This works is a comprehensive assessment of the effects of
government controls on commercialized companies in Nigeria. For an indept
study, a case study which represents an aspect of a large experience is used,
hence Nigeria postal service commission Ltd (NIPOST) Enugu was selected as the
The methodology employed involved the use of two assets of
questionnaires, administered on the customers and the employees of the company
in addition, some management staff were interviewed. All findings were
critically analysed and presented. Chi-square and the percentages were the main
statistical tools used in analyzing data and in testing the hypothesis.
It was discovered that because of the government controls these
organizations lack adequate and functional autonomy to carry out their
commercial operations. Yet, these government owned enterprises financed their
commercial activities. Besides, government has licensed private sectors to
compete with these commercialized state ventures.
It is thus recommended that the commercialized government
enterprises should be given the required independence to carryout their
commercial activities, against when they are continued being monitored by the
1.1 Background of the study
1.2 Statement of
1.3 Purpose of the study
1.4 Scope of the study
1.6 Limitation of the
1.7 Significance of the study
review related to the topic
2.2 Appointment of board and
2.3 The importance and effects
absence of functional autonomy in a
2.6 Summary of the literature
3.0 Research methodology
3.1 Research design
3.2 Area of
3.3 Sample techniques and procedures
3.4 Instruments used for data
3.5 Validity and
3.6 Reliability of the instrument
3.7 Methods of data
4.0 Data presentation,
analysis and findings
4.2 Data presentation / analysis
4.3 Interpretation of the result
Summary recommendation and conclusion
5.4 Suggestion for further research
1.1 BACKGROUND OF THE STUDY
The definitions and meaning of commercialization,
commercialization is taken to mean the transformation of the public enterprises
into vibrant and responsive business devoid of the usual bureaucratic
bottlenecks that are identified as the zone of public enterprises.
According to Odike (2001) managerial economics he saw
commercialization as an economic concept in which government owned businesses
are expected to pay their way. This means that they have to cover their cost of
production from the revenue they derived after sales. The decree No 25 of 1988
defined it as the reorganization of the enterprises in which such
commercialized enter prizes shall operate as profit making ventures without any
subvention from the government.
This can also be seen as a logical follow up to the bureaucratic
controls and moving the economy closer to a free market system.
There are various stages of commercialization that is partially
commercialized enterprises and fully commercialized enterprises, and it is
pertinent to distinguish clearly the differences between fully commercialized
and partially commercialized ones.
A fully commercialized enterprises is expected to e self
sufficient in both its recurrent as well as capital expenditure needs.
Where their normal operation would not generated the level of
resources needed from capital development, hey should be capable of raising
funds from the capital market based on the quality of the balance sheet.
Enterprises to be partially commercialized are expected to operate
like full-commercialized ones in terms of better management and profit
orientation. But because of the public nature of the goods and services
provided by these enterprise and in order to keep prices of products or
services as low as possible for public interest government provides financial
grants for their projects. The enterprises would be expected to earn enough
revenue to cover their operational cost.
In both full and partial commercialization enter prizes will enjoy
considerable autonomy and will have the power to operate on strike commercial
bases subject to the regulatory powers of government.
1.2 STATEMENT OF THE PROBLEMS
The commercialized parastatal are expected to operate under the
same broad terms and conditions as any private enterprise. Their relationship
with the government through their relevant ministries should be on a similar
basis as that of management with shareholders. But according to Molokwu (1999)
with full or partial commercialization the basic trouble wit public cooperative
will remain government interference.
Against this background, this research work seeks to identify the
major effects on governments controls on commercialized companies.
The first of these is that government still appoint the boards and
top management of these commercialized companies of which NIPOST is among.
These appointments are not based on consideration for high moral integrity and
technical enterprises to ensure that only those who can provide meaningful
direction for the progress of these enterprises are appointed. Most members of
the staff usually see such appointment to top management as unkind imposition
of strangers into positions which ought to be held by candidates with relevant
qualifications and experience.
Secondly NIPOST fully finance its operations yet some protective
decrees still remain.
These decrees do not afford NIPOST the freedom of charging truly
commercialized prices for its services.
Thirdly, because of some policy impediments in the system, the
commercialized enterprises have not resorted to the capital market in order to
cover their resources gaps.
Fourthly, many of NIPOST exchange were and are still being built
on the basis of political expediency rather than on economic rationality. These
exchanges have a Slurin chance of ever becoming profitable.
Fifthly, there is the problem of working without the attention of
the interests grows and to the federal nature of the country (ie federal
Sixthly, for commercialization to be a success government must
start a new culture of not eating of its cake and wantonly to have it.
therefore, if the spirit of commercialization must pick up and be sustained,
governments and their agencies must pay for their own accumulated bills.
1.3 THE PURPOSE OF THE STUDY
The study intends to achieve the following objectives
i. To identify how government owned commercialized
companies could grant adequate functional autonomy to carryout their commercial
ii. To redesign government owned commercialized
companies on the limes of the best business practice.
iii. To advocate for commercialization that could be
exposed to market forces characterized by he competition
iv. To find out if the companies have the autonomy
to charge truly commercial prices for their services to meet the increasing
cost of their operations to achieve efficiency.
v. To give them the independence to re-examine
their workers remunerations and make appropriate adjustment in line with the
existing economic reality in other to reduce temptation toward fraudulent
vi. To proffer solutions that may help in enhancing
the commercial dispositions of these companies.
1.4 SCOPE OF THE STUDY
Massive intervention of the state in the economy has been
generally one of failure. Consequently, the search for a major redirection in
the role of the state in the economy has become a universal issue. As a result
of the relevance to examine one unit of a larger whole due to the nature of the
study, a case study approach which represents an aspect of a larger phenomenon
is used, hence. This study was carried out in NIPOST in Enugu Metropolises of
Enugu - State.
1.5 RESEARCH QUESTIONS
i) What is the impact of government control on
ii) Do commercialization help in he improvement of
the nations economy?
iii) Does commercialization contribute to the
improvement / increment in the unit of production of companies?
iv) Has it helped in increasing the rate of
employment in the country?
1.7THE SIGNIFICANCE OF THE STUDY
The aim of this study is to x-ray the problems being encountered
in government’s controls and regulations on commercial operations of government
owned commercialized companies. The research is very relevant and necessary
because it will enable the policy makers to remove unnecessary bureaucratize
controls and move the economy closer to a free market system characterized by
Also, the information contained in this research project will be
of immense value not only to academic, but also to economic planners, policy
makers, investors / shareholders, governments who bright have been unaware of
the effects of governments controls and regulations on commercial activities of
the commercialized companies.
To academics, the research will help to provide or stimulate
thought in carrying out further studies in areas related to re-direct in the role
of the state in the economy. Similarly, to the policy maker and economic
planners, the findings and recommendations in this project will be of
significant value and assistance since they will then be better placed to
understand that government control and regulation of commercialized companies
need to be re-examined and curtailed.
TERMS AND CONDITIONS APPLY
For more informations on project materials and more