THE ROLE OF PALM FRUIT PROCESSING TO ACCELERATE ECONOMIC DEVELOPMENT IN UMUAGWO, OHAJI EBEMA LOCAL GOVERNMENT AREA

CHAPTER ONE

INTRODUCTION

1.1     Background To  The Study

The processing of palm fruit is the most important processing activity carried on in Nigeria and it is geared towards accelerating economic development Armstrong, R. (2010).  The end products, palm oil and palm kernels, have traditionally composed 15 to 20 per cent of Nigeria's exports as their combined value was £40 million years back.  In addition, palm fruit which is processed into palm oil is an important item in the Nigerian diet (as part of the traditional soup or sauce) and is used as an illuminant, cooking fat, and soap ingredient Chukwu, A.O (2011). Implicit production estimates based on marketing board purchases of palm kernels, for which there is little domestic use, indicate that internal consumption ranges from 80 to 150 per cent of exports.

Palm fruit is one of the most important economic oil crops in Nigeria. According to World Rain-forest Movement,  palm fruit is indigenous to the Nigerian coastal plain though it has migrated inland as a staple crop. Cultivation of it serves as a means of livelihood for many rural families and indeed the farming culture of millions of people in the country thereby contributing to the GDP of the nation. The reference to palm fruit as a crop of multiple value underscores its economic importance Carrere, T. R. (2001).

THE ROLE OF AGRICULTURAL SECTOR AS AN ACCELERATOR TO NIGERIA ECONOMY

CHAPTER ONE

1.1 BACKGROUND TO THE STUDY

By the time Nigeria became politically independent in October 1960,agriculture was the dominant sector of the economy, contributing about 70% of the Gross Domestic Product (GDP) employing about the same percentage of working population and accounting for about 90% of foreign exchange earnings and the federal government revenue (CBN, 2005). The early period of post- independence up until the mid-1970’s saw a rapid growt and output as the contribution of the manufacturing sector to GDP rose from 4.8% to 8.2%. This pattern changed when oil suddenly became of strategic importance to the world economy though its supply price nexus.

Crude oil was first discovered in commercial quantity in Nigeria in 1956, while actual production started in 1958. It became the dominant resources in the mid 1970’shemassive.Tincrease in oil revenue as an aftermath of the Middle East war of 1973 created and unprecedented, unexpected and unplanned wealth of Nigeria. The relative attractiveness of the urban centres made many able bodied Nigerians to migrate from hinder land, abandoned their farm lands for the cities and hoping to partake in the growing and prosperous (oil driven) urban economy. This created social problems of congestion, provision, unemployment and crimes.

BUDGETARY AND MANAGEMENT CONTROL PROCESS

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Traditional budgeting has been criticized for a long time now for its inadequacy as a means of management control. Criticisms concerning its inadequate practices in a changing business environment emerged as early as the mid 1980’s with Johnson and Kaplan (1987) seminal book Relevance Lost.

We could also note from the work of Allen (1998) who stated that the rapid changes in today’s business environment renders a rigid approach to budgetary control obsolete. It is no longer helpful, in his opinion, to compare actual results to that forecasted anything up to 15 months previously. He argues that amongst the requirements of a more appropriate system, would be the building in of accountability to explain the differences between actual and planned performance. This demands a more immediate time frame of information reporting. Thus, there is a need to integrate strategic management and budgeting. We could point out the works of C. Adams et al (2003) to this regard.

These authors conceptualized that to be effective, budgets must be aligned with the organization’s strategies, appropriate strategic planning, and performance management processes introduced, and must involve processes that are value based, consequential and continuous.

The work of Tim Blumentritt (2006) could be viewed as further contributions to the above stand point as he recognizes the need for organizations to integrate strategic management and budgeting. What seems rather unfortunate according to Tim Blumentritt (2006) is the fact that most organizations still treat the budgeting and strategic management processes separately and also, a significant portion of small- and medium-sized enterprises do not engage in strategic planning (Tim Blumentritt 2006, p.74).

Hence, the reason for this research work which is to investigate the question; “what is the budgeting practice in Nigerian manufacturing company?” The motivation for this study also comes from the work of Herath and Indriani (2007) who investigated on the “roles of Budgetary Control System (BCS) as a component of the Management Control System (MCS) in creating and sustaining competitive advantage” and came up with a positive conclusion.

