The Management Problem Of Public Enterprises In Nigeria (A Case Study Of PHCN In Owerri District)

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Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


I humbly wish to dedicate this project to our heavenly and Almighty God, Jehovah, to my cherishable parents, Mr. & Mrs Isaiah Duru .


It is my greatest respect to acknowledge the relentless effort of my all my lecturers in the department of public Administration, Federal Polytechnic Nekede Owerri, Including my dearest supervisor and also my Icon lecturer Mrs N.V Ugorji , Obinna Onwubiko and Charles Nkemjika for taking it upon themselves to bless me with true wisdom and knowledge which they inculcated in my life.

Secondly, I did not in any point in time forget to acknowledge my most costly and valuable parents Mr. & Mrs.Isiah Duru who took it as his priority to brush and educate me to any level.

Thus, I have not forgotten to acknowledge all my friends in Public Administration such as Nwosu Celon ,Ikpo
I love you all.


This research study tries to investigate the management problems of public enterprises, a case study of power holding company of Nigeria (PHCN).

One of the major objectives of any government is a stable growth and development of the country through industrialization. One of the avenues through which this is achieved is by the establishment of public enterprises.

PHCN, being public enterprises, the research has undertaken to investigate how much it has contributed to the general growth and development of Nigeria and also investigate any managerial problem.

Chapter two talk about the review of the literature on the topic.

Chapter three is about the research methodology, chapter four talks about analysis and interpretation of data.

Chapter five contains conclusions. Followed by recommendations which the researcher believe that research work will be of great benefit to the management of PHCN and other public enterprises that may have similar problems

Table Of Content

  • Title Page
  • Approval Page ii
  • Dedication iii
  • Acknowledgement iv
  • Abstract v
  • Table Of Content vi

Chapter One

  • 1.0 Introduction 1
  • 1.1 Background of the Study 1
  • 1.2 Statement of the problem 4
  • 1.3 Hypothesis Formulation 6
  • 1.4 Objective of the Study 6
  • 1.5 Significance of Study 7
  • 1.6 Scope of the Study 8
  • 1.7 Limitation of Study 9
  • 1.8 Research Questions 9
  • 1.9 Definition of Terms 10

Chapter Two

  • 2.0 Literature Review 13
  • 2.1 Introduction 13
  • 2.2 The Concept and Purpose of Public Enterprises 13
  • 2.3 History and Growth of Public Enterprises 19
  • 2.4 Structure of the Public Enterprise 22
  • 2.5 The Problems of Public Enterprises 28
  • 2.6 Economic Factors 29
  • 2.7 Financial Problem/ Mismanagement 32
  • 2.8 Political Factors 34
  • 2.9 Ethnicity Problem 36
  • 2.10 Nigeria Work Attitudes 38
  • 2.11 Administration Factors 39
  • 2.12 Operational Technical Factors 41

Chapter Three

  • 3.0 Research Design And Methodology 45
  • 3.1 Introduction 45
  • 3.2 Sources of Data 46
  • 3.3 Research Instrument 47
  • 3.4 Population Techniques 47
  • 3.5 Sampling Techniques 47
  • 3.6 Methods of Investigation 49
  • 3.7 Reliability of the Instrument 50
  • 3.8 Validity of the Instrument 50
  • 3.9 Method of Analysis 51

Chapter Four

  • 4.0 Presentation and Analysis of Data 52
  • 4.1 Introduction 52
  • 4.2 Data Presentation and Analysis 52

Chapter Five

  • 5.0 Summary Of Findings, Conclusion And Recommendations 63
  • 5.1 Introduction 63
  • 5.2 Summary of Findings 63
  • 5.3 Conclusion 66
  • 5.4 Recommendations 67
  • Bibliography 70
  • Appendix
  • Questionnaire

Chapter One

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 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 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, 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 out side 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 (onwudunm:1970). (Ugwu:1990) said 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 people’s 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 inquiring and review parties.

