Problems And Prospects Of Management Of Medium-Scale Industries

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


This research work has investigated the “Problems and prospects” of management of medium –scale industrial in Emene Industrial Layout East. (a case study of Pee-pat oil Nigeria Limited)

The major objectives of this project for research was to find out those problems that affect the management of medium –scale industrial in Emene East with particular reference to pee pat oil Nigeria Ltd. And again, to see the prospects of managing those industries in the Area.

To accomplish the above objective therefore, the work had to be divided to five chapters. The first chapter introduces the theme. It points out the background of this subject. Again, tries to see the significant of the study and scope. While chapter two reviews the existing related literature and the definitions. The definition were made by various bodies and individuals.

Again, the chapter three constitutes the main body of the project there, it high lighted on the methodology which comprises, area of study, population of study sample technique, instrument for data collective, validity and reliability of the instrument. And in chapter four, it deals on data presentation and analysis and how the respondents answered their questions as shown in the tables and pie charts.

Finally, chapter five summaries all the write-up by way of finding recommendation, limitation of the study, suggestion or further study and conclusions, lastly, is the bibliography as it concerns the project.

Chapter One


1.1 General Background Of Study:

That almost all business organisation in Emene Industrial layout Emene east L G A are operating in a medium – scale when compared with their counter parts in other local Government Areas has become a matter of concern in this Area in particular and Enugu State in general.

This research work seeks to address the problems and prospects of Management of medium-scale industry with reference to “PEE PAT OIL NIGERIA LIMITED” Emene Industrial layout Enugu East is L.G.A Emene a L.G.A
The management of a new medium –scale industry or buying an existing one is not a simple task. It involves such complex operations, huge financial out lays and psychological imprisonment that it needs prospers planning.
Planning is the most vital ingredient in the success of any business operation. The success of any industry depends largely on the potentially of the entrepreneur to formulate his business objectives, analyse his ability in terms of strength and weakness locate sources of finance and good management and establish systems of control and accountability.

There has been no generally acceptable definition of medium-scale industries among researchers and practitioners. There is as many school of though on the said subject matter. However, the Nigeria Bank for Commerce and Industry defines medium-scale industry as firms or companies with assets (including working capital but excluding land) not exceeding N750,000.00 of paid up to 50 employer. Again the central Bank of Nigeria in its monetary policy circular N0 2 (1980) defined medium-scale industry as an industrial whose annual turnover ranges between N25,000 to N500,000.

The owner is usually directly involve in the management as well as the operations of the business and may not have much training or experience in accounting procedures, taxation, finance business management and business system procedure and practices.

One or more persons can own or establish a medium scale industry.

Consequently, the growing industries are regarded in this part of the world as the never –d0o- wells especially Nigeria. When an economy is shaky, growing industries in that economy tend to suffer most and usually do not stand the test of time.

Hence an increase in the number of casualities in this regard.

Despite the high level of technological advancement in the Western World, many third world countries have fpr log maintained a mono-cultural. Nigeria is one of such countries with crude oil accounting for about 81% (1978 – 82) of the total annual expected income. Petroleum therefore offered employment opportunities to many Nigerians in addition to its linkage effect on other industries in form of input supply.

In order to minimize the over dependence on oil, the federal government in 1985 introduced the structural adjustment programme (SAP). Government economic policies in this period have encouraged both young men and women to use their knowledge and skills for business ventures. It is believed that no other time in the indus history of this country had young people even those with the little knowledge of business studies risked private enterprise. Now that the country has decided to privatize and commercialized most her industries and organisation, there is no gain saying the fact, that the future of this country lies with the private sector.

According to Okafor (1992: 16) out of N71.4 billion projected for capital investment in the federal government second rolling plan (1991 – 1993) N59.4 billion would go to he private sector.

As at March, 1992 the total Loan and advances out standing to medium scale industries wholly owned by Nigerian amounted for N 34 billion (Ade Faye 1992 –8)

It is really a thing of joy that in Nigeria today, medium scale industries are spreading almost every Local Government Areas in the country. Ironically, there is a complete death of these medium scale industries in Enugu State particularly at Emene which there for prompted the researcher into finding what might be the cause (s) of lack of industries in the area.

1.2 Statement Of Problems:

Industrialization is the basic tool for both rural and Urban development. Among other Areas in Emene, Emene Industrial Layout Enugu East, L. G. A is also faced with a towards industrialization.

