PROBLEMS OF DEBT RECOVERY IN PUBLIC ENTERPRISES (A CASE STUDY OF NATIONAL ELECTRICAL POWER AUTHORITY (NEPA). A RESEARCH PROJECT MATERIAL ON  BANKING AND FINANCE

ABSTRACT

Debt recovery is a major problem in our public Enterprises,  most especially the National Electric power Authority (NEPA). A lot of consumers ranging from the residential to the industrial/ maximum status, owed billions of Naria belonging to the authority through the consumption of electricity supply. The product ‘electricity’ is consumed before payment, so every electricity consumer is a debtor to the authority until her or she stop using the potential.

One may ask, can NEPA ever meet the demand of the present society? What about the increasing nature of the uncorrectable and bad debts?

We found that majority of the customers do not receive their bills timely and so could not settle them at the appropriate time. Due to late wills many resort to copy bills which does not represent the true position of bills consumers. We also discovered that majority of the consumers have problems of raise adjustments timely, there were also lack of cash offices, poor customers services and in-consistence power failure which does not encourage prompt payment of electricity bills consumed

CHAPTER ONE

INTRODUCTION

1.1              PROBLEM IDENTIFICATION

Problems of Debt recovery occasioned partly by mismanagement, inefficient supervision, poor revenue amongst others cannot be minimized in our society today cannot especially as it affects the public enterprises.

According to Udeme (1996). NEPA has an outstanding debt of about N3. 5b  owed by its prospective consumers. Besides that, the Nigerian Telecommunication PLC to, has about N5billion yet to the recovered from subscribers nation wide. This is not too far from the

N 2.8b owed the Nigeria ports PLC and of course; the Nigeria National shipping line (NNSL)  which have already faced liquidation as a result of poor debt management. This, certainly have contributed to the non-performance of many public enterprises in Nigeria.

Factors are responsible for the poor debt recovery experienced in  NEPA are:

(1)               The effect of untimely distribution of bills to customers.

(2)               The influence of poor customer services on prompt of electricity bills.

(3)               Effect of time rag on reconciliation of bills on customers.

1.2              RATIONALE OF STUDY

The main reason of this research is to find out the problems of Debt recovery in public Enterprises in Nigeria with special reference to NEPA management that will help item overcome the problem.

PROBLEMS OF DEBT RECOVERY IN PUBLIC ENTERPRISES (A CASE STUDY OF NATIONAL ELECTRICAL POWER AUTHORITY (NEPA). A RESEARCH PROJECT MATERIAL ON  BANKING AND FINANCE