Management Problems Of Public Enterprise In Nigeria (A Case Of PHCN In Owerri District)

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


I humbly wish to dedicate the project to our heavenly and Almighty God, Jehovah, to my cherish able mum Mrs. Abigail Nwanyanwu.


It is my respect to acknowledge the relentless effort of all my lectures to the department of public administration, federal polytechnic Nekede Owerri, including my dearest. Supervisor Mrs. Amadi C.J for talking it upon her selves to bless me all 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 Mum, sister and brothers, Mr. & Mrs. Abigail Nwanyanwu who took it as his priority to brush and educate me to any level.

Thus, I have not forgetten to acknowledge all my friends in public Administration such as Ogidi, Wisdom, Ezeugo, I love you all.


This research study tire 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 establishement 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 without the research methodology. Chapter four talks about analysis and interpretation of data chapter five contains conclusion.

Followed by recommendation which the research believe that research work will be of great benefit to the management of PHCN and other public enterprise that may have similar problems.

Table Of Contents

  • Title Page
  • Certification Page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

  • 1.0 Introduction
  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objectivity of the study
  • 1.4 Research questions
  • 1.5 Significance of the study
  • 1.6 Limitation of study
  • 1.7 Definition of terms

Chapter Two

  • 2.0 Literature Review
  • 2.1 Introduction
  • 2.2 The concept and purpose of public enterprise
  • 2.3 History and growth of public enterprise
  • 2.4 Structure of the public enterprise
  • 2.5 The problem of public enterprise
  • 2.6 Economic factors
  • 2.7 Financial problem/ mis management
  • 2.8 Political factors
  • 2.9 Ethnicity problem
  • 2.10 Nigeria work attitudes
  • 2.11 Administration factors
  • 2.12 Operational technical factors

Chapter Three

  • 3.0 Research design and methodology
  • 3.1 Introduction
  • 3.2 Research design
  • 3.3` Sources / methods of data collection
  • 3.4 Population and sample size
  • 3.5 Sample techniques
  • 3.6 Validity and reliability of measuring instrument
  • 3.7 Method of data analysis

Chapter Four

  • 4.0 Presentation and analysis of data
  • 4.1 Introduction
  • 4.2 Presentation of data
  • 4.3 Analysis of data
  • 4.4 Interpretation of result

Chapter Five

  • 5.0 Summary, conclusion and recommendation
  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • Appendix

Chapter One

1.0 Introduction

1.1 Background Of Study

In any developing economy the government is the main intiator and promoter economic development especially in Nigeria. In developing countries government usually in which the private sector cannot perform, according to Abubaker (1986) in order to facilitate the federal government has instituted and made use of much public enterprise 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 investment 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 investment were sponsored mostly by the oil revenue. 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 subvention for their years to years survival. Public corporations in Nigeria have been considered ineffective it who the profit criterion. Kindleberger (1986) however Hinks that this not a fair judgement economic activities, it is usually not appropriate to use the performance standard of the private sector they are the objective of private business is service to the society or promotion of general welfare Olisa (1985) said that prior to independent and after Nigeria was failed objectives there was no well destined capitalist class that could operate the mach need development through their productive and industrializing activities. The civil service as that time was in appropriate for accelerated development and the country was saddened with the problem of running many businesses.

These parastatal are established out side the civil services and this allows for greater freedom of action quicker decision making which will promote them efficiency and effectiveness. These corporations are managed through government appointed officials who could utilize the profits accruing from their operation in catering for the public interest (onwndum 1970). (Ugwu 199) said that in Nigeria, it is very unfortunate that government have rapid development and this is because the management of these enterprise have constituted the bane of these enterprises. Most of them failed to meet people’s expectation 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 enterprise still fall shorts of people expectation. 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 enterprise 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 enterprise in Nigeria. There is need for good management for if efficiency.

It is a fcat that government spends larger sums of money in setting up these enterprise and this look forward to making profit. As a result of inefficiency in running these enterprise, federal government and state government have in the recent past set up committee which studied the public corporation and parastatals and recommended privatization and commercialization of some of these enterprise. These enterprise perform so poorly than privately owned business.

Since public enterprise are important in growth of any economy, there is the need to investigate the problems of public enterprise in Nigeria? Also there is need to identify the reason for criticism leveled against them. Despite the enormous investment in public enterprise, 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 problem of public enterprises in Enugu state using PHCN as a case study.

1.3 Objective Of The Study

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

  1. Identifying some of management problem falling the pubic enterprises like in adequate infrastructural facilitites etc.
  2. Examining the influence of the problems on the corporation 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.

1.4 Research Questions

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

1.5 Significance Of Study

In third world countries public enterprises are noted for their inefficiency and waste of resources. To same the situation, an inquiry is needed in his sector of our economy especially at this time of economic difficulties falling the country.

The country cannot afford to encourage or entertain any kind of economic waste in our public enterprise 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 hoped that the study of the management problem in the public enterprises in Owerri (PHCN) will help management sort some managerial problems so that both workers and organization will benefit, and public enterprises will achieve more in future.

1.6 Limitation Of The Study

This is the process that various management felling in Owerri PHCN their limitation in terms of line and financial logistics, also lack of encouragement both leneck out as impediment to smooth carry out of the work.

1.7 Definition Of Terms

Ware House:

A warehouse is a commercial building for storage of goods warehouse, are used by many factors, customs, importers and exporters, whole sales, transport business etc. they are usually large plan building in industrial part of town they come equipped who coaling dolks to loud and an load tracks or sometimes our 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 musing the producer or service who customers both existing and potential it provides any direction to some are hoping with that a more modern explanation of what marketing is and what makes it effective. Marketing is four step process that begins with analyzing and defining a qualified universe of potential users of buyers.

Consumer Market:

The consumer deals with the las final customer who buys the product or their aim satisfaction for personal use or student consumer, you could possibly be a member of the markets of the market brand name clothing and shoes, collage book, backpacks newspaper and bicycles. The consumer market collers 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 service utilizing a suite of product for standardized repeatable processes for procurement. The enterprise management service data base provides the enterprise resources for continually assessing and improving customer service.


Sales or the activity of selling from an integral part of commercial activity mastering sales considered by many as some sort of persuading are on the contrary, the methodological approach of selling refers to it as a systematic process of repetitive and measurable milestones by which a sale person rotate his offering enabling the buyer to visualized how to achieve his als in an economic ways selling is a practical implementation of marketing it after forms a separation or separate specialist operative known as sale men.

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