The Effect Of Corruption On Effective Service Delivery System In An Organization

Project and Seminar material for Public Administration

The Effect Of Corruption On Effective Service Delivery System In An Organization


This research is aimed at finding the effect of corruption on effective service delivery in the public sector using Power Holding Company of Nigeria (PHCN) as a case study. The study seeks to examine the reforms, and effect on electric power supply reliability and stability in Nigeria. The major problems affecting the model been pursed especially in a developing country like Nigeria were also examined.

Over the past 25 years, electronic power sector has witnessed slow and steady decline leading to near failure of the system in 1999 at the beginning of the immediate past civil Government. The federal Government of Nigeria using national council of privatization (NCP) in 1998 had embarked on electric power sector reform program which gave birth to 18 companies under the auspices of PHCN. In February 2007, government of Nigeria (GON) awarded contracts of about $875 millions dollars across the country in actualizing some of the goals in the power sector reforms.

The study opined that if all identified problems militating against PHCN meeting the energy demand of the country is met by reforming the energy sector, in no time distance time Nigeria can boost of an electric power supply industry (EPI) that can meet needs of its citizens and place the nation as one of the industrialized country in the world. Data to be used in this study will be obtained from employees of PHCN and the general view of people through chi-square. At the end of this study, it would be discovered that corruptions has negative effect in service delivery system as well as in the economy at large. Various recommendations will be made on how these problems could be solved.

Chapter One


1.1 Background Information of the Study

Government has we all know are the major provider of essential needs to the masses at little or no cost. Corruption has been the major factor affecting the efficient service delivery in the public sectors. It has been described as the single line that defines the problems of the country, poor service delivery in the public sector.

Over the years, power has been supplied by National Electric Power Authority (NEPA) now PHCN has been very poor, this had caused and might continue to cause disappoint on the masses because it failed to meet their respective expectations. The public sector was largely characterized as ineffective and not sufficient by Chief Olusegun Obasanjo.

In the early 1960’s, the Niger Dan Authorities (DAN) and electric cooperation of Nigeria (ECN) then ,immediately after the Nigeria civil war, the management of ECN changed its nomenclature to National Electric Power Authority, currently known as Power Holding Company of Nigeria came to into effect on 31st may 2005 saddled with the responsibility of supplying power electricity in Nigeria.

A number of scholars have described the principle driving the forces behind the service delivery in public sector.

Capital Scarcity:

in the 1980’s, there was a recognized shortage of capital to finance the required expansion of power supply.

Economic Inefficiencies:

In most developing countries like Nigeria, the power sector has troubled by high technical losses, a lack of cost recovery pricing, poor maintenance, low equipment reliability, high level of corruptions, a crippling non-payment problem, mounting these factors have resulted in the commercial instability of power sector in Nigeria.

Persistent Poverty:

The lack of reliable power supply and other infrastructure has had a notably adverse impact on industrial growth and low development and this contributed to perpetuating poverty in Nigeria.

Debt and deficit:

The power sector in Nigeria is saddled with large debts accumulated from years of not changing cost recovery tariffs, not collected accrued debts from all customers, not disconnecting who do not pay but collecting bribe which would not have effect in the account of the management.


Unethical practices and behavior that are contrary to the practice commonly advocated by the constitution or which include looting public fund “lootocracy” misappropriation, money laundering abuse of the office.

The below diagram described the major factor affecting the effective delivery service in the public sector.

1.2 Statement of the Problem

In 2008, power generation by the PHCN dropped by 800 megawatts from 3,300 now to 2,500mw.Consequently, PHCN to 12 hourly zonal powers rational which was in force before it was later suspended. The vice chairman and Chief executive officer(CEO) Mr. Sulaiman Bello stated that the current facilities within the organization can give the country 4,000mw of electricity if the Nigeria gas company(NGC) sustains supply of natural gas to its thermal plans across the country- (Business day: fast news Nigeria and steels, 17 November 2008).

Presently, power generation is mainly from plants (about 6190) while hydro power generation is about 3190. Most of the generating assets in the public power sector are old, between 18 and 43 years. Lack of timely routine had caused significant deterioration in plant output and is a key explanatory factor in the lingering electric power crisis.

According to the industry watchers, more than two decades of poor planning and under investrnent had left a huge supply deficit and there was no new infrastructure in over decades despite rapid population growth and rising demand power. The sector was at the brink of collapse, average daily generation in 1999 was 1,750mw (almost to 10 years, the situation was not remarkably different as available capacity output is still less than 2.5gw). Add this to the fact between 1990 and 1998, no new capacity was added. The focus has been on rehabilitation of existing infrastructure.

Vividly, corruption is not the only factor affecting effective service delivery in the public sector and basically in PHCN also the inability of power management planning which make it possible for its officials to exploit and exploring its resources. Before the payment of electricity bill through banks, there was no adequate management internal control of revenue receivable and expenditure incurable. For several years, despite consistent perceived cash investment by the federal government of Nigeria, power have been the standard for the Nigerian populace and are now seen as normal by the citizens of the country.