THE ROLE OF THE NIGERIAN STOCK EXCHANGE ON CAPITAL FORMATION (1980-2011)

CHAPTER ONE

INTRODUCTION

1.1  Background Of The Study

Almost all the economist laid emphasis on capital formation as the major determinant of economic growth. The meaning of capital formation is that society does not apply the whole of it’s current productive a immediate desire of consumption, but directs some part of it to the creation of capital goods, tools and instruments, machines and transport facilities, plants and equipments all the various forms of real capital that can so greatly increase the efficiency of productive effort. The essence of capital formation is to divert a portion of resources for the purpose of increasing the stock of capital goods so as to make possible for an expansion of consumable output in the future.

The research focuses attention on Nigerian Stock Exchange which as the most visible mirror of the formal capital market in the country. The Nigerian Stock Exchange is one of the institutions on the capital market, which specializes in all forms of marketing trading securities. It is a network of individual institution and instrument. The market plays a central and dispensable role for which is has been variously described         as  the  “hall  mark”  or  the

The rapid economic development of any economy depends, among other things, on ready access of adequate financial resources (Alile and Anao, 1990). The desire to develop financial market in an economy is intimately connected with the objective of accelerating industrial and agricultural development.

Among this financial market is the stock exchange, which deals with the mobilization of bank medium and long term capital funds (Sule and Momoh, 2009). The mechanism of stock exchange came into existence to enable investment, which were inherently illiquid to become liquid through reconversion into cast at the decision of the investor without inconveniency the company (Olowe, 1997). Today, words like globalization have become familiar in economic and finance parlance and past growing intern dependence of economics and financial markets cannot be ignored.

THE EFFECT OF DRUG ABUSE AMONG NIGERIA UNIVERSITY UNDERGRADUATES

CHAPTER ONE

INTRODUCTION

1.1       Background To The Study

This research work is on the effects of Drug Abuse among University undergraduates in Nigeria. It appears that not only the use of drugs that create problems but rather their misuse. In other words the widespread use of drugs has not only turned our attention to the dynamics of drug use and its determinants but also made it necessary to weigh the impact of this process on social institutions and social charge in future generations.

Drug abuse according to Laver (1978) simply means the improper use of drugs to the degree that the consequences are defined as detrimental to the user and or the society. The World Health Organization (WHO2006) also defined drug abuse as a intoxication, detrimental to the individual and to the society, produced by the repeated consumption of a drug (natural or synthetic).

Drug abuse patterns include all aspect of drug usage by the youths ranging from how much, how often and what sort of drugs, where who, with, what circumstances and so on. The analysis of contemporary social problem has consistently proved more and more controversial because of the variables involve in their analysis, with the incidence of drug abuse, being of utmost concern to the abuser himself, his family, the government and the entire society in which he lives. This situation seems to have caused a lot of embarrassment to the government including most especially the damage done to the image of Nigerian abroad. It is obvious that custom officials in the United States of America and indeed the entire Nations of Europe subject the people of Nigeria traveling to their countries to a more thorough and embarrassing checks. This type of degrading and humiliating examination of Nigerians according to them is because they want to crack down on smugglers of which Nigerians are the chief suspects due to the hard drug trafficking posture exhibited by some greedy Nigerians.

Furthermore, Nigerian societies has defined some drugs as acceptable while others as not acceptable without reference to their effects on mental and physical wellbeing of t the of the users, for example, society considers the use of alcohol and nicotine as acceptable, hence those of them who take these drugs do so freely in public without fear of arrest or society stigma.

To the society as a whole, crime, promiscuity, armed robbery and other vices are all linked to drug abuse. Therefore this study is motivated by the controversy that surrounds the effect of drug abuse among University undergraduates in Nigeria.

SOCIO-ECONOMIC AND CULTURAL FACTORS MILITATING AGAINST COMMUNITY DEVELOPMENT IN IDEATO LOCAL GOVERNMENT AREA OF IMO STATE.

CHAPTER ONE

INTRODUCTION

1.1  Background to the Study

In Nigeria, the rural areas are not progressing in line with urban areas or metropolitan states in term having sustainable development like good road, electricity, good telecommunication, transportation, good water supply, standard market and health centres, improved housing as well as improved agricultural and storage facilities that would help in sustaining the rural masses. McKnight (1995) defined the term rural development as the overall development of rural areas to improve the quality of life of the rural people.

