The Role Of Store Function In The Public Sector (A Case Study Of Ministry Of Finance Owerri)

Project and Seminar Material for Purchasing and Supply (PS)

The Role Of Store Function In The Public Sector (A Case Study Of Ministry Of Finance Owerri)


This research work tries to appraise the role of stores function in public sector Ministry of finance, Owerri, as a case study. The research was motivated to review the role of stores functions because a lot of money is pent annually by government buying different classes of materials / goods.

The research wondered whether these materials are taken good care of by stores personnel. The research study starts with the chapter one which begins with chapter one which begins with the background of the study and brief history of the organization, statement of problems, objectives of the study, significance of the study, scope of the study, research questions, hypothesis, limitations and definition of terms.

Chapter two is the review of related literature on stores functions. This is followed by tree which studied research methodology and the methods used in collecting and analysis of data.

Chapter five is the summary, conclusion and recommendations made by the researcher. On these finding, more recommendations are made by the researcher aimed at improving stores function in public sectors and also private sectors.

Table Of Contents

Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table Of Contents

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objectives of the study
  • 1.4 Research questions
  • 1.5 Statement of Hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitation of the study
  • 1.9 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Definitions of stores
  • 2.3 Responsibilities of the store functions
  • 2.3.1 Economy
  • 2.3.2 Identification
  • 2.3.3 Receipt
  • 2.3.4 Inspection
  • 2.3.5 Issue and dispatch
  • 2.3.6 Stock records
  • 2.3.7 Stock control
  • 2.3.8 Stores Accounting
  • 2.3.9 Stock taking
  • 2.3.10 storage
  • 2.3.11 security of stores
  • 2.3.12 Materials Handling.
  • 2.4 Organization of stores
  • 2.4.1 Policy directive
  • 2.4.2 Internal Organization
  • 2.4 Position within the supply organization.
  • 2.6 Relationship with other Department
  • 2.6.1 Production Department
  • 2.6.2 Design and Engineering Department.
  • 2.6.3 Quality control and Inspection Department
  • 2.6.4 Finance department
  • 2.6.5 Transport department.
  • 2.6.6 Purchasing Department
  • 2.6.7 Personnel department
  • 2.6.8 Sales Department
  • 2.6. 9 maintenance department.

Chapter Three

3.0 Research Methodology

  • 3.1 Research design
  • 3.2 Questionnaire design
  • 3.3 Sources /method of data collection
  • 3.3.1 Primary source
  • 3.3.2 Secondary source
  • 3.4 Population /sample size
  • 3.5 Sample Technique
  • 3.5.1 The survey
  • 3.5.2 Observation
  • 3.6 Validity and Reliability of measuring instrument
  • 3.7 Data analysis method

Chapter Four

4.0 Data Presentation and Analysis of Data

  • 4.1 Presentation of data
  • 4.2 Analysis of data
  • 4.3. Test of Hypothesis

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendations
  • References
  • Appendix
  • Questionnaire.

Chapter One

1.1 Introduction

1.1 Background Of The Study

The Imo state Ministry of finance is located at Port Harcourt road the Imo state capital. The ministry of finance is among the ministries of the state government. It came to being on creation of IMO state in 1976. The ministry has ultimate goal of working towards the attainment of healthy economic growth of the state.

The ministry is now structured in department, following the promulgation of the civil service reform Decree 43 of 1988 that was implemented in 1989. at present, there are six functional departments in the ministry of finance. They are;

  1. Department of Administration and finance
  2. Department of account
  3. Department pf planning, research and statistics.
  4. Department of Investment and Loans
  5. Department of Treasury Operations
  6. Department of Accounts Production.

The ministry’s responsibilities cover;

  • Financial policy
  • Financial instruction
  • Taxation (policy)
  • Control of revenue collection
  • Licensing (financing aspect)
  • Audit of public accounts.
  • Boards of Survey and boards of inquiry.
  • Advise on stores matters.
  • Stock verification exercise on government stores.
  • Banking and so on.

A store is section of the supplies division of the administration and finance department. At present the imo state ministry of finance operates two stores, the administration, which is the sub-stores. The administration stores control the other store and also feed the sub-store. Every organization, be it private or public is established to meet some needs while some are established for profit maximization, others are for services.

Many countries, the world round have shifted from politics to welfare or services countries. Thus, it is the wish of most government now to take care of the welfare of their population/citizens. These include; provision of security, good health service, good infrastructures, and so on.

