THE EFFECTS OF GOVERNMENT CONTROLS ON COMMERCIALIZED COMPANIES (A CASE STUDY OF NIGERIA POSTAL SERVICE COMMISSION NIPOST PLC ENUGU STATE)

THE EFFECTS OF GOVERNMENT CONTROLS ON COMMERCIALIZED COMPANIES (A CASE STUDY OF NIGERIA POSTAL SERVICE COMMISSION NIPOST PLC ENUGU STATE)

ABSTRACT

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 case study.

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 government.

CHAPTER ONE

1.0       INTRODUCTION

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.

THE EFFECTS OF GOVERNMENT CONTROLS ON COMMERCIALIZED COMPANIES (A CASE STUDY OF NIGERIA POSTAL SERVICE COMMISSION NIPOST PLC ENUGU STATE)