According to Ihumodu (2003), rural development is the process of economic and social progress aimed at eradicating poverty among rural populace through provision of life and satisfying the basic needs of the people. Eradicating poverty among rural people demands appropriate skill. Rural people are endowed with quantum of knowledge and traditional skills, but at their primitive levels, that needs development to fit in properly with the modern trends of thing (Stall & Stoecker, 1998). This can be achieved through capacity building programmes. Capacity building is the process of developing skill, ability and faculties individually and collectively, that is vital in comprehending rural development and its roles in ameliorating rural poverty, ignorance, low human skill and literacy (Castelloe, 2002). All these are done to sustain the development of rural setting. Sustainable development vector (i.e. elements of desirable social objectives or attributes which societies seek to achieve through conserving natural resources (Pearce & Barbier, 1999).

Most rural societies are not able to achieve development because they lack the basic resources that would bring development or they are not able to harness and utilize the existing resources that would enable them develop their society (Robinovitch, 1994). In Nigeria, this has been serious social issue in recent time.

Socioeconomically, infrastructure and basic amenities like good road, portable water supply, electricity, health centres, markets, transportation, telecommunication, sports centers etc. affect development. This is true because, when all these essential things are lacking, development can hardly come or occur. Other important factors are illiteracy, ignorance and poverty. On the other hand, government neglect can also affect developmental process that will take place in the rural areas.

Culturally, belief system of the rural people bridge development, for example, they find it difficult to release a particular land for development due to the belief that it is on that land sacrifices are being made for the gods of their land, secondly they find it difficult to release a particular land for development to avoid the destruction of their aesthetic values like trees and other things that bring about the beauty of their area. Another cultural factor is on land tenure system (ownership of land). This implies that some land owners in the rural areas do not like releasing or letting go of their land for building of factories, schools, market, churches, health centres etc. by the government or even private individuals who are capable of doing so. By so doing, development is swept under the carpet. Fear of terror and labelling are another vital cultural factor which affect development, for example, an individual who is financially capable can withdraw his intention to develop a particular rural area due to the fear of getting him killed by armed robber and evil men or being labelled a fraudster and also a ritualist.

Rural development is a multidimensional and comprehensive concept; it encompasses the development of agriculture and allied activities, village and cottage industries and crafts, socio-economic infrastructure, community services and facilities and above all, human resources in rural areas. As a phenomenon, rural development is the end result of interactions between various physical, technological, economic, socio-cultural and institutional factors (Isife, 1998). According to Igbokwe (2000), rural development is a strategy designed to improve the economic and social wellbeing of a specific group of people, i.e., the rural poor.

THE INFLUENCE OF ENVIRONMENT ON THE ACADEMIC PERFORMANCE OF STUDENTS

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

The influence of colonialism on Nigeria cannot be over emphasized. The influx of white explorers, traders and missionaries led to the development of settlements that differed from the traditional domestic environment. These new settlements were designed to reflect the norms, values and economic policies of the colonial masters. Africa, the land of blessed race, where the opportunists came to develop in order to colonize their resources for their good, was then left in vain hope(Allen, 2011).

Although primarily established for white settlers, the new settlements known as urban areas or township also served as a refuge for appreciable number of Africans who had in some substantial degree emancipated themselves from the constraints of traditional society. Among them were professional men, clerks and shop keepers with at least primary education, growing numbers of wage-earners and large number of farmers receiving cash income from growing crops for world market (Fage, 1978).

The projection of industrial capitalism in Africa produced well-defined urban classes’ people with technical s twentieth century world modestly symbolized by radios and bicycles and to enjoy freedom based on knowledge and a more advanced mode of production. These ambitions were feasible only in an urban settlement. Aba is reputed as a big commercial city. It is predominantly inhabited by businessmen of various persuasions traders, big – time technicians and craftsmen, importers and exporters transporters etc. Even the few professionals like Teachers, Doctors, Lawyers, Accountants, and Engineers etc. have unwittingly imbibed the commercial tradition of the dominant group.

In Aba you are either a businessman or you are nobody. In fact the influence of commerce is so pervading that the market unions have come to connote the defacto government or power broker in all of Aba. The defunct famous Bakassi Vigilante Group was composed of traders and craftsmen. The commercial nature of Aba has also influence the attitude and life style of most residents. The rat-race syndrome is very pronounced. Everything is measured in terms of its worth in money. People do not have time for anything else but money. Parents do not even have time for their children. In some cases the children are surrounded by paid cooks, drivers and house boy/maids who attend to their needs while their parents are busy making money. This creates room for child abuse through neglect and over indulgence by parents. We can observe that the environment regulates the social, religious, academic and cultural inclinations of the child as other less fortunate children are abused through exploitation. For example, those employed as shop assistants may sleep in the shops. The typical day starts for such children of about 5.30am.