The performance of these enterprises still fall shorts of peoples expectations. It is based on this hat 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 business 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 this look forward to 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, is Nigeria 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 Enugu state” using PHCN as a case study.

1.3 Hypothesis Formulation

  1. Hi: There is a relationship between efficient management of public enterprises and high productivity in Nigeria.
    Ho: There is no relationship between efficient management of public enterprises and high productivity in Nigeria..
  2. Hi: Poor managerial skill affects pubic enterprises in Nigeria
    Ho: Poor managerial skill does not affect pubic enterprises in Nigeria.

1.4 Objective Of The Study

This study is aimed at the management problems of public enterprises in Enugu state with a view to identifying these problems and therefore coming up with solutions to them as related to the aforementioned corporation.
This study aims to:

  1. Identifying some of management problems facing the public enterprises like inadequate finance, poor managerial skills, inadequate infrastructural facilities etc.
  2. Examining the influence of the problems on the corporations in particular and state as a whole.
  3. Identify if there is any impact of government interference on their performance.
  4. Giving recommendation based on the findings of the study and suggesting suitable ways and strategies of improving the managerial efficiency.

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 his 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 roped that the study of the management problems in the public enterprises in Enugu state (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. Anambra motors manufacturing company. The scope of this study covers whatever problems that will hinder the profitability of this company, sustainability and continued growth. They have so many opportunities to study and require series of contacts in their company. Also they have useful data for kind of study that agencies needed in their work for economy.

1.7 Limitation Of The Study

This is the process, that various management facing in Anambra motors manufacturing company. Their limitation in terms of lime and financial logistics, also lack of encouragement from staff of the organization being studies and administrative bottleneck act as impediments to smooth carry out of this work.

1.8 Research Questions

  1. How can management proficiency be determined in public enterprise?
  2. Can the government tackle the problem of the management of public enterprise in Nigeria
  3. In what ways could the solution of these problems helps PHCN to improve in their management functions
  4. What impacts could it create in the transformation of PHCN productions

1.9 Definition Of Terms

Ware House:

A warehouse is a commercial building for storage of goods. Warehouse are used by many factors, importers and exporters, wholesales, transport business, customs etc. they are usually large plan building in industrial parts of town. They come equipped with coaling docks to load and unload trucks or sometimes are loaded directly from railways, airports or seaports. They also often have cranes and fore lifts for morning goods.


Is the process by which term applied to the craft or making the producers or a producer or service with customers, both existing and potential. It provides any direction to someone hoping with that, a more modern explanation of what marketing is and what makes it effective. Marketing is a four stop process that begins with analyzing and defining a qualified universe of potential users of buyers.

Consumer markets:

The consumer deals with the last final customer who buys the product or their aim satisfaction / personal use or student consumer, you could possibly be a member of the markets of the market for “brand name” dothing and shoes, collage book backpacks, newspapers and bicycles. The consumer market covers a wide variety of people of different ages, tender race and etc. as long as they also the end user of product.

Enterprise Management Service:

This provide complete life cycle and configuration management of enterprises assess through an integrated toll suite, we provide “cradle to grave” services utilizing a suite of product for standardized, repeatable processes for procurement. The enterprise management service data base provides the enterprise management service data base provides the resources for continually assessing and improving customer service.


Sales or the activity of selling forms an integral part of commercial activity mastering sales considered by many as some sort of persuading “art on the contrary, the methodological approach of selling, refers to its as a systematic process of repetitive and measurable milestones, by which a sales persons rotate his offering enabling the buyer to visualized how to achieve his goals in an economic ways. Selling is a practical implementation of marketing. It often forms a separation or separate grouping in a corporate structure, employing a separate specialist operatives known as sale men.

I bet you, the complete material is fully loaded. This is just an excerpt. The Material is in MS-Word Format which you can easily edit and is comprehensive for a complete research work for this topic

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How to nail it on the head during your project defence

You are through with writing that project. Now what?

