5,000.00 3,000.00






The financial function has always been important in management irrespective of any difference in structures, Ownership and size. The financial organization of any business enterprise ought to be cable of ensuring that various aspects of its financial activities including planning and controlling are carried out at the highest possible degree of efficiency. The profitability and stability of a company depends on its accounting and cost control system; the efficiency of its staff and the management’s adherence tot eh internal control system as well as to the general financial policy of the company.

Most of the studies conducted on business finance have laid more stress in comparing financial results of public and private sector undertaking vis–a–vis profitability. The “Fiscal approach has often over shadowed the fundamentals of internal financial management while it is obvious that factors in the financial market, social, economic, political and other external consideration significantly influence internal decisions, it is desirable that we focus attention upon “means” and not the “result” alone. Profitability is the result of the means and methods employed in planning controlling various functions of business.

Dynamic profit planning and control is a broad approach to accomplishing the management efficiency, and management function, its development and usefulness have significantly increased in recent years. It is specially significant in that the functional areas of management are bought into focus, a broad mutual enrichment of function between management and accounting that is a vital feature in the successful life of progressive enterprises. However, it full potential is frequently eclipsed in public enterprises by the gap between the mechanics of the system and conceptual and pervasive attitude towards public undertaking and Nigeria Breweries in particular.

1.1.1 Historical Background of the Company Nigeria Breweries Plc

Nigeria Breweries Plc was established in Lagos in 1946 with the visionary leadership of Heineken International and Unilever of London with other distributive firms operating in Nigeria. It has since realized operational excellence and has become a model corporate citizen of Nigeria. In 1949, it launched Star Lager Beer, Gulder, in 1970, Legend Extra Stout in 1992, Maltina in 1979, Amstel Malta in 1998 and current Heineken in 1996. It builds and opened its Lagos brewery in 1949, Aba Brewery in 1957, Kaduna Brewery in 1963, Ibadan Brewery in 1982 and Enugu Breweries in 1994. In Enugu presently it has expanded its brewery plant in what will become the largest brewery in African. The overall purpose of Nigeria Breweries Plc is to put a smile on every face, to spread refreshment and enjoyment to all Nigerians. Also to enable people relax after a hectic days job, to avoid producing a nation full of stressed people given our numerous problems of traffic jams, no NEPA, no water, no money, no jobs with a lot of dependents etc. Nigeria Brewery Plc takes this mission of bringing enjoyment to all Nigerians, also to look after your health but actually to go beyond that and just have plain fun. There is a well. Known adage that says: all work and no play makes Jack a dull boy.

Having known the historical aspect of the establishment of the Nigerian Brewery Plc it is therefore worthy to touch on its organization set–up; and its financial functions in line with this study being carried out in the area of the company’s profit planning and control for aiding management in accomplishing the objectives within the social and economic constraints.


Financial mismanagement and weak control have been a problem of many public and private establishments. The problem of financial management and poor financial control by an organization impedes its growth and development. The present trend of “get rich quick” has made many Nigerian breweries’ workers in positions of trust to abuse their trust and misappropriate or embezzle the company’s funds. These misappropriations of funds manifest itself in different forms such as falsification of receipts and invoices; carting away of stock material without proper documentation, etc. The problem of poor control has led to the increasing rate of loss of company’s resources; the company operating below targeted figure with minimal profit margin; and making poor returns.

1.2.1 Brief Summary of the Problems

1. Mismanagement of resources as a result of poor financial control in the organization has impeded its growth and development.

2. The present trend of “get rich quick” has made many Nigeria breweries’ worker in positions of trust to abuse their trust and misappropriate the company’s funds.

3. Misappropriation of funds materials itself in different forms such as falsification of receipts and invoices, carting away of stock materials without proper documentation.


The primary aim of this study is three folds;

I. To examining the existing financial control in Nigeria breweries Plc

II. To investigate the present system of cost control and material management of the company.
The researcher will make recommendations that will help the company to eliminate waste and better the chances of achieving its goals. The study also strives to bring into light such weaknesses which in future are likely to impede the growth and development of the company. It also searches out the means which will enable the organization to achieve its socio economic objectives with minimum cost.
The study of this manner also will take into account public and company’s policy. It recognizes the fact that the socio-economic changes that already occurred and other changes that are under way will make the task of financial planning and control more important in future. The expected changed may include: structural changes in the economy; increasing number of the organizational departments associated with comparatively rapid expansions of the company; continually rising price levels and variations in the types of financial institutions will required the use of sophisticated techniques.

