ABUBAKAR TAFAWA BALEWA UNIVERSITY

BAUCHI

Industrial Training at Gombe State Investment

And Property Development Company Limited

A Report Submitted in Partial Fulfilment of the

Requirement for the Course SIWES II (Students Work
Experience Programme)
By

Sani Ahmadu
Student Reg. No: 14/38028D/6
Business Education (Accounting)
Industrial Based Supervisor: Mal. Hamisu Garba
University Based Supervisor: Dr. Gambo Ibrahim

March, 2018.
TABLE OF CONTENT

Cover page

Table of content

1) Introduction
2) Background of the Organisation
3) Objectives of the Organisation
4) Nature and Examples of the Organisation’s Facilities
5) Nature and Examples Organisation’s services, goods or products
6) Activities carried out during the period of the exercise
7) Experience (s) gained
8) Problem (s) encountered
9) Conclusion
10) Recommendations

2
INTRODUCTION

In the earlier stages of Science and Technology Education in Nigeria, students were

graduating from their respective institutions without any technical knowledge or working

experience. It was in this view that students undergoing science and technology related

courses were mandated for the Students Industrial Work Experience Scheme (SIWES) so

as to enable them have a technical knowledge or work experience before graduating from

their various institutions.

The Students Work Experience Scheme (SIWES) was established by the Industrial

Training Fund (ITF) in the year 1973 to enable students of tertiary institutions to have

basic technical knowledge of industrial works based on their courses of study before the

completion of their program in their respective institutions.

The scheme was designed to expose students to industrial environment and enable them

develop occupational competencies so that they can readily contribute their quota to

National, Economic and Technological Development after graduation.

The major benefits accruing to students who participate conscientiously in the Students

Work Experience Scheme (SIWES) are the skills and competencies they acquire. The

relevant production skills remain a part of the recipients of the Industrial Training as life-

long assets which cannot be taken away from them.

OBJECTIVES OF SIWES

The Industrial Training Fund’s policy document No. 1 of 1973 which established SIWES

outlined the objectives of the scheme. The objectives are to:

1. Provide an avenue for students in higher institutions of higher learning to acquire

industrial skills and experiences during their courses of study.

3
1. Prepare students for industrial work situations that they are likely to meet after

graduation.

2. Expose students to work methods and techniques in handling equipments and

machineries that may not be available in their institutions.

3. Make the transition from school to the world of work easier, and enhance students’

contact for later job placements.

4. Provide students with the opportunities to apply their educational knowledge in real

life situations, thereby, bridging the gap between theory and practical.

5. Enlist and strengthen employers’ involvement in the entire educational process

through SIWES.

BACKGROUND OF GOMBE STATE INVESTMENT AND PROPERTY

DEVELOPMENT COMPANY LIMITED

Gombe State investment and property Development Company Limited (GSIPDC) is a

limited fully owned and controlled by Gombe State Government. It was fully incorporated

on 13th May, 1999 with an initial paid-up share capital of ₦20m to serve as the investment

aim of the state Government.

The paid up capital was increase to ₦800m in 2007 and subsequently to ₦2.0B in 2011.

The company which is wholly owned by the state government is change with the

responsibility of promoting viable ventures in industry, commerce and property

development. It also provides advisory services to individual and corporate bodies by

charging minimal fees. The core business of the company centers on business

development. It involves business and investment promotion and investment appraisal with

4
private sector and other development institutions through joint ventures and partnership.

OBJECTIVES OF GOMBE STATE INVESTMENT AND PROPERTY

DEVELOPMENT COMPANY LIMITED

 To manage state government investment in various sectors of the economy and

ensure that the state fully participates in all Federal Government investment

programmes.

 To promote and develop commercially viable industrial projects in the state in

collaboration with local and foreign investors.

 To identify and met the housing and commercial property needs of the citizens of

the states by constructing house and shopping malls in major towns throughout the

state.

 To advise and educate indigenous entrepreneurs on modern business techniques.

