IMPACT OF MANAGING STATE OWNED ENTERPRISES AND ECONOMIC GROWTH IN AKWA IBOM STATE TRANSPORT CORPORATION (AKTC) UYO
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CHAPTER ONE
INTRODUCTION
- Background of the Study
State owned enterprises is one of the major resources that fostering economic growth and development of any given especially, in the developing world. Government owned enterprises may also be called public corporation. Public corporation is regarded as those government agencies backed by the state laws and charge with the responsibilities of utilization of available human and materials resources for the development of general welfare of the people (Onibonoje, 1975 and Obizeke 2004, 249:250).
Managing state owned enterprises is one of the major challenges facing in any state in Nigeria. The task of managing state owned enterprises are wholly in the hands of the public servants. That is to say that, we can not talk about the management of state owned enterprises without talking about the public service. Therefore, public service is said to be the bedrock of the executive arms of government, saddled with the responsibilities of implementation and execution of the policies formulated by the government (Ringold et al, 2013). In accomplishing this task, the public service involves in the formulation of policies and advising generally on policy matters. They are also responsible for the management of machineries of government and carryout the day-to-day duties to the public. One unique role of public service is that it is stands for the continuity of government policies and programmes and the transformation of government policy into the services for the masses (Obizeke and Anthony 2004).
Public service traditionally has been set up with express purpose of satisfying of some specific facet of the citizen needs example, health care, education, fire protection (service), police service, and transportation service. However, transportation is no doubt an indispensable catalyst for activating and stimulating of economic, social political and cultural development in any state. Thus, effective and efficient functioning of urban centers depends on the provision of good transportation system. This implies that transport infrastructure has to be rationally developed to ensure that movement of people and goods take place specially, economically, safely, comfortably and in a profitable manner (Sumaik, 2012).
In Nigeria where the government is the biggest employers of labour and production, government revenue and spending are the main drivers of economic activities Akwa Ibom State Transport Company (AKTC), come to play a major role in economic growth of Akwa Ibom State. AKTC was established in 1988 after the creation of Akwa Ibom State in 1987, for the purpose of bringing speedy economic activities to the state. Hence the establishment of AKTC an off shoot of Federal Urban Mass Transport Programme (FUMTP) came into being precisely in February, 1988 vested with responsibility of conveying goods and services to the masses. AKTC has been continually replenished and reinvigorated by the government until late 90’s when the corporation metamorphosed into Limited Liability Company. The government gradually withdrew its subvention grant to the corporation. Before now, the staffs of the corporation were mainly civic grade to start up the business.
When the corporation was established, policies were made through government bureaucratic settings, when it became a Limited Liability Company, Board of Directors were appointed by the government, their functions is mainly for policy formulation. They formulated policies and guidelines for the smooth operation of the enterprise while policy implementation and day to day running of the business is left in the hand of the general manager. Akwa Ibom State Transport Company is government parastatals under direct supervision of the Ministry of Works and Transport. AKTC generated revenue to sustain the enterprise; the main source of its revenue is from conveyance of commutes. They applied inter-city and inter-state routes which is its major source of income. To this end, this study would assess the efficient management of state owned enterprises and economic growth in Akwa Ibom State with references to Akwa Ibom State Transport Company (AKTC), Uyo.
- Statement of the Problem
State owned enterprises were established for the aims of provision of services for the masses. But, over the years, state owned enterprises have been faced with two underlined conflicting roles in Akwa Ibom State such as welfare and profitable roles, which is promoting political interference by the political elite, lack of accountability, lack of provision of services at subvention rate, and lack of employment opportunities. The purpose of establishing Akwa Ibom State Transport Company has been defeated by the above mention challenges. Against this background, this study therefore, sought to assess the impact of managing state owned enterprises and economic growth in Akwa Ibom State, with particular reference to Akwa Ibom State Transport Company (AKTC) Uyo.
- Objectives of the Study
Specific objectives of this study are;
- To examine the impact of managing state owned enterprises and economic growth with reference to Akwa Ibom State Transport Corporation (AKTC) Uyo.
- To examine the challenges facing the management of Akwa Ibom State Transport Corporation (AKTC) Uyo.
- To find out the impact of privatization of Akwa Ibom State Transport Corporation and economic growth of the state.
- To find out the problems affecting Akwa Ibom State government in managing state owned enterprises.
- To suggest the possible solutions to the problems affecting Akwa Ibom State government in managing state owned enterprise.
- Research Questions
The researchers really on the following questions
- What is the impact of managing state owned enterprises and economic growth of the state?
- What are the challenges facing the management of Akwa Ibom State Transport Company?
- What are the impact of privatization of Akwa Ibom State Transport Corporation and economic growth of the state?
- What are the problems affecting Akwa Ibom State government in managing state owned enterprises?
- What are the solutions to the problems affecting Akwa Ibom State in managing state enterprises?
1.5 Research Hypotheses
The following hypotheses would be tested in order to ascertain the validity of the research work.
Hypothesis 1
H0: There is no significant impact in the management of Akwa Ibom State Transport Corporation and economic growth in the state.
Hypothesis II
H0: There is no significant relationship between privatization of Akwa Ibom State Transport Corporation and economic growth of the state.
1.6 Significance of the Study
- It is hoped that the outcome of this study will help to improve the management of Akwa Ibom State Transport Company by giving them insight an insight into how and what, effective of management is all about.
- The government itself will benefit from the findings of the study would apply.
- The students in higher institution of learning will equally derive some knowledge from the project, as it will serve as reference material to those in the similar field.
- Scope and Limitation of the Study
This study is limited to Akwa Ibom State Transport Company (AKTC). Funds were also the constraint to the researcher and there was a problem of getting the respondents to complete the questionnaire on time.
- Definition of Terns
To avoid the problems of understanding of the study, some key words/terms used in the study are hereby defined.
Public corporation:
Public corporation is defined as government agencies established by state laws and charged with the responsibility of tapping available human and materials resources for development of general welfare of the people (Onibouroje, 1975 and Obizeke 2004, 249:250).
Efficiency:
Efficiency is the achievement of the ends with the least amount of resources. It is the maximum achievement of the output as the result of input.
Manager:
A manager is a person who attempts to achieve the stated objectives of the organization by directing, and controlling of activities towards the achievement of a set target5 goal.
Motivation:
Motivation is defined as an inner force that drives individual to achieve personal and organization goals and objective (Greenbery and Baron 2005) public service.
Management:
Management is defined as the coordination of all organize activities that has to do with implementation of government policies and programmes through efficient and effective management of human, material and financial resources.
Public Service:
Public service is defined as a machinery of government charged with the responsibility of formulation of and implementation of government policy through public administrators in accordance with laid down rules and procedures (Okonkwo 2008).
Parastatals:
This refers to all government owned companies that are outside of the framework of the civic service.
Transportation:
Transportation is defined as the system of conveying goods and services from one place to another for economic purpose through the use of various means of transport.
Government:
Government is defined as an institution of a state through which the will of the state is formulated expressed and attained.
State Owned Enterprises (SOES)
State owned enterprises are government owned companies established by laws to perform commercial and social activities (Pratukchai & Patanapongse, 2012).
Privatization:
Privatization is an economic policy aimed at reducing the involvement of the state in the economic for increased private participation (Botlhale, 2012).