Nov 12, 2019 No Comments ›› OpenBook


The research is titled the impact of Public Enterprises on socio-economic development in Kaduna State; A case study of Kaduna State media corporation. Public enterprises are organizations established and owned by the government wether at federal, state or local government levels. One of the interventions of government to take the commanding height of the nations economy is setting up of the public enterprise. Just as the private enterprise, they are supposed to be self-financing and be free from undue government influence. The objectives of the study include, taking the general look at the evolution of public enterprises in Nigeria, to determine the impact or role of public enterprises in Kaduna State. The study sourced both primary and secondary data. The primary data comprised of the 167 respondents from Kaduna State media corporation, while, the secondary data were the information obtained from textbooks ,journals, bulletins and magazines. From the findings obtained, it was revealed that, Kaduna State Media Corporation had impact on socio-economic development in Kaduna State. In the areas of performance, financing and management of Kaduna State Media Corporation, the staff commented well of the effort of government to see that Kaduna State Media Corporation function well. certain recommendations were made to the government. Annual budgetary allocation should be increased to the corporation for smooth running of its activities, manpower training should be intensified to make the staff effective and efficient in their performance, modern communication technology should be procured to enable the corporation to move along  the technological world. All the materials consulted in this study were duty acknowledged in the references.




1.1     Background of Study

Public enterprise in Nigeria, over the years, has been the spectacle for debate by social and economic critics as it relates to the politics economy of the nation. The current reality in public administration is predicted on efficiency and qualitative service delivery of public goods. Public and private enterprise in today’s global economy complement each other especially in a developing country like Nigeria. In the submission of Akhape (2008),Public enterprise occupies a central and substantial part of the public sector economy of any given country. He posited that, one of the interventions of government to have the commanding height of the nation’s economy is setting up of the public enterprise.Just as the private enterprise, they supposed to be self-financing and be free from undue government influence. Unfortunately, what we have are public enterprises that rely majorly on government subventions and as such, are seen as a conduct pipe to drill the common wealth of the nation.

Several administrations in Nigeria over the years have enunciated policies on how to strengthen the public enterprise, otherwise known as state-owned enterprise (SOE) which informed the decision on commercialization and privatization. The major actors in the commercialization and privatization policy failed to understand the premium placed on public enterprise as a stimulant for socio-economic growth and development. To some, the only way for public enterprise to thrive in the country is through privatization and commercialization may not just be the best solutions.

On account of history, most of the state owned enterprises (SOEs) established on the attainment of independence were set up by either the federal government or the

regional governments and with the creation of states ,many of such enterprises  were set up by the state governments. One major reason why public enterprises featured prominently in developing economies is because, at independence, their indigenes were either too poor and too unknowledgeable and so, could not muster enough capital to embark on major commercial projects or run public enterprise. So, the government has to close the gab. Many sectors such as telecommunications (before privatization) power, oil and gas could only be established as public enterprises because they are highly capital intensive. Also, because of the unattractiveness of some sectors such as the water and agro-allied industry, government has to come in to invest in the area (Ojeifo, Ahmed, 2005).

In-Nigeria, many of the public enterprises started to mature in the early eighties (80s) the maturity of these companies, coincided with the Third World debt crisis that gripped Brazil Venezuela, Agentina,Nigeria and the rest of the world in the early eighties and the International Monetary Fund (IMF) visited many of these economics with the destructive Structural Adjustment Programme (SAP). While a number of these developing countries resisted the SAP, feeble ones like Nigeria could not partly because of its military regimes that needed to permeate western blocs and their poor knowledge of western neo-colonial entrapments (Igbuzor 2009).

The major function of the government is to make policies and get them implemented. Certain policies of government require programmes and projects for their implementation. Government ministries have operational arms to carry out such programmes and projects. These are known as public enterprises.

Therefore, the existence of public enterprises are very important to developing nations such as Nigeria. The instrument for implementing socio-economic development and providing essential goods and service at a reasonable charge to the public at large.

