THE EFFECTS OF MANAGEMENT OF ACCOUNTS RECEIVABLES ON THE PERFORMANCE OF PUBLIC CORPORATIONS (A CASE STUDY OF NEPA)

ABSTRACT The management of accounts receivables plays a significant role in determining the financial performance and operational efficiency of public corporations. This study examines the effects of accounts receivables management on the performance of the National Electric Power Authority (NEPA), a public utility responsible for electricity distribution in Nigeria. Poor accounts receivables management often results in liquidity challenges, which adversely affect service delivery, project financing, and overall corporate performance. Through an analysis of NEPA’s financial data, customer payment patterns, and credit policies, this research investigates the relationship between accounts receivables and key performance indicators such as revenue generation, cash flow, and operational efficiency. A mixed-methods approach, incorporating both qualitative and quantitative data, was adopted to provide a comprehensive understanding of how ineffective receivables management impacts the corporation's financial health. The findings reveal that inadequate control over accounts receivables, including delays in customer payments and inefficient collection procedures, contribute significantly to NEPA’s operational challenges. The study recommends improvements in credit policies, enhanced billing systems, and more efficient debt recovery processes to mitigate the negative impact of mismanaged receivables on the corporation’s performance. This research provides valuable insights for NEPA and other public corporations struggling with similar issues, offering actionable strategies to improve financial sustainability and operational effectiveness.