To afford all these and many more, each government established various agencies to satisfy the social needs of the people. Against these background therefore, it has become necessary that every public sector should have a store unit. The stores unit of an organization plays a complementary role with other units of an organization to achieve the goals for which the stores unit play in a public sector that warrants the need for this project.

Therefore, for this purpose, the stores unit of Imo state ministry of finance has been chosen as a case study.
Stores management is an important aspect of purchasing and supply, though it’s a new course in Nigeria but has gained enough ground over the years. Public sector at present emphasizes much on their store function. In trying to review the functions of store in an organization, Morrison (1969) listed the following;

  1. To make available a balance flow of materials components, tools, equipment and other commodities necessary to meet operational requirement.
  2. To provide maintenance material, spare parts and general stores as required.
  3. To receive and issue work in progress and finished products.
  4. To accept and store scrap and other discarded materials as it arises.

Uzor (2003:3) listed the following functions of stores;

  1. To receive, store, control and issue all office equipment and furniture and stationary in an organization.
  2. To ensure that adequate health and safety precautions are taken in relation to the whole stores operations.The ministry of finance is one of the twelve ministries of the Imo State government and it came to being on creation of Imo in 1976.

1.2 Statement Of Problem

Store function as earlier stated is necessary for the accomplishment of the organizational goals, be it public or private. At present, while private organization are adopting new strategies technologies and employing professionals within store unit, it is quite unfortunate to note that the stores unit in the employing professionals within the store unit, it is quite unfortunate to note that the stores unit in the public sector is diminishing or dwindling.

A closer interaction shows that the store functions of the sector suffers from non-availability of fund before funds are released to the store for the purchase of material needed in various department fields, it will be too late resulting in most cases to stock out which causes their workers to be idle or a situation of inadequate use of human resource which are being paid for.

Another problem from the research is non professional in the stores. From the research it was discovered that most staff that carries out stores functions are non- professionals thereby causing a lot of problems.
A closer look shows that store unit of the public sector are untidy which is as a result of non- professional carrying out stores function. The ministry of finance being government establishment is a victim of the problems.

The stores of the imo state ministry of finance as indicated earlier serve other department in the ministry and other ministries yet no effort is made to bring it up to an acceptable standard by equipping it with professionals. It is against the back drop of these and many work that has motivated the need for this research. Therefore, the work is to analyze and investigate the role of store function in ministry of finance, Owerri, Imo state.

1.3 Objective Of The Study

The main objective of this work is to examine the role of the stores in the public sector and Imo state ministry of finance in particular. The study in specific term tends to:

  1. Find out the activities carried out by stores functions in the ministry.
  2. Find out the quality of stores personnel in the ministry.
  3. Find out the relationship of store with other departments of government ministries.
  4. Review the current stores operations in government ministries-ministry of finance.
  5. Find out if the stores unit of ministry of finance has been performing its functions
  6. Find out the contributions of stores to the attainment of the objectives of the ministry.

1.4 Research Questions

  1. Does the public ministry of finance have stores unit/department?
  2. Does the public sector make use of the professionals in running the stores?
  3. Does the role of stores functions load to improved productivity in the public sector?
  4. What are the factors militating against effective stores functions on the ministry of finance?
  5. Is there any relationship between the stores and other departments?
  6. What roles do the stores functions play in an organization?.
  7. Does efficient stores function enhances services delivery in your organization?

1.5 Statement Of Hypothesis

Hypothesis 1
  • Null Hypothesis (Ho): The stores function does not play any important role in government ministries
  • Alternative Hypothesis (Hi): The stores function plays any important role in government ministries.
Hypothesis II
  • Null Hypothesis (Ho): Efficient stores functions are required for efficient service delivery in the public sector.
  • Alternative Hypothesis (Hi): Efficient stores functions are required for efficient service delivery in the public sector.

1.6 Significance Of The Study

The significance of this study is necessary because it will contribute positively towards effective store stores function in the public sector in general and ministry of finance to see the need for effective stores functions.
This need will motivate the management of the ministry to action that will lead to efficiency and job satisfaction which is the objective of every public sector.

In the need for professionals, this study will also provide the public sector with scientific and useful information, which will guide it in the formation of stores policies by giving such attention to this subject matter- effective stores functions. This study will stimulate the interest of the public sector (government) especially the Imo state ministry of finance in effectives stores function as a means of motivating their workers which will lead to increase in productivity/ serviceability.

