ASSESSMENT OF ADEQUACY AND UTILIZATION OF FUNDS IN RELATION TO PERFORMANCE IN THE NIGERIAN INSTITUTE OF TRANS PORT TECHNOLOGY
ASSESSMENT OF ADEQUACY AND UTILIZATION OF FUNDS IN RELATION TO PERFORMANCE IN THE NIGERIAN INSTITUTE OF TRANS PORT TECHNOLOGY
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Date
2008-05
Authors
ABU, SEINI ODUDU
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Abstract
The Nigerian Institute of Transport Technology according to its management has been
experienced the problem of inadequate funding since established. This shows that the
funds allocated to the Institute is not adequate to engage in any meaningful research
work and to develop technologic id and managerial skills in transportation. But this
statement was challenged by some that funds allocated to the Institute is adequate, the
only problem is that of poor utilization. In the light of these conflicting arguments and
divergent views, there is need for empirical work to establish whether or not, there is
adequacy of funds in the Institute, and whether funds allocated to the Institute have been
utilized effectively and efficiently to the attainment of the Institute 's objective. The main
objective of this study is to critically assessing the adequacy and utilization of funds in
relation to performance in the Nigerian Institute of Transport 'Technology. In carrying
out this work, we employed both questionnaires and personal interviews as me Ihods of
primary data collection, while textbooks, journa/s^annual report and schedule for annual
grants released to NITT were used as spurce of secondary data. Area or Cluster
sampling technique was a])plied. 'The decision to adopts area or cluster sampling method
is appropriate when we realizes that the number of manpower trained and retrained at
the Institute for the period under study covers various transport sub-sectors in the
transportation system of the economy, such as rail, highway, air, maritime and FMOT,
since training and retraining of personnel in all areas of transportation system is one of
the determinant factor to measure the relationship between the adequacy and utilization
of funds in the Institute. Area or Cluster sampling also allows for flexibility since several
forms of sampling could be introduced at various stages, in which the resultant sample is
bases on probability, which can be estimate from its characteriseics. The data collected
were statistically analyzed. . In carrying out this research work, several other statistical
measures were used in describing and analyzing data in a precise and meaningful way
for easy understanding. The justification for using variety of statistical techniques is to
enhance broader understanding of the problem study Finding* revealed that funds
allocated to the Nigerian Institute of'Transport Technology by the Federal Government is
inadequate. This is because the Institute budgetary proposal from 1999—2005 stand at
100%, which 90% was expected to have been provided by the Federal Government, but
the Federal Government had never provides the required percentage. The highest
percentage so far is 65.87% in 1999. It was also found that, the management of the
Institute was efficient and effective in carry out their assigned responsibilities. The made
judicious utilization of funds granted to them by Federal Government to achieved some
of the basic objectives that necessitated the establishment of the Institute which is that of
training and retraining of manpower. They also executed several other capital projects
with the funds allocated to them. Further findings revealed that the Nigerian Institute of
Transport Technology practice both incremental budgeting system and performance
programming budgeting system. This is because as their budget increases, the purpose in
which the budget was increased for and the responsibilities also increased. It was found
that inadequate funding is one of the major constraints that affect the Institute's
performance. The study recommended that, the Federal should provide more funds to the
Institute. This can be done by 80'; „ fixed on annual budget allocation to the Institute
yearly. This will enable them to carried out meaningful research work and to develop technological and managerial skills in transportation. Also, recommended is that, the
management of the Institute should set 20% fixed of revenues to be generate yearly
through the internal sources and ensure to work hard towards achieving it. Further
recommendations put forward for ihe Institute is that, the management of the NITT
should invest in research and development substantially from the funds allocated to the
Institute to produce qualitative equipment to compete with imported equipment instead of
depending solely on foreign equipment.
Description
THESIS PRESENTED TO THE POSTGRADUATE SCHOOL, AHMADU
HELLO UNIVERSITY, ZARIA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE DECREE [M.Sc] IN ACCOUNTING AND FINANCE
Keywords
ASSESSMENT,, ADEQUACY AND UTILIZATION OF FUNDS,, PERFORMANCE,, NIGERIAN INSTITUTE OF TRANS PORT TECHNOLOGY,