THE IMPACT OF PUBLIC ENTERPRISES ON SOCIO-ECONOMIC DEVELOPMENT

Introduction

1.1 Background Of The Study

There exist a number of arguments put forward for the establishment of public enterprises and their participation in a nation’s economic activities. Public enterprises were established in Nigeria after Second World War. The post independence period marked the proliferation of public enterprises in Nigeria, before local government were used as a strategy of development by the colonial government.

Their establishment reflects the desire of government to guide and to directly control socio-economic progress and development in the country as apply put by Gboyega.

“They are an incursion into essential economic and social areas that private enterprises are reluctant or incapable of entering due to either the enormous capable involved or low profitability promotion of employment and skills needed for maintaining stability in a depressed economy and fair distribution of community needs.

The existence of public enterprises is very important to a developing nation as Nigeria, they are instruments for implementing socio-economic development programmes and for providing essential goods and services at a reasonable charges to the public at large.

This study concentrates on the positive and negative impact of public enterprises on socio-economic development at Kaduna State and the problems associated with public enterprises activities. More specifically this research will examine Zaria Industry which is one of Kaduna State public enterprises expected to contribute to industrial development of the state. In this view, what is the economic and social impact of this company on the development and people of Kaduna State? Public enterprises are partly or wholly owned and controlled by government to accomplish the specific objective of stimulating and accelerating socio-economic progress and development in the country and Kaduna State.

The government believes that public enterprises alone to assume key role of accelerating development, the aim was to get away from its traditional caretaker and regulatory function and move into active participation in the production sectors of the economy.

The Nigerian public enterprises as a whole operate in diverse fields of activity such as fogging steel, refining and mining oil, producing fertilizers, hydro electric. Power generation and financial institutions, etc.

This means that government plays a leading role in many sectors of the economy in order to harness the fruits of economic growth for overall socio-economic development and progress. In order words, the work is undertaken to see the contributions of public enterprises, represented by the organization in question, Zaria Industry to the economic development of Kaduna State.

1.2 Statement Of The Problem

There is an outcry in Nigeria that public enterprises are inefficient and corrupt and do not contribute positively to economic development. Inputs into public enterprises, their contributions to economic development continue to be very low. It is on this note that a study of this nature becomes inevitable.

The organization under review (Zaria Industry) was set up by the government of Kaduna State. The aim behind its creation was to contribute to the industrial development of the state and to provide employment for the people.
A survey of the economy of Nigeria shows that public enterprises are established to promote national economic development, to provide for the happiness and prosperity of every Nigeria by producing certain essential and vital goods and services to the Nigeria public so that the country is not held to ransom by a group of self-centred and unscrupulous entrepreneur. In this view, what is the social and economic impact of this company on the development of Kaduna State?

1.3 Objectives Of Study

This research work seeks to bring out the contributions and role of public enterprises on socio-economic development of Kaduna State. The Zaria Industry as an example of a public enterprises is used as a case study.

Therefore, the purpose of this research include:

1. To identify variables responsible for the low level of performance and examine the means by which this performance can be improved.
2. To examine the management of the company as well as its operations to see to what extent this is the cause of its poor performance.
3. To determine the role of public enterprises in the growth and success of the socio-economic development.

1.4 Significance Of The Study

This research, besides being a search for knowledge as an end in itself, is also a search for solution to a societal problem. As a basis research, its finding aimed at drawing generations that can stand the test falsification in both time and space. As an applied research, its finding aimed at producing ideas that can be used to bring about improvement in the management of Zaria Industry and public corporations in the whole country.

There is no better time than now for this study in view of the fact that all states and the Federal Government are either privatizing or commercializing their public corporation as a way out of their poor performance. This study therefore brings to limelight the Zaria industry as regards the roles assigned to it by the enabling act and how far it has rightly carried out these roles. If it has failed, this project will establish and make recommendations for solving identified problems.

1.5 Hypotheses To Be Tested

Based on the above problems and aims of the study, this study hypotheses are:

1. That management is responsible for the poor performance of Zaria industry.
2. That lack of enough finding of public enterprises inhibit the effective impact on socio-economic development of Kaduna State.

1.6 Scope Of The Study

In undertaking a research work, its scope is normally confined with respect to its geographical and time dimensions. The fixing of such boundaries is usually resorted to due to the problems posed by the processing/management of large data.

1.7 Limitations Of The Study

The researcher therefore intends to examine in detail the management and performance of Zaria Industry. This case study would involve an analysis of the functions assigned to it and an objective assessment of the organizations performance. An investigation would also be conducted on its management, structural, operational and environmental problems of the industry and possible solutions.

1.8 Definition Of Concepts

In an academic pursuit of its nature, it is usually wise to define some key concepts. Because a definition of key concepts is in order in that it carried the reader along with the researcher in the discourse throughout the study.

The following terms are therefore defined as they are used in the context of this study:

Public Corporation

This is a corporate body (such as NEPA) which can enter into contract and acquire property of its own. It is often exempted from most regulatory and prohibitive statutes related to public spending and enjoys greater freedom and flexibility in the conduct of its own affairs than central department/ ministries.

State companies

A state company is an enterprise established under company law with the government having controlling interest through shareholding or ownership. It may be wholly or partly owned by government.

Economic Development

According to the International Encyclopedia of the social science “economic development or growth may be defined as a rapid and sustained rise in real output per head and attendant shifts in the technological, economic and demographic characteristics of a society”. It also means an improvement or increase in the living standard of the people. It is a qualitative change that occurred capacity to generate and sustain growth over a long period of time.

Performance

Performance as used in the study means two sets of ideas. Firstly it could be defined as the ratio of useful work performed or of output produced to the total energy or input expended. Secondly, it indicate a degree of goal achievement of the organization this include sub-goals and survival of the organization.

Efficiency

This is defined by the Websters New Twentieth Century Dictionary as the ability to produce the desired effects with minimum affects experience or waste (It also means) the role of effective work to the energy expended in producing it.

Effectiveness

By this is meant having the quality of or ability of producing not just results but a definite and desired result.

1.9 Structure Of The Study

The research study is designed to contain five chapters.

Chapter one is an introductory chapter which contains statement of the problem; aims and objectives of the study; the significance of the stud; hypotheses to be tested; scope and limitation of the study; definition of concepts; plan of the study and research methodology.

Chapter two contains theoretical framework and a review of related literature. The research has tried to present in this chapter some of the major works that have been carried out on the subject matter and their relevance to the present study.

Chapter three deals with the historical background of Zaria industries; organizational structure; sources of revenue; expenditure pattern; operational performance and management problems.

Chapter four presents the data collected for the study. It contains the analysis and interpretation of the data.

Chapter five is the concluding section of the study. It contains the summary, major finding; conclusion and policy recommendations for improvement of the company.