Enhancing the Performance of Electricity Distribution Companies in Nigeria via Internal Control System

Abstract

The study evaluates internal control system and performance of Electricity Distribution Companies in Nigeria. To achieve the objectives of the study, primary and secondary data were used. The secondary data include journals, textbooks and the publications of the Nigerian Electricity Regulatory Commission and the primary data was collected using a well structured and tested questionnaire from one-hundred and twenty (120) respondents in three (3) Electricity Distribution Companies in Nigeria. The respondents were selected through random sampling technique. The data collected was analysed using descriptive statistics and Chi-square with the aid of Statistical Package for Social Sciences (SPSS). The findings of the study suggest that weak internal control system can reduce the overall performance of Electricity Distribution Companies in Nigeria. The analysis also showed that effective internal control systems have significant impact on the companies’ service delivery and that effective internal control systems have significant impact on the companies’ revenue generation. The study concludes that lack of effective internal control system in Nigerian Electricity Distribution Companies is one of the major causes of poor service delivery to the members of the public and as a result of this; the revenue they obtain from the services cannot sustain them.

Key words: Internal Control System, Performance, Internal Audit, Corporate governance,  Enterprise Risk Management.