  1. Lack of managerial ability and personnel lapses hasten the collapsing of medium-scale industries
  2. Inadequate funding retards the growth of medium-scale industries.
  3. Lack of equipment like petroleum sales pump, generator lister plants and fire extinguishers cause the liquidation of small-scale industries
  4. Inadequate supply of products like engine oil, gear oil, kerosene, Diesel. Petrol and other petroleum bye-product result to winding up of medium scale industries.
  5. Inability to maintain and service already procured equipment also pose a threat to medium-scale industries.
  6. None availability of petroleum tanker truck to carry the products from its lifting depots to the service station.
  7. Adulteration of petroleum products by some unscrupulous tanker drivers.
  8. Inadequate checking procedures by station managers.
  9. High cost of freight for living petroleum tanker truck
  10. Poor working condition for employees of the medium-scale industries.

1.3 Research Questions

  1. What are the collateral securities required to obtain loan for the funding of PEE PAT Oil industry ?
  2. To what extent has lack of managerial skill and personnel lapse hinder the developing of PEE PAT Oil industry ?
  3. To what extent has the availability or lack of raw material / equipment influenced the development of the industry in the location ?
  4. How far has the inability to maintain and service procured equipment posed a threat to the industry ?
  5. At what extent has the none availability of petroleum tanker trucks and other maintenance vehicles affected the growth of PEE PAT OIL Industry ?
  6. What are the impacts of adulterated and fake products to the industry ?
  7. To what extent has the improper and inadequate checking procedures contributed to the prosperity of the industry ?
  8. To what extent has finance and other logistics affected the quantity or capacity of products ordered and procured.
  9. What is the business climate in the local Government ?
  10. To what extent has the poor working conditions for worked affected the growth of PEE PAT OIL Industry ?

1.4 Objective Of Study

The main objective of this project is to provide a system which could be used by medium-scale industrialist to enhance the Management of their industrial. It is therefore aimed at provided a good working system that could be raised to achieved the following objectives

  1. To create awareness for entrepreneurs of medium-scale industrial on the available source of funds.
  2. To assist industrialists in improving managerial efficiency in order to achieve the organisation goal.
  3. To advise entrepreneurs on the need for procurement of standard raw materials / equipment that will enhance development of their industries.
  4. The need to maintain and service procured equipment by the experts as and when due.
  5. To high light on the need for easier evacuation and procurement of products and raw materials.
  6. To create awareness for industrialists on the impacts and causes of adulteration and fake products of raw materials.
  7. To educate entrepreneurs on the need for proper checking procedures by their workers.
  8. To create awareness for industrialists to plan before execution.
  9. To highlight on the need to have steady or constant production and good services to the customers.
  10. To remind entrepreneurs of there need to borrow only the amount of money they can repay to avoid bankruptcy and infant mortality of industries.
  11. To advice industrialists that good working conditions for their workers like fat salary, medical care, transport and housing allowances, promotion and prompt payments of these conditions among others will motivate and boost their working strength.

1.5 Significance Of The Study

The significance of this research is that the result will help identify the most effective and efficient way of managing and industry. On this note, awareness if being created on how fund could be raised to finance medium-scale industries and also encourage construction of fuel stations in and around Emene to alleviate peoples suffering in getting these petroleum products.

  1. Prime Motor Spirit (PMS) –Petrol
  2. Auto Gas Oil (AGO) – Diesel
  3. Dual Purpose Kero (DPK)- Kerosine
  4. Lubricants – Engine Oil, Gear Oil, Grease and Break Fluid.

In view of this, centres for manpower planning and development will utilize the research for economic and Co-operative analysis for the benefit of the industrialists and the country as a whole. Again the consumers needs and services will be provided and at this time some other large firm will require some of the products for their survival.
Finally, Emene which has about industries will have a course to have more after this research and improve more on the general well being of the people and the state at large.

1.6 Scope Of Study /Delimitation Of Study

The research is concerned with the problems and prospects of management of medium-scale industries with particular reference to PEE PAT Oil Nigeria Limited Emene L G A Enugu state. It point out the sourcing of the construction equipment like under ground storage tanks, fuel sales and pump, generator lister plant, fire extinguishers, surface tanks etc good site, the constrain and possible sources of fund for working capital as well as product management of funds.

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