Thesis Abstract

Abstract
Financial management in government-owned companies is a critical aspect of ensuring efficient operations and accountability to the public. This research project aims to explore the various challenges and opportunities associated with financial management in such entities. The study will investigate the unique characteristics of government-owned companies that differentiate them from privately owned businesses, particularly in terms of financial decision-making processes and reporting requirements. An in-depth analysis of the financial management practices in government-owned companies will be conducted, focusing on budgeting, cost control, revenue generation, and financial reporting. The research will examine the role of government regulations and oversight in shaping the financial management practices of these entities, as well as the impact of political influences on financial decision-making. Furthermore, the study will explore the implications of financial mismanagement in government-owned companies, including potential risks to public funds and the consequences for stakeholders. By identifying common challenges and best practices in financial management, this research aims to provide valuable insights for improving the financial performance and transparency of government-owned companies. Through a combination of qualitative and quantitative research methods, including interviews, surveys, and financial analysis, this project will offer a comprehensive understanding of the financial management landscape in government-owned companies. The findings will contribute to the existing body of knowledge on public sector financial management and offer practical recommendations for policymakers, managers, and other stakeholders in these entities. Ultimately, this research project seeks to promote good governance, accountability, and sustainability in government-owned companies through enhanced financial management practices. By addressing the unique challenges faced by these entities and identifying opportunities for improvement, this study aims to support the long-term viability and effectiveness of government-owned companies in serving the public interest.

Thesis Overview

INTRODUCTION

1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

The statement of the problem is to carryout an investigation into the field of financial management practice in government owned companies, with particular reference to Nigeria limited and also highlight the financial problem facing these companies in this problem the main purpose of this study is to:

To identify and examine some factors that militate against successful financial management of government owned companies
To find out why those problem have been difficult to solve and make recommendation and suggestion on how they should be solved.
Explore other areas which in the writers opinion are relevant for effective management of funds.
To recommend generally and specifically the study of financial management.

1.2 RATIONALE OF THE STUDY

Financial management vary necessary according to the nature of the enterprise concerned, once the corporation objective have been defined, the examination of the whole business structure and the related financial need as follows:

The goal and objective of financial management is to maximize the shareholder wealth by this view they should formulating the firms objective in terms of the share holder interesting the main base of financial market is implemented. That mean the firms with better performance will have higher stock price and additional funds can be commonly pressure the aims of financial management is the maximization of the firms value (i.e. profit maximization relative to investment).

To obtain these, some unprofitable short run may be required

Financial management objective of the company is to maximize its value to their share holders.

1.3 SIGNIFICANCE OF THE STUDY

Financial management is very important for the achievement of the firms goal and objective. Because it help the financial manager to carry out their effective project financial management in government owned companies help to see how the field of financial management will contribute to a better improvement of the study of finance, there by minimizing the result of our investment and divided decision by companies.

It helping the finance manger for decision making by planning for futuristic event that may occur for day to day business activities.

1.4 BACKGROUND OF THE STUDY

Nigeria limited, an economic parastatals was incorporated in may 1962 under ordinary company law as a partnership between the form Nigeria government and said machine. The supplied plant to the company and managed the affair until the war broke out in 1967 is only indigenous gas producing company in Nigeria.

After the war in 1970, the company was reactivated and started production on 1stApril 1975. between 1983 and 1984 there was cram shaft broke down which resulted in the stoppage of production. The company received #733.000 from the state government which was later converted into their share and also as loan.

1.5 DEFINITION OF THE TERMS

Financial management may be defined as the function and areas of responsibilities of financial manager such as.

The raising of funds to finance project.
The employment of funds to raised in viable project
The management of the cash flow arising from these project
The return of funds to the funding sources. This fund are raised from financial market and allocated among different uses the flow of fund involved in the operation of the enterprise are managed. The financial management in the provision of fund of time it is required any person responsible for finance in any form, is confronted with the prospects of inflow and outflow at receipts and payment and they arise.