CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In most countries of the world particularly, the developing ones, the decades following world war 11 (particularly, the 1960s and early 1970s) witnessed a massive intervention of the government in National Economics. One of the ways through which the government intervened in the economics of these countries was by establishing public enterprise state owned companies, Ezeani (2015) stated “that public enterprise was seen as veritable tools for achieving national socio-economic development” Thus since the 1960s, successive governments have used public intervention in the development process. This was eloquently stated in the Nigeria Second National Development plan (1970-74) thus “Their primary purpose is to stimulate and accelerate national economic development under conditions of capital security and structural defects in private business organizations. There are also basic considerations arising from the dangers of leaving vital sector of the national economy to the whims of the private sectors often under the direct and remote controls of foreign large scale industrial combines”.
Management is seen as an effective and efficiency utilization of human resources to achieve an organization goals and objectives. A manager is someone who can make use of resources efficiently. Nwoye (2011) opined “that there are many reasons for establishment of public enterprises which one of them is development emphasis; he further stated that in many developing countries, the resources available to the private sector are not adequate for the provision of certain goods and services. For example, the investment required in the construction of a hydroelectricity generation plant or a water scheme for large urban center is quite enormous and the returns on such investment will take a very long time to realize. Ozor (2014) started that “like many other British–ex-colonial territories, Nigeria realized soon after political independence that she still had to battle for her economic independence. Her weak economic base limited infrastructural facilities, paucity of social service providing inadequate local financial entrepreneurship etc.
Consequently, Adeyemo (2005) stated that “other factors that accelerated with the growth of Nigeria”s public sector was there indigenization policy of 1972 as enacted by the economy, the policy, further provided much needed legal basis for extensive government participation in the ownership and control of significant sectors of the economy”.
Ugorji (1995) also observed that “public enterprises have also been established for political reasons, many government undertakings are used to provide jobs for constitutes, political allies, and friends, public enterprises and the distribution of government employment were further been defended in the need to maintain “federal character” and promote national integration. The public enterprises especially in developing countries become active in likely sector such as manufacturing, construction, finance, service, utilities, transportation, agriculture etc.
Ezeani (2010) stated that “the colonial government established. Some public enterprises to provide essential services like electrically, railways, telecommunication and pipe borne water to mention but a few. Nigeria and most other Africa countries, regardless of Ideological dispositions, unavoidable and allocation, particularly within the utilities and social services sectors like (NTA Owerri). In both technical and economic perspectives, public enterprises are seen as an organization whose primary function is the production and sale of good and for services and in which government on other government controlled agencies have an ownership stake that is sufficient to ensure their control is exercised (understandable).
The public enterprises approach to resource mobilization and allocation for national socio-economic development is in consonance with the Keynesian approach to economic approach reflected the problem of market failures and the growing demand of citizenship rights such as a decent living standard, adequate education and health care, and minimal social equality, he further stated that whereas in developing countries this approaches became the pivotal policy option to ensure national development, wealth redistribution, employment generation, and economic self-reliance.
In most developing countries like Nigeria where ideology has not played any significant role in the shaping of their economic activities, the reason for the spread of public enterprises can be found mainly in the realm of political, social and economic considerations, but not Ideological. Thinking in the direction, S.A Sosna in Ozor (2014) asserted that “the emergence of a fairly extensive public sector is a major regularity in the development of the young states. Although, the scope and pace of the change differ from country to country, the public sector and related problems are central to their economic policies.
In fact public enterprises are established for various reasons which include not only such as, the provision of essentials services. Ozor (2014) stated that public enterprises are established to provide certain essential services and public wants which if left in the private hands these services will be beyond the reach of the average man in the society. Even when the exclusion principle can apply in the satisfaction of these services they are considered basic necessities of these services, they are considered basic necessities or merit goods. Government must therefore step into providing such services and subsidies to their consumption; otherwise the discretionary pricing policies of private monopolies will render their consumption too exorbitant for the average consumer/citizen. This is why government established social services like NTA, Owerri in order to achieve its education and information objective. This explains the existence of state governments.
Some public enterprises are established for the purpose of mineral exploration and exploitation the rationale is that the benefits, of such minerals should accrue to their owner that is the public, in the producing country. Public enterprises may also arise as a result of governments desire to create an integrated national economy and to stimulate balanced regional development throughout the country. The establishment of steel rolling mills at Oshogbo, Jos, Katsina and Ajaokuta are clear examples that public enterprises are set up by government in response to the complaints of the citizens regarding poor services, extortionate prices, uneven performance and discrimination in private service delivery by private concerns. For example, the establishment of state transports companies by various state governments as well as the incorporation of the national freight and cargo handing company was due to the high fare charged by private transportations. In order to effect a fair distribution of service and national resource and to achieve economic integration, various governments in the federation had to address and redress some of these complaints.
Another reason for the blossoming of public enterprises is strategic. In most countries, nationals security has constrained the government to assume direct responsibility for certain activities such as the production of arms and ammunition including transport and fighter vehicles, military air fields and defense installations for instance, investments in them are quite exorbitant and sometime prohibitive for another, the security of the nation may be at stake if private investors handle and thus become acquainted with information regarding vital defense equipment and strategic military locations and installation etc. This is the rationale for the establishment of the defense industries corporation (DIC) of Nigeria and the government of the United States of America”s intervention in providing some military establishment in America.
