Nine problems faced by statutory corporations in Nigeria.
Bad economic conditions
The world wide economic recession and the consequent poor condition of the Nigerian economy also affect the public corporation to the same extent.
Shortage of capital for development
In Nigeria, government resources are not inexhaustible and there are competing demands. What is allocated eventually to the corporations is not enough to tide them through and provide for development as well.
Public Suspicion
The arbitrary increase in the prices of their services makes the public suspicions. Many experts feel that poor and inefficient services, mismanagement of funds, over-invoicing etc should not be compensated by doubling or tripling of prices. Cost of production is said to be too high in the public corporations because contract and invoice prices are inflated in many cases. The public often suspects that they are being asked to pay the price of mismanagement as prices asked for the services continue to soar.
Poor Management
Many board and council members see their appointments as opportunities to takes a slice of the public cake. It is often alleged that many board members spend all their time pursuing contracts and arranging for distributorships.
Frequent changes of board members
The frequency with which the boards and councils are reconstituted tends to defeat the purpose for which they are appointed.
General laxity on the part of staff
In the private sector, staff work hard because they know that if the company fails to break even, it would probably liquidate and they would lose their jobs.
Dumping ground for inefficient staff
It is often alleged that certain staff are appointed or promoted, not on the basis of their qualifications, efficiency and productivity, but on the basis of their qualifications, efficiency and productivity, but on the basis of their relationship with people in authority.
Excessive centralization
The lack of decentralization of public utilities in company like Power Holding Company of Nigeria Plc (PHCN) makes their management weak and decision-making slow.
Poor conditions of service for staff
It is often argued that the unified grading system makes it difficult for the public corporations and companies to attract staff with exceptional quality.