THE IMPACT OF POPULATION GROWTH ON THE NIGERIA ECONOMY (1980-2010)

CHAPTER ONE

INTRODUCTION

1.1   Background Of The Study

The consequences of population growth on the economic development of less developed countries are not the same because the condition prevailing in these countries are quite different from those of developed economy. Therefore the body of literature on population growth in Nigeria has always emphasized either the negative or the positive effect.

Therefore in every discussion, it is conventional to start with a definition of terms used in such discussion. However, population growth can be seen by a demographer as a change in the size of the population. But when this change occurs in such a way that it reduces the size of population, the demographer refers it as a negative growth but when it adds to the size of the population he regards it as a positive one. What we get from this concept is that population growth can be positive or negative depending on whether there is an increase or decrease in the size of a given population. Population whether positive or negative is derived from three demographic variables such as birth, death and migration rates

Udabah (1999) Threw more light on this by adding that birth and death rates in underdeveloped countries are quite different from that of developed countries. Births rate in underdeveloped are generally high, why those of developed countries are low. On the other hand, death rates are higher in underdeveloped nations. The higher rate of population growth is therefore a major characteristic of underdeveloped nations and is partly responsible for the low rates of economic development.

Moreover, the population of any country constitutes the most vital component of its resource base. This aspect is based mostly on its size, growth rate, spatial distribution, demographic structure and quality in terms of level of education, fitness and social welfare. Population statistics are indispensable impute into the planning process in any area. 

EFFECTIVE INTERNAL AUDIT AS A PANACEA TO EFFICIENT LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1              Background Of The Study

Globally the role of auditing is being appreciated for its avowed operations and activities. Ihe and Umeaka(2006:370) defined a process carried out by suitably qualified auditors during which the

accounting records and the financial statements of an organization are subjected to examination by an independent auditor with the main objective of expressing an  opinion in accordance with the relevant terms of appointment purpose” they also noted that the were grouped into two

1.2   Primary objective: the auditor (one who carries out audit operation) is to report whether the financial statements shows a „true financial affairs of the organization during the period under review and send date. 

EFFECTS OF MICROFINANCING ON MICRO AND SMALL ENTERPRISES IN SOUTH – WEST NIGERIA

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Since Nigeria attained independence in 1960, considerable efforts have been directed towards industrial development. The initial efforts were government-led through the vehicle of large industry, but lately, emphasis has shifted to Small and Medium Scale Enterprises (SMEs) following the lessons learnt from the success of SMEs in the economic growth of Asian countries (Ojo, 2003). Thus, the recent industrial development drive in Nigeria has focused on sustainable development through small business development. Prior to this time, particularly judging from the objectives of the past National Development Plans, 1962-68, 1970-75, 1976-80 and 1981-85, emphasis had been on government-led industrialization, hinged on import-substitution strategy. 

Since 1986, government had reduced its role as the major driving force of the economy through the process of economic liberalization entrenched in the IMF pill of Structural Adjustment Programme. Emphasis, therefore, has shifted from large-scale industries to small and medium- scale industries, which have the potentials for developing domestic linkages for rapid and sustainable industrial development. Attention was focused on the organized private sector to spearhead subsequent industrialization programmes. The incentives given to encourage increased participation in these sectors were directed at solving and/or alleviating the problems encountered by industrialists in the country, thereby giving them opportunity to increase their contribution to the Gross Domestic Product (GDP). 

The contribution of Micro, Small & Medium Enterprises (MSMEs) to economic growth and sustainable development is globally acknowledged (CBN, 2004). There is an increasing recognition of its pivotal role in employment generation, income redistribution and wealth creation (NISER, 2004). The micro, small and medium enterprises (MSMEs) represent about 87 per cent of all firms operating in Nigeria (USAID, 2005). Non-farm micro, small and medium enterprises account for over 25 per cent of total employment and 20 percent of the GDP (SMEDAN, 2007) compared to the cases of countries like Indonesia, Thailand and India where Micro, Small and Medium Enterprises (MSMEs) contribute almost 40 percent of the GDP (IFC, 2002). 

