This study was on investment management practices and growth of public enterprises in Enugu state, Nigeria. The objective of this thesis was to identify investment management practices employed in public enterprises in Enugu State; and explain how the adoption of appropriate investment management practices promoted the growth of the enterprises. The purpose of this study was to analyse any observed growth of public enterprises in Enugu State in terms of the extent to which they employed proper investment management practices. In the course of this study, we adopted a survey research method. Three methods of data gathering namely; documents, questionnaire and oral interviews were used. Hence, primary and secondary data were used to analyse the data. In applying purposive sampling technique, responses from a total of 20 respondents were analysed. Mean score statistics and single classification analysis of variance (ANOVA) were employed to analyse the data. The data were presented in tables, bar chart, pie chart and graphs. Research revealed that the extent to which: capital budgeting decision practices were applied in public enterprises in Enugu state was low in ENTRACO, low in IKH, average in ESMC and high in NLR; control practices were adopted in public enterprises in Enugu State was average in ENTRACO, average in IKH, high in ESMC and high in NLR; and employees of public enterprises were motivated was low in ENTRACO, low in IKH, average in ESMC and high in NLR. Consequently, auxiliary enterprises in ENTRACO was 0, in IKH was 0, in ESMC was 1 and in NLR were 3. Internal rate of return in: ENTRACO was 19.8%, IKH was 10.2%, ESMC was 33.9% and NLR was 34.2%. ANOVA revealed that the application of appropriate investment management practices in public enterprises in Enugu State influences their growth. This analysis was in agreement with our empirical findings. Based on our findings, we recommended that public enterprises should adopt; internal rate of return technique to ascertain the internal rate of returns on investments; reappraisal of investment to determine whether value for money was being obtained from any level of investment; and sponsoring of employees for studies on project initiation so as to
equip the employees with the skill of initiating investments.
1.1 Background to the Study
The solidity of Nigeria’s public enterprises became significant immediately after
independence on 1st October, 1960. On assumption of power, the nationalists articulated a clear role for public enterprises as instruments for promoting national development. The indigenization policy of 1972 as enacted by the Nigerian Enterprises Promotion Decree of
1972, which took effect from 1st April 1974, with its subsequent amendment in 1976 provided a concrete basis for governments’ intensified efforts towards participation in the ownership and management of public enterprises (Elijah, 2009). The government capital investments in public enterprise totaled 23 billion naira between 1975 and 1985. In addition to equity investments, government gave subsidies of 11.5 billion naira to various states for the maintenance of their enterprises (Ogundipe 1986). Government has a lot of roles to play in order to raise the standard of living of her citizens.
For instance, this developmental role of the state was provided for in the country’s 1979 constitution and also enshrined in the 1999 constitution. According to sections 16 of 1979 constitution and 24 of the 1999 constitution: The state shall:
– Harness the resources of the nation and promote national prosperity and an efficient, a dynamic and self reliance economy.