Full Project-THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT

Full Project-THE ROLE OF ACCOUNTING IN THE CONTROL OF GOVERNMENT EXPENDITURE

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In most developing countries including Nigeria, government participation in economic activity is usually significant. One of the ways through which government has intervened in Nigerian economy is through the establishment of public enterprises and statutory bodies operating services of an economic or social character on behalf of the government. Since the colonial era, especially after independence in 1960, Nigerian public enterprises have witnessed a steady growth unit recently. Its Olisa (1988) pet it.

Beginning as a trickle in the period between this era of the second world war and Nigeria attainment of independence the creation of public corporations had risen to flood level since independence and his maintained a steady growth. The rational behind the establishment of public enterprises in Nigeria are many. Some of the reason include: generating revenue, they would add to available rational capital for the support of development and welfare programme, making to be controlled by a few individual, it possible for important profitable enterprises to be controlled by a few individual or group, organization certain critical activities national survival and economic stability and providing employment opportunities (Ademolukun 1983). However, after a long period of growing, starts intervention in the Nigerian economy through public enterprises, the and of 1980’s onwards had witnessed a reversed which has sometimes been dramatic in public opinion and therefore public policy.

This has been brought by the persistent losses which state enterprises that have been running over fears. Consequently, there has been a willingness to look at alternative policy strategies for the achievement of economic development. At the forefront of these strategies is the minimization privatization of public enterprises.

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