 To be an active player in the Nigeria capital market and enlighten the citizens on

the operations of the market.

 To generally serve as a catalyst for the rapid economic development of the state.

ORGANIZATION STRUCTURE OF GOMBE STATE INVESTMENT AND

PROPERTY DEVELOPMENT COMPANY LIMITED(GSIPDC).

Gombe state investment and property Development Company limited presently consist of

3 departments namely:

 (1) Estate and property development department.

 (2) Business and investment department.

 (3) Support services department.

The company secretarial unit and the Audit unit report directly to the managing

5
 Director/CEO. The organization chart is as shown below.

ORGANIZATION CHART

MD/CEO

AUDIT CS/LS

Estate &
Support Service Property
Dev. Dept
Business & Investment
Prom. Dept

Human
Fin.&
Resource Commo Estate Property
Acc. Investm Bus.
& Gen. dity Mgt. Dev.
Unit ent unit Dev trading
Admin Unit Unit
Unit unit

NATURE AND EXAMPLES OF GOMBE STATE INVESTMENT AND PROPERTY

DEVELOPMENT COMPANY LIMITED(GSIPDC) FACILITIES

 NIKO plastic industries Limited

This is an associated company promoted by GSIPDC in conjunction with a foreign

partner Hynsung Hydraulic Machinery company limited and other local investors. The

company produces shopping bags and it located in the Gombe commercial Area.

 Investment Motel Bajoga

This outfit came into being as a result of the taking over of the old state Hotel Bajoga.

The facility was upgraded and additional chalets constructed while the

Kitchen/Restaurant and Reception/Bar areas were improved as well. The motel is

currently leased out to Mhamdi Nigeria who also manages to Gombe Jewel Hotel,

6
 Kaduna and Jewel suites, Gombe.

 Gombe Securities Limited

The company which is a subsidiary of Gombe state investment and property

development company Limited was incorporated on 18th December, 2009 as a

Broker/Dealer and investment Adviser. It provides stock broking services to the general

public.

NATURE AND EXAMPLES OF GOMBE STATE INVESTMENT AND PROPERTY

DEVELOPMENT COMPANY LIMITED (GSIPDC) GOODS, PRODUCTS &

SERVICES.

Property development is another important business activity the company engages in.

GSIPDC has invested in the development of Shongo and Tumfure housing estates in

Gombe city with a combined number of 490 two and three bedroom houses. Another estate

consisting 450 two and three-bedroom house is being developed along Dukku/Kano road

in Gombe metropolis. Loans for development of these estates were sources from the

Federal Mortgage Bank of Nigeria and Shelter Afrique in Kenya.

7
Gombe inland container freight station;

 This is to enable easy delivery of goods to and from

industries/importers/exporters.

 Land with certificate of occupancy without encumbrance is provided.

 State government will provide infrastructure the entire site.

 Federal ministry of transport will need to approve prospective investors.

 Competent investors to partner with the state government to development and

manage the facility on build own operate and transfer basis.

Gombe Export free zone near Gombe Airport, Lawanti;

 The development of the Gombe Airport provides an opportunity to develop a

tax free zone within the airport surrounding.

 Government will provide industrial shades to enable investors establish

manufacturing industries to take advantage of incentives provided by Nigerian

Export processing zone Authority.

Coal mining & establishment of coal fired electricity power plant;

 The state has huge deposit of coal in Akko and Kwami LGA which is being

partially exploited by Ashaka Cem. Plc.

 Investors could produce and sell electricity power with this cheap raw material.

ACTIVITES CARRIED OUT AT GOMBE STATE INVESTMENT AND

PROPERTY DEVELOPMENT COMPANY LIMITED (GSIPDC)

1. Preparation of payment voucher.

2. Documentation of vouchers.

8
 3. Preparation of store ledger account.

4. Preparation of payment slip.

5. Preparation of payroll.

EXPERIENCE(S) GAINED

As student undergoing SIWES training in Gombe investment and property

development company limited, I was opportune to have participated in various

activities. Assignment were always given to me by my industrial training based

supervisor which has helped in developing some of my skills. Below are some of the

experience acquired/gained during the periods of my industrial training.