Corruption occurs most in public service which hindered efficient and effective service delivery. More so, one would rightly justified that to say that the masses and the public officials contributes to how service delivery is insufficient, It is, therefore, the inherent for this study to examine the relationship between corrupt practices and quality of service rendered in the public sector.

1.3 Objective of the Study

  1. To identify the causes of corruption in the public sector of the Nigeria economy.
  2. To examine the effect of corruption on service delivery in the public sector and on the economy at large.
  3. To highlight the adverse effect of insufficient power supply in the Nigeria economy.
  4. To know that corruption is the major factor affecting quality service delivery in the public sector.
  5. To recommend possible solution to the problem of corruption, low rate of power supply and its effect in the economy as a whole.

1.4 Research Hypotheses

Hypotheses one
  • Ho: There is no relationship between corruption and effective service delivery in an organisation.
  • Hi: There is a relationship between corruption and effective service delivery in an organisation.
Hypotheses Two
  • Ho: The Nigerian public sector is not corrupt
  • Hi: The Nigerian public sector is corrupt

1.5 Significance of the Study

It has been clearly stated and noted that government in any country is about providing essential services to the masses through the ministries and extra-ministerial departments (i.e. ministry of power and steel, ministry of education) etc in order to achieve increasing efficiency and effectiveness in service delivery.

However, these might not be easy to achieve where corruption exist thus, this research is aimed at suggesting reasonable solutions at reducing corruption to its lowest minimal in order to enhance adequate service delivery system. In addition, it is understood that corruption has adverse effect on service delivery in the public sector but there are some other factors hampering effective service delivery. Take for instance, the power holding company of Nigeria lacks internal control, monitoring, accountability and adequate planning within its staffs which brings about ineffective service delivery e.g., low current and inconstant power supply.

The knowledge gained from this research would help public administrations to be more effective and efficient in discharging their respective duties. It will also serve as a basis for further research to carry upon and make positive change on service delivery system in the public sector.

1.6 Scope and Limitation of the Study

This study is primarily concerned with the effect of corruption on effective service delivery system in an organisation. This study is limited to Power Holding Company of Nigeria (PHCN). The issue of electric generating capacity is briefly discussed and the issue of privatization of the institution that is PHCN is not covered. The study has identified areas of factor affecting corruption and service delivery in the public sector and subsequently provides possible solution using PHCN as a case study. The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following.

  1. Availability of research material: The research material available to the researcher is insufficient, thereby limiting the study
  2. Time: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7 Definition of Terms


Wrongdoing on the part of an authority or powerful party through means that are illegitimate, immoral, or incompatible with ethical standards. Corruption often results from patronage and is associated with bribery.

Service Delivery:

A service delivery framework (SDF) is a set of principles, standards, policies and constraints to be used to guide the designs, development, deployment, operation and retirement of services delivered by a service provider with a view to offering a consistent service experience to a specific user community in a specific business context.


A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems–they affect and are affected by their environment.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to have a critical analysis of the effect of corruption on effective service delivery system in an organisation.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations are made, which in the opinion of the researcher will be of benefitin addressing the challenges of poor service delivery in an organisation.

5.2 Summary

This study aimed at havinga critical analysis of the effect of corruption on effective service delivery system in an organisation.(NUMBER OF OBJECTIVES) were raised.

These objectives include:

To identify the causes of corruption in the public sector of the Nigeria economy, to examine the effect of corruption on service delivery in the public sector and on the economy at large, to highlight the adverse effect of insufficient power supply in the, to recommend possible solution to the problem of corruption, low rate of power supply and its effect in the economy as a whole

5.3 Conclusion

Based on the above findings pertaining to the objectives of the study the following conclusions are drawn.
This analysis calls for a reform of the PHCN and other public organisations to increase accountability as a way of curbing corruption. It is hopeful that if the reform measures suggested in this paper are implemented, there will be some reductions in the level of corruption in the public sector. This will make the public sector to be more efficient and effective in the execution of its job duties and become more responsive to the needs of its citizens.

5.4 Recommendation

The public service must also be reformed if corruption is to be eradicated. Most public servants are poorly paid and officials often supplement their pay with their second jobs or payoffs. The government to make it an instrument for meeting the basic needs of the people in the areas of food, shelter, education, security of life and properties and other social services that create a sense of belonging in the people rather than a state that is, perceived by the people as an alien force meant to exploit, oppress and brutalise them. Reform policies must in fact aim to create jobs and reduce the pressure on those already employed to make the best out of their employment as quickly as possible. Law against corruption must not only be made they must be enforced as a negative campaign against corruption. A viable legal framework that enforces the law without political favouriism or arbitrariness, such a system deters those tempted to engage in corrupt acts and encourages the public to resist criminal conduct by officials. In this regard, the promulgation of anticorruption laws in Nigeria is in the right dimension, the agencies of implementation must be effective. Good leadership is sine-qua-non to reduce corruption in Nigeria hence a guilty leader must be punished accordingly irrespective of his political status.

Given the central role played by the civil service in Nigeria, it is essential that public goods and services should be evenly distributed to all citizens. A corrupt bureaucracy will lead to a decrease in the quality of goods and services being provided by the government, which will increase public cynicism.

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