MANAGING STATE OWNED ENTERPRISES AND ECONOMIC GROWTH IN AKWA IBOM STATE: A CASE STUDY OF AKWA IBOM STATE TRANSPORT CORPORATION (AKTC) UYO
- BACKGROUND OF THE STUDY
State owned enterprise is one of the major resources that fostering economic growth and development of any given nation especially, in the developing world. Government owned enterprise may also be called public corporations. Public corporation is regarded as those government agencies backed by the state laws and charged 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 many states in Nigeria. The task of managing government owned enterprises are wholly in the hands of public servants. That is to say that, we cannot talk about the management of the state owned enterprise without talking about the public service. Therefore, public service is said to be the bedrock of the executive arms of the 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 the machinery of government and carryout the day-to-day duties to thepublic. One unique role of public service is that it is stand for continuity of government policies and programmes and the transformation of government policy into services for the masses. (Obizeke and Anthony 2004).
Public service traditionally has been set up with express purpose of satisfying some specific facets of the citizen needs example, health care, education, fire protection (service), police service, and transportation services.However, transportation is no doubt an indispensable catalyst for activating and stimulating economic, social, political and cultural development in any state. Thus, effective and efficient functioning of urban centers depends on the provision of a good transportation system. This implies that transport infrastructure has to be rationally developed to ensure that movement of people and goods takes place speedily, economically, safely, comfortably and in a profitable manner (Sumaila, 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 co-operation metamorphosed into a limited liability company. The government gradually withdrew its subvention grant to the co-operation. Before now, the staffs of the co-operation were mainly civil grade to start off the business.
When the Corporation was established, policies were made through government bureaucracy, When it became a limited liability company, board of directors was appointed by the government, their function is mainly that of policy formulation They formulated policies and guidelines for the smooth operation of the enterprise while policy implementation and the day to day running of the business is left in the hand of the General Manager. Akwa Ibom State Transport Company is a government parastatal under direct supervision of the Ministry Works and Transport. AKTC generated revenue to sustain the enterprise; the main source of its revenue is from conveyance of commuters. They applied inter-city, and inter-state routes which is its major source of income. To this end, this study would assess act of managing state owned enterprises and economic growth of Akwa Ibom state with reference to Akwa Ibom State Transport Company (AKTC).
1.2 STATEMENT OF THE PROBLEM
State Owned Enterprises were established for the aims of provision of services for the masses. But over the years,