by various means carried typically by acres to give heat, light, and cooling.
HOUR OF KILOWATT:
Abbot (1980:84) defines this as the energy supplied by a rate of work of 100 watts for one hour.
CABLE:
The length of an insulated single or multiple conductor (s) cable
ENTERPRISES:
Massie (1992:239) defined it as a public or private entity established for charitable or profit purposes. Public enterprises are typically capital intensive, necessitating government oversight.
UTILITIES:
There are vital services such as NEPA, WATERBOARD, NITEL, AIRWAYS, and so on. The terms utilities and businesses can be used interchangeably. According to Macsran (1967:1969:351), most public utilities in developed nations are managed by private companies.
NUMBER OF THE ACCOUNT:
An account number is a unique number assigned to a specific consumer for accounting purposes.
BILL:
A bill is a written conditional order from one person to another, signed by the person concerned, requiring that the person to whom it is given pay a specified sum of money on a specific date.
AUTHORITY:
The term Authority refers to the authority granted to NEPA by Decree No. 24 of 1972. In this work project, the terms authority, industry, and NEPA will be used interchangeably.
CONSUMERS IN HIGH DEMAND:
There are users who were the upper limit of energy supply, and they are also the highest demand consumers in NEPA.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
