Chapter One
Introduction
Chapter Two
Literature Review 15
Chapter Three
Research Methodology
Chapter Four
Data Presentation and Analysis
Chapter Five
Discussion of Findings, Recommendation, Suggestions for Further Studies, Summary and Conclusion.
Bibliography 73
Appendix 77
1.1PREAMBLE
The government of any nation has some basic responsibilities to her citizenry. One of such responsibilities is the provision of social infrastructure and cheap economic services to the people. In other words, the government provides essential service to the public in her effort to ensure eve and diversified development. The services are known to be indispensable to the people and most the time they are services of great necessities such that if left in the hands of the private investors will result to over explanation, marginalization and in extreme cases an undue monopoly.
However, as an organized body responsible for policy making and execution, the government delegates the responsibility of providing such public services to an established body which in the right sense could be referred to as the public enterprises ranging from the type of role assigned to them to the type of act or decree under which it is established.
So to say, whether it is intended that such enterprise would source funds on its own or make profit solely depends on the section of the decree/constitution that establish it.
Generally, they are called public enterprise because they provide and render public services. These services are public because of the concept of externalities in that some consumers of these services pay while others who may be consuming it do not pay. Sometimes the payment is not proportionate to the services consumed. Despite the fact that some people who consume public services do not pay for it, the government however, cannot withdraw such services from them.
The belief is that whether the service is paid for or not that the general public have paid for them through tax.
According to Abubakar (1984) the establishment has objectives, which include the provision of infrastructural facilities and services at a very moderate price/rate to the vast Nigerian population. This was the main reason why they were included as part of the development plan of 1972. They were seen as machinery for development, national growth and the tool for high standard of living and increased per capital income. The initial funding of public enterprises is by the government but it was expected that as time goes on the parastatals would source fund and capitalize itself through car ways from the proceeds f the changes it tags to the services rendered to the public.
Rotimo (1985) disclosed that they are not in practice being made to continually extend loan and subsidiary to some of them. Once more the government in addition to providing the initial fund give loan and subsidy to the parastatals at the repayment period of 5 years.
The Nigerian populace and members of the board of policy makers had been disappointed for the overall performance of the public parastatals, which is far below expectation. There are so many reasons why it is expected that public enterprises though not profit oriented should perform better. One of such reasons stems from the fact that it is funded by the whole Nigerians through tax.
Another such reason is that available support are resources she enjoys from the government such support could be in for of subsidy provided by the government, loan extended to them at a low interest rate, exemption from tax levies and the monopolistic condition of their services. Irrespective of these logistic available to the public enterprises they has suffered and in fact been pooled down by a lot of unimaginable crises.
The management position of the public enterprises is organisingly not encouraging. The state of their overall productivity is in a total shamble. Their efficiency and effectiveness reads zero. The question now is whether the manager are actually competent or aware of the their management objective what is actually wrong?
Sometimes in the past, the government inaugurated series of public commissions to study the parastatas and make recommendations for their improved productivity. Lidorji and Onasode Commissions were some of such Commissions inaugurated to investigate into the management position of the public enterprises. Inspite of their numerous research and suggestions none of such reports had proved any significant development in the public sector which can imply that there is no change in the public enterprises.
The situation of poor productivity, inefficient services and gross negligent fr
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