This study will also bring reforms is put in practice by the sector in their stores. It tends to solve the problems being encountered by the stores. The study will also service as a reference materials not for the public sector, but to those who are fully employed in purchasing and supply functions, students, lecturers, and other researchers will benefit from the research work. Its findings will add also produce a report, which may give rise to further debate, discussion or research on stores function. Above all, a research work is a pre-requisite for the award of Higher National Diploma to the researcher.

1.7 Scope Of The Study

This study is delimited in nature. It is only made to cover the public sector and only ministry of finance , Owerri. The reason for limiting this work only in the ministry of finance is that everything pertaining stores and its functions being controlled by the finance department.

1.8 Limitation Of The Study

The first limitation of the study is the limiting of the study to only the public sector and also only ministry of finance , Owerri. Another limitation suffered by the researcher is lack of materials. There was also the problem of respondents hiding information.

Finally, the finance to equip the reach work was inadequate.

1.9 Definition Of Terms


A store can be defined as any space reserved and equipped for holding materials, which are awaiting dispatch to customers for further processing or final consumption.


It is an assumption is statement made well in advance of observation about what can be expected to occur concerning one more populations under state or given condition.

Public Sector:

These are government owned establishment, e.g ministries and so on.

Store Function:

These are the series of activities that are carried out in the store from the date of delivery to the time it is dispatched to the appropriate user.

Board Of Survey:

This is a board constituted in the ministries/ extra ministerial department to take charge or to be in- charge inspection.

Board Of Inquiry:

This is a body constituted in the public sector to handle losses of stores in government stores.

Chapter Five

Summary Of Findings, Conclusion And Recommendation


This chapter was fashioned to bring summary of findings and conclusion to the project. Recommendations will also be made thereafter.

The study attempts to examine the experience associated with the role of store function in the public sector using ministry of finance Owerri.

5.1 Summary

This research work was based on the role of stores function in government/public sector, with ministry of finance Owerri as the case study.

The chapter one of the research work studied so many things like the background of the study and the historical background of the ministry of finance, Owerri statement of the problems, objective of the study, research questions, hypothesis, limitation of the study and definition of terms.

Chapter two of this research reviewed existing literature of the role of stores function. Chapter three highlights the research methodology, the methods used in gathering information and data analysis method.

Chapter four of the study focused on the data presentation analysis of research, questionnaire and test of hypothesis in the study. The researcher analyzed twenty five (25) questions and tested two hypotheses.

5.2 Conclusion

Based on the test of hypothesis carried out, we can conclude that stores function pays an important role in public/government sectors, especially in Ministry of Finance, which is the source of all procurement. It was also discovered from the test of hypotheses that effective stores function is a required for efficient service delivery in the public sector. From other findings from the research question, it was seen that the ministry of finance suffers some lapses. Therefore, such lapses or loopholes should be closed.

5.3 Recommendations

Having studies the activities, problems and shortcomings of the stores functions of the ministry of finance, the researcher wishes to make the following recommendations which if implemented, will enhance the role of stores functions of the ministry of finance and other public sectors or government establishments in Imo state.

  1. The current civil service reforms lay much emphasis on professionalism. The number of professional staff in the stores of ministry of finance is not encouraging. Effort should be made to employ more professionals from the yield of purchasing and supply or stores management to enhance efficient operation of the role of stores functions.
  2. Since the most of the stores staff/ personnel are not professionals and have not the pre-requisite qualifications for stores, this research recommends that workshops/seminars should be organized for them to enable them know the basis of modern stores management. This will not only enhance their status but will not only enhance their status but will also increase productivity.
  3. Spot checking and stocktaking are very important activities in any storehouse and in respect to this, separate inspection department and personnel be employed.
  4. The ministry should improve the working conditions of their staff by providing them some things like free accommodation, free transportation, and good working environment. Their salary structures should be improved so as to enable them meet the present hard economic situation and also work to achieve the organization’s interest first before their personal interest.
  5. The ministry should equip its stores adequately most especially in the areas of storage equipment.
  6. This research also recommends that the ministry should make fund available as and when required to enable and enhance the running of the stores.
  7. It also recommends that stores personnel’s should be given training in information technology and access of computer as this will enable them to face the challenges of the new millennium.

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