Problems Of Public Enterprises In Nigeria
Problems Of Public Enterprises In Nigeria. Get Informed On The Problems Of Public Enterprises In Nigeria. Check This Post For More.
Are you looking for the problems of public enterprises in Nigeria? Then you have definitely come to the right platform for this information. I have put together useful information to help you with the problems of public enterprises in this article.
We have to first understand what public enterprise is and what it should be before we look at the problems that has been hindering it’s growth now for years. Let’s get started!
What is public enterprise?
A public enterprise is simply a business organization that is wholly or partly owned by the state and is controlled through a public authority.
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What are the problems of public enterprise in Nigeria?
There are so many problems of public enterprises in Nigeria but i am going to give you only few because it is quite impossible to discuss all the problems of public enterprise in just a single article. Here are some of the problems of public enterprises in Nigeria:
- Lack of sufficient capital
- Lack of properly skilled workers
- Low demand
- Improper management of resources
- Raw materials problem
- Cost of operation
- Over staffing
- No proper price policy
Problems Of Public Enterprises In Nigeria
1. LACK OF SUFFICIENT CAPITAL
One of the problems of public enterprises that has been affecting it for years is the issue of lack of sufficient capital. This is by far one of the biggest challenges of public enter in Nigeria. They are not properly funded to carry out operations. We all know that without capital, it would be impossible for a business to run and without sufficient capital, it would be impossible for a business to run smoothly.
2. LACK OF PROPERLY SKILLED WORKERS
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the issue of lack of properly skilled workers. The public enterprises in Nigeria do not have the competent and properly skilled workers to be able to work smartly and creatively to improve the system.
3. LOW DEMAND
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the problem of low demand. Public enterprises are faced with the issue of high cost of operation and they do not usually have very high demand rate to compliment this. This is why many times, it feels like they are not so much effective. It should be known that any company or organisation that requires so much money for it to run and does not even get the demand of products that complements it will definitely run into debt with time and on the long run shut down.
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4. IMPROPER MANAGEMENT OF RESOURCES
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the issue of improper management of resources. We have talked about how public enterprises do not have enough capital. Despite the fact that there is no adequate capital, it does not have a proper management system of this capital.
Apart from the financial capital, it does not have a system that properly manages instruments that are needed for proper work to take place with back ups.
5. RAW MATERIALS PROBLEM
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the issue of raw materials. It should be noted that the cost of raw materials are really high and it had quite affected production in public enterprises. Many times, raw materials are even imported and this makes it quite difficult for public enterprises.
6. COST OF OPERATION
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the issue of cost of operation. It should be noted that the cist of operation of many public enterprises is ridiculously very high and it can be quite difficult meeting with this cost of its operation.
7. OVER STAFFING
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the issue of over staffing. It is one thing for one to have incompetemt and unskilled workers and it is another thing for a company to be over staffed. This simply means that there are too many workers than there are less work to do.
If a company or an organisation is over staffed, it would definitely be impossible to pay up its workers as at when due or it will be struggling to do so.
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8. NO PROPER PRICE POLICY
Another problem of public enterprise that has been affecting it’s growth for as long as we can remember is the problem of no proper price policy. This simply means that there is no clear price policy and the government has also failed to provide guidelines for this.
If there is no clear or proper price policy, it would be difficult to reach goals amd objectives that have been laid down. To add to this, there would be lack of consciousness of cost.
What are some of the possible solutions to the problems of public enterprises?
I have identified some of the possible solutions of the problem of public enterprises. Here are some of the possible solutions:
- Provision of proper capital
- Reduction of its intake of staff
- Creation of a proper management system
1. PROVISION OF PROPER CAPITAL
One of the possible solutions of the problems of public enterprises in Nigeria has to be the fact that the government has to provide proper capital for the smooth running of the enterprises.
2. REDUCTION OF ITS INTAKE OF STAFF
Another possible solution the problems of public enterprises in Nigeria is the fact that it has been over staffed and the government should help in reducing its staff intake.
3. CREATION OF A PROPER MANAGEMENT SYSTEM
Another possible solution the problems of public enterprises in Nigeria is the fact that a proper managerial system must be created if we want a very effective and smooth running public enterprises.
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