THE PROBLEMS OF FINANCING GOVERNMENT CORPORATIONS (A CASE STUDY OF TRACAS)

INTRODUCTION
Public corporation are enterprises, which are partly or wholly owned by the government, which private enterprises have been unable to take care of due to lack of adequate capital. Government have generally started playing a major role in economic development and in starting large enterprises in public sector.  Many parastatals come into being when it was believed that rapid economic development required the state to take on the role of an entrepreneur/should also be know that government involvement in running public sector help in shaping its economy.  Government ownership of these enterprises is to help improve its social and economic well being of her people and those amenities that the entrepreneurs cannot provide. In any organization, there are so many components put together that make for an effective performance.  One of the se components is fund.  The problem that arises is the adequacy of the fund for effective oiling of the operations of an organisation, throughout its lifetime.  Many organisations which started well at the initial stage have failed by the wayside die to shortage of available funds.
Public enterprises could be classified into four categories, according to the degree of government participation in ownership and intervention in management.  We have the governmental departments or ministries and agencies like INEC, NBTE.  Government invested enterprises where the government held at least 50% of the equity and appoint management.  Subsidiary company of government invested enterprises which allow the government to invest indirectly through government invested enterprises and others.  And also government back enterprises where the government hold less than 50% of the stock.  In developing nation there is a general believe that government should own and control enterprises; and government gave majority control of them appoint top management. Over the past decades, the number and variety for public enterprises in developing country like Nigeria, the overall performance of these enterprises have been rather disappointing.  They have suffered staggering loss thereby becoming a major drain on national budgets and the principal sources of heavy external borrowing.  They have equally failed to generate the expected job opportunities.  The public enterprises have been pioneers in strategic and technology intensive field and through the price of public sector product such as coal or electricity have also had a significant impact on overall price levels.
However, the following have contributed to the poor performance and poor efficiency in these enterprises: a.Obscure and sometimes conflicting managerial goals. b.Inadequate management accountability and autonomy. c.Excessive government accountability and autonomy. d.Excessive government interference in day to day management e.Poor personnel and incentive system f.Inappropriate pricing and credit policies g.Poor financing The have contributed to poor performance of public enterprises.  The financing and management of these parastatals caused a serious problem in our economy.  Its only very few government enterprises that are independent in the issue of financing, other solely depend on government.  The fate is yearly tied on the national budgets because they are financed by way of grants, subsidies or loan from government, if budget is delayed or cut down proposed expenditure, the funds of these enterprises will also be affected.  This will determine their performance for that very year whether surplus or deficit is to be made.
TABLE OF CONTENTSCover pageTitle pageApproval pageDedicationAcknowledgementProposalTable of contents
CHAPTER ONEINTRODUCTION1.1Background of the study1.2Statement of the problem1.3Objective of the study1.4Research questions1.5Research hypothesis1.6Significance of the study1.7Scope and limitations of study
CHAPTER TWO2.0Review of related literature2.1Overview of government corporation finance2.2Government participation in public corporation2.3Rational of public enterprises2.4Problems of public enterprises2.5Issue of financing government corporations2.6Features of public corporation and their impact on their policy and financial situation2.7Financial problem of public corporation2.8Commercial bank financing and interest rate2.9Inadequate funding and its impact on corporations Reference
CHAPTER THREERESEARCH DESIGNS AND METHODOLOGY3.1Source of data3.2Location of data3.3Research population3.4Description of respondent3.5Procedure in collecting data3.6Validation of instrument for data collection 3.7Method of data analysis
CHAPTER FOURDATA PRESENTATION AND ANALYSIS4.1Analysis and interpretation of questionnaire4.2 Testing of hypothesis4.3Statement of hypothesis 14.4Statement of hypothesis 114.5Statement of hypothesis 111
CHAPTER FIVEFINDINGS, CONCLUSION AND RECOMMENDATION5.1Summary of findings5.2Recommendations5.3References/BibliographyAppendicesAppendix A- Letter to respondentsAppendix B-Questionnaire