The government believes that, public enterprises were the answer to inability of the private enterprise to assume very role of development. The aim was to get away its transitional and regulating function, and more to an area of active participation in the production sector of the economy.

This means that, government plays a leading role in all sectors of the economy in order to harness the fruit of economic development and progress.

1.2       Statement of the Problem

The non performance of the public enterprises in Nigeria has prompted services of discussions and policy recommendations on how best to move them out of their present difficulties. Privatization and commercialization of public enterprises is a vital tool for the upliftment of a country’s political economy more especially, the developing countries like Nigeria, regrettably, the problems facing this privatization and commercialization programmes of public enterprises are too numerous to mention; corruption, lack of transparency, inconsistently and incredibility to mention just a few.

However, it is based on these problems that the basis of propositions for effective performance of public enterprises in Nigeria in general and in Kaduna in particular are being hindered.

Therefore, the discrepancies between the present and standard performance in the public enterprises in Kaduna State and socio-economic development constitute the problem, hence necessitated the need for research.

1.3       Objectives of the Study

The research aims at examining the Impact of Public Enterprises on Socio-economic Development in Kaduna; A case study of Kaduna State Media Corporation (KSMC) The following objectives of the study are:

  1. To take a general look at the evolution of public enterprises in Kaduna State.
  2. To determine the performance of public enterprises in Kaduna State.
  3. To know the positive or negative impact of public enterprises in Kaduna State.
  4. To identify features, reasons and finances of public enterprises in Kaduna State.
  5. To identify challenges facing public enterprises in Kaduna State.

1.4       Research Questions

The research questions which researcher seeks to find answers to are as follows below:

  1. Do public enterprises have any role to play towards State development?
  2. What are the contributions of public enterprises to State development?
  3. What are the negative impact of public enterprises?
  4. How effective are the activities of public enterprises to State development.
  5. What are the justifications of establishing public enterprises in Kaduna State?

1.5       Hypothesis

A set of assumptions of speculation which in tentatively accepted as the basic for an investigation. Hypothesis are testable statements about the relationships between variables. They are meant to be tested statistically and accepted or rejected on the basis of the findings which arise from the study. The hypotheses to be tested in the project are:

HI:       There is impact of public enterprise on socio-economic development in Kaduna State.

Ho:       There is no impact of public enterprises on socio-economic development in Kaduna State.

1.6       Significance of the Study

There are different purposes which the government may intend to establish public enterprises. Perhaps, one of these reasons is that, it has to do with positive transformation of the society  by the services rendered to the public. What is to be noted here is that how far is the level of satisfaction from people can be related to the services rendered by these public enterprises? Therefore, an attempt is made to answer the above question and at the end, suggest solutions and recommendations with a view to improve the performance of public enterprises andjustify the ample resources of funds in which it was established.

1.7       Scope of the Study

The scope of this study is the restriction imposed on the research by the researcher himself. This shall be limited to Kaduna State Media Corporation (KSMC) because of resources constraints both human and non human such as funds, time, poor response from the respondents, non availability of information from the appropriate authorityand other personal problems of the respondents.

1.8       Limitation of the Study

This is the restriction imposes on the research by itself, such asdearth current literatures on the topic of discussion, gathering of relevant information, etc.

1.9       Definition of Terms

Public:  This refers to the entire people or citizenry at a whole that public enterprises are means to provide goals and services for them.

Enterprise:   Is a business venture set upwith a legal entity to produce goods and services to members of the public. It can sue and be sued in its own name.

Public Enterprises:   This means freedom of independent from government ministry or department in terms of policy decision , operations and management.

Control:   Power or authority to direct or restraint either directly or indirectly to achieve the objectives of the organization.

Socio-economic Development:   An improvement or increase in the living standard of the people.

Commercialization:   The reorganization of enterprises wholly or partly owned by the government in which such commercializedenterprises shall operate as profit-making commercial ventures and without subvention from the government.

Privatization:  Is defined as the relinquishment of parts or all of the equity shares or interests level by the government or any of its agencies, in enterprises wether wholly or partially owned by the government.


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