1.1.1 BRIEF HISTORY OF THE STUDY ORGANIZATION
Nigerian Television Authority Channel 12 Owerri Imo State date back to 30th August, 1977 when NTV Aba/Owerri separated from East central state broadcasting service (ECBS) as a result of the creation of Imo State Government, established the Imo Broadcasting service (IBS), which in addition to radio services took over the management of NTV Aba/Owerri Tv station.
The station operated from Aba (through the state capital was at Owerri), as there was no structure at Owerri. NTV Aba/ Owerri only maintained an area office in Owerri hence the name.
Thereafter the federal military government promulgated decrees no 24 of 1977 that established the Nigerian Television Authority, which subsumed all state, owned Television station in Nigeria.
On the 19th February 1979, land measuring 3.3 hecters was allocated for NTA, Owerri on 30th September 1981 an agreement was reached for the provision of a domsat base link network service from Aba via Aba/Owerri microwave link.
It should be recalled that Imo State was created in 1976; it took more than twenty seven years after creation of Imo State, for the dream to establish NTA in the state to come into reality.
Nigerian Television Authority channel 12 Owerri was commissioned on 1st April 2003. NTA channel 12 Owerri with 5kw digital transmitter and computerized studio equipment transmits clean clear signals, which are received in about six states outside Imo that is Abia, Uyo, Port Harcourt, Enugu, Anambra and Eboyi State.
Although after 10 years of commissioning, the power has reduced to 1.1kw, but effort is been made to revert it to its normal position.
1.2 STATEMENT OF THE PROBLEM
Public Enterprises are expected to have their hallmark and watch world as efficiency and effectiveness. This is predicated on the rationale behind their establishment by both the state and federal government, but unfortunately the reverse has been the case.
Most contemporary public enterprises are associated with inefficiency and ineffectiveness which have led to liquidation of some enterprises like the Nkalagu cement company.
? Ineffectiveness in the provision of goods and services such as failure to meet intended objectives, diversion of benefits to elite groups, etc.
? Rapid expansion of the bureaucracy. Severally straining the public budgets with huge deficits of public enterprises becoming massive drain on government results inefficiency in government etc.
? Poor financial performance of huge financial losses, overstaffing and burden of excessive debts.
1.3 OBJECTIVES OF THE STUDY
In a nutshell, the objectives of this study are categorized into two, the general and specific objectives.
The general objective of this study is to explain the management of public enterprise in Nigeria, especially NTA Owerri.
On the other hand, the specific objectives are stipulated as follows.
a. To access if public enterprises are associated with inefficiency and ineffectiveness.
b. To examine the reason for rapid expansion of bureaucracy that straining public budgets with huge deficits.
c. To ascertain why poor financial performance exists at public enterprises that led to huge financial losses.
1.4 RESEARCH QUESTION
2. What are the cause of public enterprises that led to inefficiency and ineffectiveness?
3. Does rapid expansion of bureaucracy strain public budgets with huge deficit?
4. Does poor financial performance exist at public enterprises?
1.5 HYPOTHESES
Having looked at the statement of the problems and the objectives of the study, the following hypotheses are formulated:
1. Public enterprises does not associated with inefficiency and ineffectiveness that led to liquidation.
2. Rapid expansion of bureaucracy does not strains public budget with huge financial deficit.
3. Huge financial losses does not exist at public enterprises and often lead to poor financial performance.
1.6 SIGNIFICANTS OF THE STUDY
Theoretically, this research shall be a relevant material and a contribution to scholarship, constituting a reference material on the studies of management of public enterprises in Nigeria and related subject matter for further research. It will also expose the management of public enterprises in Nigeria including NTA, Owerri to the modern styles of management and leadership as well as public sector performance such as total quality management, capacity building, decentralization ethics, accountability and information and communication technologies.
Empirically, at the end of this study, it is hoped that it will create awareness and assistance on the need to improve the management of public enterprises in Nigeria especially the management staffs of NTA, Owerri.
In addition to this, the study provides baseline data on the numerous management problems undermining operational efficiency of NTA, Owerri to the management of the enterprises particularly the policy makers as making such information available will help to forestall future of the organization.
1.5 SCOPE OF THE STUDY
This study is intended to examine the management of public enterprises in Nigeria with a particular emphasis on NTA, Owerri.
1.8 LIMITATION OF THE STUDY
During the course of this study, the researcher was confronted with numerous constraints that pose difficulties to proper understanding of the subject matter.
The first constraint relates to the dearth of adequate literature on management of public enterprises in Nigeria. It was rather difficult and in most cases impossible to get hold of certain documents and records that would have been vital to this study, most especially as it concerns endogenous problems that tend to displace the objective of the company from time to time.
Disclaimer : This Materials is for research purposes and should be used as academic research guideline only. We are not encouraging any form of plagiarism. Do not copy word for word