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

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.

ASSESSMENT OF ADEQUACY AND UTILIZATION OF FUNDS IN RELATION TO PERFORMANCE IN THE NIGERIAN INSTITUTE OF TRANS PORT TECHNOLOGY

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