You have found yourself at that point where you have to defend what you have written. Of course you have to stand in front of your supervisor and other literary personalities to prove that you know what you wrote in your project paper. Unfortunately, the more you think about it, the more it looks like you are about to face a legion. It is not a war. But the emotion of dread welling up inside of you makes it look like one. So now you are asking yourself questions.

  • How am I going to start?
  • I hope I will do well enough to get an A.

You really want to nail it, but you need to come to terms with exactly how to get everything in perfect control. Especially your emotions of fear that seem to make a wreck of you every time you think about public speaking.
So here is the deal. I want to help you avoid that feeling that would ruin your precious moment if you dare to let it. And we are going to do it together.

I am going to highlight some very important tips to help you get in control for you to be comfortable enough to move from that feeling of DREAD to CONFIDENT; and making an awesome Impression for that great rating your supervisors should be giving to you so freely.

Consider these tips as you prepare for your defence. We will be taking them one after the other so here we go.

Watch Your Body Language And Keep It Confident:

Can you tell that a person is falling apart if they look confident? … If I can second guess you rightly, am sure you answered no to that question. Remind yourself that you need to come out that way. Now this might seem like a huge big deal when you are dealing with the foreboding. Maintaining a poise of confidence is very important. So find your most comfortable position, sitting or standing and draw up your body. You must exude confidence. It is something you need to do for yourself. People can only see what you allow your body language to show. So you must endeavour to put that out. Remember the story of David and Goliath? … At the end of your defence day, you want to be David.

Dress In Your Most Comfortable And Impressive:

Am sure this one is a no brainer. However I must highlight that you choose comfortable pieces. You don’t want to look so good and yet look like you were forced to wear something that does not belong to you. It’s great to ensure that as impressive as your clothes are on you, that they are also very comfortable.

Speak With Authority:

Going hand to hand with that aura of confidence is your most powerful asset:your words. If you look that confident, your words must not come out like whimpers. To be able to pull this off, you definitely need to speak as deliberately as possible in expressing yourself. Let them also hear what they see.

Use, Your Gestures:

I have often found this to come to my rescue in dealing with shyness and conveying my confidence. Usually it gives you an edge to also drive home your point. You must, however, ensure that you do not over use it. It doesn’t mean that your hands should be flying all over the place. That would be absolutely unnecessary. If you do this well, after a while you will realize that you are not as self-conscious as you used to be at the very start. For most situations, it would have completely disappeared altogether; leaving a really confident you talking.

Have A Good Opening And Closing Line:

Make sure you have perfected a good opening line. You should also be armed with a good closing line too. Try and rehearse it to a friend. If for the first time you presented it, your friend does not say “wow, that’s beautiful” or something like that; just know you need to keep refining it until you get the perfect line. Both opening and closing lines will go a long way in how impressed your panel gets to rate you high.

Make Sure You Know Your Work:

Certainly you should understand how important it is to know your own work from start to finish. Not having in-depth knowledge of your own work is tantamount to a suicide mission. Why should you kill yourself?
When all is said and done, this is what you came to defend in the first place. You should know your work from A to Z.

Prepare For The Questions:

Now this part is truly essential. You must be sure you do not floor all the good work you did on your presentation by not answering correctly. You must pay attention to the questions you are asked to be sure you will give the right answer. Many people get it wrong at this stage and spoil their good presentation. When you do not understand any question do endeavour to ask the person to expatiate what they mean before you answer.

These tips are by no means exhaustive, but applying these tips will give you some necessary advantage you need for a great outcome. Of course that outcome would mean that you eventually earn all your points on this project.



Samuel Obiora Blessed is the CEO and founder of a.k.a Nigeria Students Media, the youngest engineering graduate of Federal Polytechnic Nekede in 2017 and the engine brain behind this great platform. He is the man behind the scene, filled with many potentials. A musician as well as a developer with the interest of Nigeria students at heart. If you need a professional website, contact him via WhatsApp or phone call @ 08143831497 to get the best.

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