Thesis Abstract

Abstract
Capital budgeting decisions play a crucial role in the financial management of government parastatals. This research project aims to appraise the various factors influencing capital budgeting decisions in government parastatals, with a focus on efficiency, transparency, and accountability. The study employs a mixed-methods approach, combining qualitative interviews with quantitative data analysis to gain a comprehensive understanding of the decision-making process. The research findings indicate that government parastatals often face unique challenges in their capital budgeting decisions, including political interference, bureaucratic red tape, and limited financial resources. These factors can significantly impact the efficiency and effectiveness of capital budgeting processes, leading to suboptimal investment decisions and resource allocation. Furthermore, the study highlights the importance of transparency and accountability in capital budgeting decisions within government parastatals. Lack of transparency can result in mismanagement of funds, corruption, and poor allocation of resources. By promoting transparency and accountability, government parastatals can enhance public trust, improve financial performance, and achieve better outcomes in their capital investments. The research also identifies best practices and strategies for improving capital budgeting decisions in government parastatals. These include implementing clear guidelines and criteria for project evaluation, conducting thorough cost-benefit analyses, and involving stakeholders in the decision-making process. By adopting these practices, government parastatals can enhance the quality of their investment decisions and ensure optimal utilization of resources. In conclusion, this research project provides valuable insights into the challenges and opportunities associated with capital budgeting decisions in government parastatals. By addressing issues related to efficiency, transparency, and accountability, government parastatals can improve their financial management practices and achieve better outcomes in their capital investments. The findings of this study have important implications for policymakers, managers, and stakeholders involved in the financial management of government parastatals.

Thesis Overview

1.1   INTRODUCTION:

Capital budgeting decision in the most government parastatals is statutory instrument used to take decision in most organization like          NNPC i.e. Nigerian National Petroleum Industry. This government parastatals helps in exploration of crude oil and natural gas and refining or processing of crude oil and natural gas to produce petroleum and produces and others denatures both for domestic consumption and for export.  The expect of the corporations activities include transportation and distribution petroleum products throughout Nigeria and production of petrol-chemical to provide the needed raw material for rapid agricultural and industrial development of the country.  They are also responsible for the supervision of the country activities of oil companies.

Since the year 1996, most of the oil companies has grown considerably.  This is evident in its size and area of operation, which spanned through one length and breath of the country.

The other subsidiaries of government department engaged in activities of capital budgeting are; (1) Engineering Company of Nigeria (ENCON).

This is a joint venture enterprise between NNPC and Bethel, An American based multi national engineering and consulting company.

B.     Nigerian Petroleum Development Company (NPDC):  This is petroleum producing company of a group.  It is wholly owned by Ngos.  It is involved in exploration and production of crude oil and gas.

The mission of NNPC is to profitable operate and optimum size petroleum exploration and production.

Nigeria has development company limited NGDC it is also under the NNPC, its mission is to efficiently gather treat, transmit and market Nigeria Natural Gas and its bye-products to major industries and utility gas distribution companies in Nigeria.  The other includes Integrated Data  Service Company Limited (IDSC).

1.2   STATEMENT OF THE STUDY:

This study which is an appraisal of capital budgeting in government parastatals, is to find out how the various appraistatals appraise as capital budgeting decisions.  For every organization, the usefulness of financial statement enhance decision making. Information provided should be current and meaningful.

The continuing inflation of recent year has led to an increasing awareness of some of the disadvantage of historical cost accounting. The following problems associated against the capital budgeting decision in government parastatals.