MANAGEMENT PROBLEMS OF PUBLIC ENTERPRISES

​​​​​​BACKGROUND OF STUDY: In any developing economy, the government is the main initiator and promoter economic development, especially in Nigeria.  In developing countries, governments usually intervene some areas of the economic in which the private sector cannot perform, according to Abubalar (1986) in order to facilitate 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 Nigeria economy.  The early seventies earned for Nigeria loge enude oil revenue at a level that never was anticipated.  This new dimension got government involved more with videly diversified investments in areas that span both the traditional public sector and exclusive private sector business.  

As a result of this development in chide oil, 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 wistful.  This is because they have viewed it with the profit criterion.  Kindleberger (1986) however Hinks 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 hoses is different colours, the objective of private business is profit, while the government enterprises is seines 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 services at that time was inappropriate for accelerated development and the country was saddened with the problem of running many business.