1. I have learned the procedure for preparing payments voucher.

2. I have gained an experience on the methods of stock valuations.

3. I have learned the way of calculating the salary of staff of different grade level.

4. I have learned the way of calculating the call-over

5. I have learned the way of payment voucher documentation.

FINANCE UNIT

This is a unit in the company that is saddle with the responsibilities of all financial

engagement. Finance unit is a disciple concerned with determining value and making

decisions. The finance functions allocate resources, which includes acquiring, investing

and managing the company’s resources.

However, the financial accounting is also a function that is performed under the finance

unite of the company. The financial accounting is the recording of a business, financial

activities and the periodic preparation of financial reports.

9
Finance unit of the company also performs the functions financial control i.e the unit costs

and expenses in order to control them in relation to budgeted amounts. A financial

blueprint for the financial future of the company it is also carried out by the finance unit of

the company.

The activities carried out in this unit include the following:

Voucher preparation

Pay roll computation

Financial planning

Financial decision

Documentation of payment voucher

VOUCHER PREPARATION

Under voucher preparation the finance officer of the company outline the mode in which

voucher is to be prepared. It may include:

 Voucher register

 Voucher check

 Voucher system

VOUCHER

A business form used to show an authorized person as approval for a cash payment.

VOUCHER CHECK

A check with space for writing details about a cash payment

VOUCHER SYSTEM

A set of procedures for controlling cash payments by preparing and approving vouchers

10
before payments are made. As an industrial training student under GSIPDC I had learned

how to prepare voucher based on the schedule provided by the company. The voucher is

always made up of vouchers for company’s liability, Expenses, maintenance etc.

11
 GOMBE STATE INVESTMENT AND PROPERTY DEVELOPMENT

COMPANY LIMITED

(An undertaking of the Gombe state government)

PAYMENT VOUCHER

(MAIN CASH)

PAYEE PV NO. ……………… .

NAME&ADDRESS ……………………………… DATE: ……………… ..

Head of account A/C No. Dr Cr

Dr. Housing Loan F/120 ₦100,000.00
Cr Access G/120 ₦100,000.00 00
Particulars: Being made for housing loan for the month of August 2017 as per

scheduled.

Prepared By: kwairanga yunusa Checked By: Garba Hamisu

Sign……………………… Sign …………………………

PAYROLL:

This is a document that contain all the compensation that a business organization or

government use to pay it employees for a certain period of time including all the

deductions made on the incomes of the employees such as tax(PAYE), Union dues, loans,

etc. In the payroll method the rate is fixed per month or alternatively an amount is the most

popular method in government agencies at various levels.

Illustration:2

Basic salary ₦35,239 per year pay as you earn (PAYE) 2.5% on basic paid, union dues

₦900, loan ₦200,000 with 4% admin charges to be paid in 4years. Transport allowance

12
₦5245, meal allowance ₦4000 utility allowance 2500

PAY ROLL OF AN OFFICER G9/0

Taxable allowance Basic pay ₦35,239

Bonus
Gross pay ₦35239
Deductions PAYE ₦880.98

LOAN RECOVERY ₦4333.3

UNION DUES ₦900

NET PAY ₦29,124.78
Add Nontaxable allowance Transport allowance ₦3410

Meal subsidy allowance ₦3000

Unity allowance ₦1500

₦7910
Amount payable ₦30,803.5

FINANCIAL PLANNING

The process of evaluating the investing and financing options available to a firm, it

includes attempting to make optima decisions, projecting the consequences of these

decisions for the firm in the form of a financial plan, and then comparing future

performance against that plan.

FINANCIAL DECISION

Decisions concerning the liabilities and stockholders’ equity side of the firm balance sheet,

such as the decision to issue bonds.

DOCUMENTATION OF PAYMENT VOUCHER

This is the act of filling voucher into their various files for record, purposes and arranging

them in their respective files.

