Problems of Public Enterprises in Nigeria
The problems of public Enterprises in Nigeria are those factors that hinder the growth of public organizations.
- Inadequate financing
- Incompetent management
- Lack of trained personnel
- Get rich quick syndrome
- Lack of competitive environment
- Government interference
- Lack of clear objectives
- Inability to Market Products/Services
- Indiscipline among managers and employees
Inadequate financing: The inability to raise funds to finance business activities is one of the problems faced by Nigeria public Enterprises.
funds are required for expansion, to build lease or buy office accommodation. funds are needed for paying salaries and wages, product advertisements etc.
Incompetent management: Poor managerial skills result in poor business decision. Poor decision-making may be as a result of the following:
– Not knowing the right thing to do – this can happen when the manager is not trained or experienced in his job. – Self-justification – this is when a wrong decision is taken just to satisfy the interest of the person that took it.
Lack of trained personnel: Some public Enterprises find it difficult to attract qualified workers into their organizations. This is because trained workers prefer to be self-employed rather than be a salary earner.
Get rich quick syndrome: The get rich quick syndrome can be attributed to two factors: the negative notion that government property belongs to nobody, which gives public officers the impetus to loot. The second reason is based on societal values where everyone wants to become rich overnight. No one is recognized in society if he’s not rich.
Lack of competitive environment: Most of the public enterprises in Nigeria enjoy monopoly. Once they have monopoly, they hardly innovate or offer better services because their customers are not presented with another alternative.
Government interference: Public enterprises in Nigeria are owned and funded by the government, which makes the government exert so much influence on the activities of those public enterprises.
Lack of clear objectives: Public enterprises have served as a platform for patronage and promotion of political objectives. Consequently, managers of Public Enterprises suffer from operational interference by civil servants and political appointees.
Inability to Market Products/Services: Nigeria public enterprises are faced with the problem of marketing their goods and services due to modern technology.
Indiscipline among managers and employees: The fact that public enterprises are owned by the government and the notion that government money and property do not belong to any particular or single individual and are unlimited, the tendency to deceive and get whatever we can from the national cake cannot be overemphasized.
Some managers and employees from the day they assume duty in a firm start to plot on how to defraud the firm of funds entrusted to their care, particularly if their job involves purchasing and keeping money. The moment these public officers discover that high confidence is reposed on them and more money is given to them, they start diverting the money.
In order to conceal their dirty work, most of them burns down places where those information are kept, so that it will never be traced to them.
