Managing public commercial enterprises in Nigeria: The case of Kwara State commercial parastatals

Employing the usual profit criterion to evaluate performance of the commercial parastatals in Nigeria, as revealed in the case of Kwara State, the enterprises are a failure. The differences in the management of the parastatals and similar but private enterprises may have accounted for differences in performance. Among the features of management of the parastatals are the role of government in the appointment of chief executives without necessary regard to merit; the relatively poor conditions of service as obtained in the civil service; and the huge debts owed the parastatals by governments. To improve performance, the following measures should be adopted. There is need to remove commercial parastatals from the civil service to attract quality management staff while government control should be substantially relaxed. Improved funding should be guaranteed through the financial houses while government should settle their debts to the organizations. The issue of privatization is worth proper consideration with a view to selling the companies to the private sector.