The study is based on the information collected from the key officers of the company. Explicit in the exposition, however, is the realization that a profit planning and control programme must tailor – made to fit each particular situation and that real essence of financial management is flexibility. Mean and ways of eradicating fund mismanagement, profit planning and adequate control measures are emphasized upon in the study to facilitate the inter-relationship of the areas concept and techniques.


The study is limited to the evaluative of resources, organization and services as well as the financial control measures of the company. It is also based on the available data collected through the use of questionnaires and other materials which the researcher could lay hands on. The period for the study covered from 1999to 2002 financial year. The researcher is not meant to expose the financial functions of the managers or the key officers, not to serve as an attack to the authority, rather it is an academic contribution giving constructive criticisms for the sole aim of evaluating the role of the finance department of the company in planning and control of its funds. Thus the time factor and financial constraints, the researcher is limited to do justice to the subject matter between periods 1984 – 1988.


The study attempts to provide an orderly frame work for analyzing the major financial problems of Nigeria Breweries emphasizing the separate steps of planning implementing and controlling the various functions of the finance department of the company. The study strives to give a broad vision of the subject with a minimum of attention to mechanics intricacies of accounting, the non essential details. The study as earlier pointed out is an enquiry into the means and therefore compares the evaluation and performance of financial policies and methods of the company. Profitability which is the result of planning and control is not compared. The existing system of financial planning and control in Nigeria Breweries is critically examine and analyzed.


1. Has the present financial control system in Nigeria Breweries helped in checking the issue of fraud, waste of resources and staff in efficiency? In addition.

2. Is the company’s financial policy adequate to present financial abuse?

3. Is the company’s financial compensation to staff adequate to present staff involvement in fraud?
The ever increasing influence of government in business demands the complex financial rules and regulation to be clearly understood in formulating financial policy.
The availability of mechanized methods as control devices, the collection and analysis of information also suggests that financial policies and practices can become exacts.

1.6.1 The Null and Alternate Hypothesis

H0: The present financial control system in Nigeria Breweries cannot eliminate the incidence of fraud.

Hi: The present financial control system in Nigeria Breweries can eliminate the incidences of fraud.

H0: Does staff efficiency and productivity not attribute to the incidence of fraud in Nigeria Breweries.


The rates at which accounting officers are involved in financial irregularities and misappropriation of the funds have made the job of auditors (Internal and external) more challenging of the finance department of the company in proper planning and control of its fund; thus the time factor and financial control. However, the problem remains that some of the auditor’s findings are never implemented. No wonder then why the government and property. The establishment of the ‘panel’ gave rise to recovery of huge amount of money hitherto forgotten due to non-implementation of audit reports. This study will therefore be of help to Nigeria Breweries Plc, 9th Mile Corner, Enugu in particular, and other business organizations in general to modify restructure and strength the machinery if necessary for achieving greater and effective control over public funds. Also this will be a guide to scholar, researcher or writers who may wish to carry further study on the financial management of the economy. Good financial control measures will guide management on how to take decisions for the day-to-day activities of the business. If the financial statements are not properly analyzed and interpreted, interested parties like the equity shareholders, the creditors, the government and the general public will continue to be misled. This study is therefore intended to provide a guide to entrepreneurs in equity shareholding, Lawyers, creditors and the management of the business on how best to state the affairs and control cost. Moreover this study has a significance of enabling any organization that adheres to control techniques to achieve effective control measures.


There are some terms used frequently in this research work which are of great importance to be defined. Words have meanings and their meaning tends to differ directly or indirectly depending on the contexts and usage. It is against this background that an attempt is made to define some of these terminologies as used in this study.

1. Finance: It is a term used in referring to the management of money. It refers to and many concerning money.

2. Control: This word as used in the study refers to measures adopted in regulating excessive waste of materials and funds of a company that tends to curb the incidence of fraud.

3. Cost: This refers to expenses incurred in the course of realizing or implementing a project; it could be fixed variable and semi variable in natures.

4. Fraud: This term as used in this work refers to a criminal act, loss of fund through a wrong means or alternation of financial records as originally recorded in books of accounts.

5. Costing: This refers to the subject and process of estimating expenses revenue and profitability of production process of the company.

6. Vouchers: This is an accounting document used in analyzing daily expenditure of the company for approval by all the authorized signatories.

7. Stock materials: This term refers to both fished and raw materials; a file of raw materials and finished products meant for sales

8. Internal Control: This is a internal technique or measure adopted by the company that checks against mismanagement of funds and materials.

9. Internal Audit: This term as used refers to the department allocated with the authority to work in such a manner a to afford checks on the routine transaction of day to day work by means of the work of one person being proved independently by another, or these work of one person being complementary to that of another and so affording a means whereby fraud is easily prevented or detected


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