1.0 Introduction
1.1 Background of Study
In any developing economy, the government is the main initiator and promoter economic development, especially in Nigeria. In developing countries, government usually intervene in some areas of the economy in which the private sector cannot perform. According to Abubakar (1986) in order to facilitate what the federal government has instituted and made use of many public enterprises over the years.
It would be recalled however that in the fifties and sixties, agriculture was the main stay of the Nigerian economy. The early seventies earned for Nigeria a lot of revenue including revenue from all level that was never anticipated. This new dimension got government involved more with widely diversified investments in areas that span both the traditional public sector and exclusive private sector business.
As a result of this development include crude oil and agriculture that was the main stay of our economy was later given less attention. Owing to this circumstance, the government investments were sponsored mostly by the oil revenues. The oil boom era (1974-1979) has been described as the golden era for public investment. The government invested in over 30 parastatals and companies within this period.
Most of them have been unprofitable; some cannot even meet their operating costs and have depended on government subventions for their year to year survival. Public co-operations in Nigeria have been considered inefficient and unyielding, this is because they have viewed it with the profit criterion. Kindleberger (1986) however opines that this is not a fair judgment, economic activities, it is usually not appropriate to use the performance standard of the private sector they are, the objective of private business is profit, while the government enterprises is services to the society or promotion of general welfare.
Olisa (1985) said that prior to independent and after Nigeria was faced with the problem of attaining her social economic objectives, there was no well destined capitalist class that could operate the much needed development through their productive and industrializing activities. The civil service as that time was inappropriate for accelerated development and the country was saddened with the problem of running many businesses.
These parastatals are established outside the civil services and this allows for greater freedom of action, quicker decision making which will promote their efficiency and effectiveness. These corporations are managed through government appointed officials who could utilize the profits accruing from their operations in catering for the public interest. Onwudunmo(1970), Ugwu(1990) opined that in Nigeria, it is very unfortunate that government have rapid development and this is because the management of these enterprises have constituted the bane of these enterprises.
Most of them failed to meet peoples' expectations in terms of provision of goods and services and development in general. The commercially oriented ones neither make profit nor even sustain themselves. All efforts by successive government yield no positive result despite various commissions of review parties.
The performance of these enterprises still fall shorts of peoples' expectations. It is based on this that the researcher finds the needs to investigate these problems in power holding company of Nigeria (PHCN).
1.2 Statement of the Problem
It is important to note that public enterprises in any given economy has important role to play in the rapid socio-economic development of the country.
Government owned enterprises and businesses in Nigeria are established to accelerate the pace of economic development in which government is the major investor. Due to the important roles associated with the major public enterprises in Nigeria, there is need for good management for its efficiency. It is a fact that government spends large sums of money in setting up these enterprises and thus looks forward for making profit.
As a result of inefficiency in running these enterprises, federal government and state government have in the recent past set up committee which studied the public corporations and parastatals and recommended privatization and commercialization of some of these enterprises. These enterprises perform so poorly than privately owned business.
Since public enterprises are important in growth of any economy, there is the need to investigate the problems of public enterprises in Nigeria. Also, there is need to identify the reasons for criticism leveled against them. Despite the enormous investment in public enterprises, Nigeria is obviously not getting good value for the money being spent or invested on these public enterprises. This gives the decision to this research on “Management problems of public enterprises in Nigeria” using PHCN as a case study.
1.3 Objectives of the Study
This study is aimed at the management problems of public enterprises in Nnewi District of Anambra state with a view of identifying these problems and therefore coming up with solutions to them as related to the aforementioned corporation.
This study aims to:
- Identifying some of management problems facing the public enterprises in Nnewi District of Anambra state.
- Examining the influence/ impact of the problems on the corporations in particular and state as a whole.
- Identify the level of government interference on their performance.
- To determine appropriate measures to checkmate the problems.
1.4 Research Questions
- How can management proficiency be determined in public enterprises in Nnewi District of Anambra state PHCN?
- What are the influences or impact of the problems on the corporations?
- What is the level of government interference on the corporations' performance?
- What are those things that will be into consideration in order to checkmate the problems of the corporation?
1.5 Significance of Study
In third world countries, public enterprises are noted for their inefficiency and waste of resources. To save the situation, an inquiry is needed in its sector of our economy especially at this time of economic difficulties facing the country.
The country cannot afford to encourage or entertain any kind of economic waste in our public enterprises since if efficiency is maximized, it will definitely have a positive effect on the improve standard of living of the general public. This is the significance of this study. It is noted that the study of the management problems in the public enterprises in Nnewi District (PHCN) will help management sort some managerial problems so that both workers and organizations will benefit, and public enterprises will achieve more in future.
1.6 Scope of the Study
This study seeks to cover various management problems identified in the government owned establishment but because of the limitation of time it will only cover the problems that will hinder the profitability of the power holding company of Nigeria.
1.7 Limitation of the Study
This is the problems that are facing various management using power Holding Company of Nigeria.
- Their limitation in terms of time and financial logistics.
- Lack of encouragement from staff of the organization being studied and
- Administrative bottleneck that act as impediments to smooth in carrying out of this work.
1.9 Definition of Terms
Management:
It is a process or form of work that involves the guidance or direction of a group of people towards organizational goals or objectives.
Warehouse:
A warehouse is a commercial building for storage of goods.
Marketing:
It is the process by which term applied to the craft or making the producers or a producer of service with customers, both existing and potential.
Sales:
Sales is the activity of selling forms an integral part of commercial activity mastering sales considered by some sort of persuading art on the contrary.
Public Enterprises:
It is an organization set up as a corporate body and as part of governmental apparatus for an entrepreneurial-like objective.
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