MANAGEMENT BY OBJECTIVE AS TOOL FOR ORGANIZATIONAL EFFECTIVENESS

CHAPTER ONE

                                                               INTRODUCTION:

1.0              Background Of The Study

Management needs a lot of tools to be able to administer effectively in the day to day running of the business. Management by objectives is one of such tools. It is a way of getting improved results in managerial action. Management by objectives can be described as a managerial method where by the superior and the subordinate managers in an organization identify major areas of responsibility, in which they will work, set some standards for good or bad performance and the measurement of results against those standards Derek (2005:156).

Management by objective is also called Managing By Objectives. However, there have been certain individuals who have long placed emphasis on management by objectives and by so doing have given impetus to its development as a system. Management by objectives refers to a structured management technique of setting goals for any organizational unit.

George S. Odiorne (1981:1) in his book management by objectives defined this concept as “a system of management whereby the superior and subordinate jointly identify objectives, define individual major areas of responsibility in terms of results expected, and use these objectives and expected results as guides for operating the unit and assessing the contribution of each of its member. Besides, Odiorne points out that management by objectives is a “system of management” an overall frame work used to guide the organizational unit and outline its direction. He went further to point out that “the superior and subordinate jointly identify objectives”. In other words, it is a participative management procedure that requires commitment and co-operation. The definition deals with identifying the “results” that are expected. Thus management by objectives concentrates on the output of the organisation evaluating people by assessing their contribution to this output.

Management by objectives is a strategy where in the management sets specific goals for the employees to accomplish within a fixed time period. Management by objective is a dynamic system which seeks to integrate the company a need to clarify and achieve its profit and growth goals with the managers need to contribute and develop himself. It is a demanding and rewarding style of managing a business.

Management by objectives can work in any size of organization if the procedures are understood and managers are patient in letting the system set in first. Management by objective is an effective planning, control and development system.

THE MANAGEMENT OF INSURANCE COMPANIES TOWARDS THE DEVELOPMENT OF BUSINESS ENTERPRISES (A CASE STUDY OF ROYAL EXCHANGE ASSURANCE NIG. PLC.KANO STATE).

 

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Life is full of risk and every human being is confronted with possibility that one day one of these hazards which form part of life may befall them because one financial loss or the other. The purpose of insurance is to indemnify the victims for the financial loss they might have suffered as a result of these risks. Risk is a  concept that denotes a potential negative  impact to an  asset or some characteristic of  value that may arise from some present  process or future  event. In everyday usage, "risk" is often used synonymously with the  probability of a known loss. Paradoxically, a probable loss can be uncertain and relative in an individual event while having a certainty in the aggregate of multiple events (see risk vs. uncertainty below). Risk is the possibility of an event occurring that will have an impact on the achievement of objectives. Risk is measured in terms of impact and likelihood.

Insurance was not set out to climate and cannot soften the blow in a purely financial sense of obtaining monetary compensation to the victims thereby placing them in a financial position.

The purchasing of an insurance has been earlier describe as the insured person as a policy holder in order to protect himself against a particular risk, take out a policy with an insured, thereby passing over the risks to the insured on a payment of a fee known as premium. Life is associated with different kind of risk some of this risk are insurable while some are not. The insurance industry in each devices different type of insurance policy to carter for each one to the insurance risk.

life, aviation, motor, person, accident and a lot of others. Insurance as an industry did not exist in Nigeria until the later part of the twentieth century. However, there existed in Nigerian communities, some form of organize mutual social insurance schemes which had the future of modern insurance.

Apart from the early social insurance scheme, insurance as an industry is relatively new in Nigeria. The first operation branch of an insurance company was open in Nigeria in Lagos in 1921 by the Royal exchange assurance Plc. and it remain the only insurance company in Nigeria until 1949 when three British owned insurance companies were opened up.

UNEMPLOYMENT PROBLEMS AMONGST GRADUATES OF HIGHER INSTITUTIONS (A CASE STUDY OF ENUGU METROPOLIS)

                                                          CHAPTER ONE

INTRODUCTION

1.1  Background Of The Study

This chapter provides a broad overview of the employment situation in graduate s which is a major concern of government and their social partner throughout the region. The approach is rather general and highlights major issues concerning employment problems and prospects in the region. Because of data limitation, it does not attempt a comprehensive and quantitative analysis of the employment situation. it brings with an examination of the employment problems, including background information on its origin and trends, and then looks at the nature and underlying causes of contemporary unemployment. Unemployment of a large portion of the labor force is a central problem now in almost all the underdeveloped countries.