STORE

13
The store is a unit in the company that keep used and unused property of the company.

There are various steps to observe by the company (GSIPDC) irrespective of purchase and

sales of materials. Because the company is into buying and selling of materials they always

follow the following methods;

 FIFO

 LIFO

FIFO = First in first out is method of issueing out materials from the store. This means

that the first material that comes to the store will be the first to be issued to other units of

the company.

LIFO = Last in first out: materials that are received last in the store should be the material

to be issued first to other unit of the company see illustration below:

 Consider the following transaction of materials in GSIPDC 2017

Jan 3 250 units at ₦10 each

Jan 8 480 units at ₦12 each

Jan 13 610 units at ₦15 each

Jan 26 550 units at ₦16 each

Issues were made from the store as follows:

Jan 5 170

Jan 9 150

Jan 15 350

Jan 20 500

Jan 28 620

Require prepare store ledger account of the company using the FIFO and LIFO methods to

14
determine the closing stock as at 31st January 2017.

DATE QTY RATE AMOUNT QTY RATE ₦ AMOUNT QTY RATE ₦ AMOUNT
2017 ₦ ₦ ₦ ₦
JAN 3 250 ₦10 ₦2500 250 10 ₦2500
JAN 5 170 10 ₦1700 80 10 ₦800
JAN 8 480 ₦12 ₦5760 560 80@10 ₦6560
480@12
JAN 9 150 80@10 ₦1640 410 12 ₦4920
70@12
JAN 13 616 ₦15 ₦9150 1020 410@12 ₦14070
610@15
JAN 15 350 12 ₦4200 670 60@12 ₦9870
610@15
JAN 20 500 60@12 ₦7320 170 15 ₦2550
440@15
JAN 26 550 ₦16 ₦8800 720 17@15 ₦11350
550@16
JAN 28 620 170@16 ₦9750 100 16 ₦16000
45@15
CLOSSING STOCK AS 31ST JANUARY 2017 ₦ 54220
FIFO METHOD RECEIPT ISSUE BALANCE

PROBLEM(S) ENCOUNTERED

There were quite a number of challenges that am faced with. As today’s business

environment becomes increasingly competitive, companies are becoming more aggressive

and dynamic in identifying strategies that will ensure profitable existence.

These problems encounter may include the following

 Lack of sufficient working materials in the organisation

 Some items to be recorded in the payment voucher does not have an

accounting code assigned to them.

 Limitation with regard to the knowledge given to the IT students.

 During the documentation some payment vouchers do not have summation and

some summation do not have possessed payment voucher.

15
CONCLUSION

The report concludes that information for student industrial work experience scheme is the

most highly way in which students can acquire practical aspect of their field of study. It

further concludes that the most important aspect of practical is through the industrial

training where students gained a lot of knowledge in the course of their training. The

Industrial Training Fund (ITF) develops strategies that enable students to exploits their

potentials, innovation in creating sustainable information from the industries or companies

he or she attaché to

RECOMMENDATION

This report examined effects of industrial training in Gombe state investment and property

Development Company limited on the student’s performance and the company at large. I

therefore want to recommends that in order to improve on the expected performance of

students after training (IT) and the process of the scheme, I want to suggest the following

ideas to my fellow students who will soon be on IT.

 The management of GSIPDC should try to encourage workers and IT students’

incentives and contributions for this will go a long way in allowing staff and

students to put on their best to enhance the efficient of the company.

 The management of Gombe State Investment and Property Development Company

Limited (GSIPDC) should endeavor to see to workers and IT students’ welfare in

terms of incentive to motivate staff for best input and should consider replacing its

depreciated assets as this could go a long way to avoid service failure.

 The industrial training department in the university can acquaint themselves to

16
 various company and establishments so that students on industrial training will find

easy access to those establishments for their training instead of seeking for months

before finding a suitable organization for the industrial training.

 The Federal Government should provide industries, companies and Organization

that will accept student on industrial training. In addition to this,

17