CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
One of the most distinctive phenomena in developing countries during the last three decades has been the growth and dominance of the state. In many countries, after independence from colonial rule, the state took on a wider role and greater authority. In the face of wide spread poverty and socio-economic inequality, the state became responsible for redistributing wealth and providing social welfare programmes.
Economic scarcity, lack of infrastructure and undeveloped private sector caused the state to assume economic functions and become a major entrepreneur and investor. And this is against the skeptism of the classical school about government’s ability to solve the socio-economic problem in any society. This skepticism is based on the argument that;
Economic and political freedom might likely be undermined by excessive reliance on the state.
v The government bureaucracy in many cases is unduly slow.
v The difficulties in controlling huge government organization due to in efficiencies which political consideration can breed and the difficulties in assessing the success/failure of government programmes. (Mansfield 1983:69-70).
Despite the above argument, the public sector in Nigeria remain quite large until recently, comprising at the federal level; alone, about 100 enterprises spread over agriculture, mining, energy, manufacturing, transport, commercial and other service activities etc. To name few we have; Nigeria Railway Co-operation (NRC), National Insurance Co-operation of Nigeria (NICON), Nigeria Telecommunication limited (NITEL), Nigeria Postal Service (NIPOST) etc.
Since the government of a country involves itself in multifarious activities and control the public sector, it should and must be able to manage the economy well in such a way that there will be good standard of living Government needs to excuse its programmes economically, technically, effectively with the adoption of the right approach to economic management.
Moreover, economic management simply means the process of planning, organizing, co - ordinating, communicating, making decision and directing the resources when combined together in order to achieve economic goals and objectives.
Conclusively, as the economic management of a country like Nigeria improves both effectively and efficient with the able hands of public sector which is managed and operate by the government the better the standard of living of the growing populace and the economy will be.
1.2 STATEMENT OF PROBLEM
Although, there have been series of research works by various researchable regarding to what extent public sector can bring about smooth running of an economy. But the pitfall is that why has he economy not been properly managed by the public sector in spite of the series of recommendation that had been made by many researcher?
For the purpose of this study, we attempts to fill gap in our knowledge by examining the managerial skills adopted in Nigeria Public sector and their effects on the economy.
1.3 OBJECTIVES OF THE STUDY
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