The  phenomenon  of  chronic  unemployment  has  become  the major  concern   of   successive   Nigerian   government.   The phenomenon of joblessness creates much concern for the individual Nigerians. According to the 1966 - 67 manpower surveys in Nigeria, the proportion of the labour force in Nigeria not working is 1 - 7 percent, which means that nearly two of every one hundred member of the potential labor are unemployed.

Unemployment has thus reached such an alarming situation today that is perhaps considered the most serious of the problem affecting Nigeria and one that is steadily worsening as the gap between the rapid rising member pressing for work and the new employment opportunities being created widens.

In the underdeveloped countries such as Nigeria however employment benefits are not available to the unemployed. the income level of the great majority of families makes the provision of unemployment benefits virtually impossible thus those unable to find jobs or these discharged from their previous employments re left to fend for themselves. in under developed countries majority of job seekers are therefore forced to create employment for themselves particularly in the rural agricultural sectors where they force disguised unemployment. in the context of this study both those who are disguised unemployment. in the context of this study both those who are disguisedly unemployed and those who are openly unemployed are lumped together as the unemployed.

EFFECTIVE INTERNAL AUDIT AS A PANACEA TO EFFICIENT LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1              Background Of The Study

Globally the role of auditing is being appreciated for its avowed operations and activities. Ihe and Umeaka(2006:370) defined a process carried out by suitably qualified auditors during which the accounting records and the financial statements of an organization are subjected to examination by an independent auditor with the main objective of expressing an opinion in accordance with the relevant terms of appointment purpose” they also noted that they were grouped into two

1.2   Primary objective: the auditor (one who carries out audit operation) is to  report whether the financial statements shows a „true financial affairs of the organization during the period under review and end date.

1.3   Secondary objective: This concerns the detection of frauds and errors and the prevention of frauds and errors The crux of this research work however is based on internal Audit – which is a very important aspect of auditing, how the internal audit unit of the government can be made effective in order to assist in the efficient administration of local Government Areas (LGA). 

EFFECT OF PUBLISHED FINANCIAL STATEMENT ON SHAREHOLDER INVESTMENT DECISION

CHAPTER ONE

INTRODUCTION

1.1              Background Of The Study

Each person like every business requires some measures of both financial position and financial performance in assessing his financial conditions. The financial position as depict one’s point weal in financial performance describes once.

Financial statements according to Illoumezie (2006:33) are like compasses “which navigators use to People use them to gauge their financial positions at various points in their lives in order to judge their progress towards their financial goals. Financial statements according to meigs and meigs (1981:28) refers to reports which summarize the financial position and operating results of a business (balance sheet and income statements). It referred to as genera purpose that satisfy the need of many groups generally called stakeholders. These groups are particularly concerned with the risk inherent in and returns provided by their investments, and who require accounting information to enable their assess the ability whether they should buy, hold and sell their investments.

According to Anayaogu (2002:14) financial accounting provides information to eternal decision makes such as shareholders government, creditors, employees etc, these are people with whom or from whom money is ultimately paid or received. Anayaogu (2002:20) also states that records of financial accounting includes various ledges accounts, profits and loss accounts, balance sheet and other financial records. These records are intended to show the strength, progress, portability, management effectiveness and stewardship.

DEVELOPING EFFECTIVE STRATEGY FOR PENSION ADMINISTRATION IN THE NIGERIAN PUBLIC SECTOR (A STUDY OF PENSION COMMISSION RIVERS STATE,NIGERIA)

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

The greatest challenge to government worldwide remains the issue relating to pension fund management. A financial analyst called Alexandra Forbes argues “Pension Management, world over, has become an increasingly great concern to most government and countries of the world”.

And coming to Nigeria, the country was guided by a number of pension regimes prior to the promulgation of the pension Act 2004, pension schemes in Nigeria had been bedeviled with many pitfalls. The public service operated an unfounded defined benefit schemes and the payment of retirement benefits were budgeted annually. The annual budgetary allocation for pension was often one of the most vulnerable items in budget implementation in even where budgetary provisions were made, inadequate and untimely release of fund resulted in delays and accumulation of arrears of payment of pension rights. It is then obvious that, the defined benefit scheme could not be sustained.

In the private sector on the other hand, many employees were not covered by the pension scheme put in place by their employers and many other schemes were not funded. Besides, where the schemes were funded, the management of the pension funds was full of malpractices between the fund management and the trustees of the pension board.