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1.       INTRODUCTION         

1.1   General Background to the subject matter

        There was Hills in Udi near Enugu in the then Anambra state. It was in 1909 that one of the most important minerals called ‘coal’ was discovered.

        Although further exploration continued the existence of coal in abundance in different parts of the country. Presently, the proven coal reserve in the country is over 1.5 billion tones.

        The quality of coal has been tested and accepted in the world market as one of the book. On the 18th of November 1949, 21 coal miners were killed at Iva valley mine in Enugu during a shooting incident. The miners engaged in a go-slow strike action to back up their demand for bread were given bullets. Following this incident a commission of inquring headed this incidents a commission of inquring in to the Enugu shooting incident in 1949.

 In its findings, Fitzgerald commission recommended that independents bodies be set up to manage business established by government.

        And so the Nigeria coal corporation was born through the enactment of ordinance No 29 of 1950. before this time, Nigeria coal corporation was jointly administered with Nigerian Railways under the ordinance 29 of 1950. the corporation is solely changed with the responsibility to mine treat, render saleable and sell coal and coal by-products in Nigeria and Overseas.

         In 1977, the Federal Government entered into a contract with overseas coal mining construction company of Poland (KOPEX) for the mechanization of the two (2) Enugu coal mines. The project was designed to increase daily product of coal from about 400 to 100 tounes. Contrary to expectation, kopex due to technical reasons and in consequence daily production reasons and in consequence daily production hardly exceeded two tones. The scheme was finally terminated in 1983. It is a matter of great concern that the industry suffered a servere decline and came to its present how to ebb inspite of government efforts to raise its tones.


Since the research is on the problems of effective management in government owned companies. The research took an indepth look at the problems militating against effective performance in government owned companies, before narrowing down to Nigeria coal corporation, Enugu.

        Some of the problems of government owned companies high lighted in this research work are:-

  1. Government does not have the mechanism to manage companies. In government procedures appears more important than result and discreation appears limited
  2. In government  owned companies nobody wants to take the bame for a mistake

Consequently executives of government owned companies usually take minimal asks for fear of having to explain to the ministry as bold decision that has not worked out well.

  1. Government owned companies follow government employment policies like salary awards, special grades for certain categories of labour etc. irrespective of productivity and whether or not such a policy is appropriate.
  2. The idea of “government owned” in Nigeria corrayes inefficiency and mediocrity.

Suppliers immediately refuse them normal good business dealings like credit facilities and are afraid of the constant charges that occur in such companies.

        It id in the opinion of the researcher that where this problems are taken note of the recommendation in this research work adequately carted for in planning g there is no doubt management of government owned companies will realize or achieve its predetermined mission, goal and objectives on time.

This is purely whast effectiveness and efficiency of management are all about.

 1.3   Problem(s) that the study will be concerned with

it is of general concerns as that government owned companies in Nigeria are performing below the expectation of the private enterprise. It is against this that the researcher concentrated on the problems the management are having in mistake these companies to achieve its goals and objectives.

        Hence the researcher work was on identifying and analyzing this problems and possibly making some useful recommendation to these problems.

        The research work had a major limitations due to the fact that the study was carried out on only one company. (Nigeria coal corporation Enugu) out of several other government owned companies in Nigeria.

        This may not serve as an ideal situation for generalization but the fact that the company operate within the same socio-economic environment, it was considered a fairly representative sample.

        The management of Nigeria coal corporation saw the work as mere academic exercise. They deliberately kept away some official documents that would have helped in the research work due to official policy against releasing such documents.

1.4   The Importance of studying the area

The aim and importance of studying this area is to examine all the various problems militating against effective management in Nigeria coal corporation. Enugu. To trace the root causes of the problem and suggesting solution for its remedies.

 These problems include:-

1.     A look at the contribution of appointments to the executive positions and seeking appropriate remedies.

  1. It will take a look at finding and concrete ideas for the effective and corporation Enugu.

iii.    to find out what lead to the termination in 1983 of a contract signed by the government in 1977 with a mining construction company of Poland (kopex) for the mechanization of the two Enugu mines. This contact was designed to increase the daily production from 400-1000 tones per day.

iv     Finally, it will examine the relationship between the management and the workers, management and Board of Directors and management and the government

v      It will also examine wheather appointment to the executives and managerial positions should be made by the government or by Board of Directors.

 1.5   Definition of Important terms

                Most of the terms used are managerial terms which includes:-


According to koot2 and O’ Donnell (1968), “Management is the process of geeting things done through and with other in an organization individual is allowed to work in an organization so long as his individual goal does not conflict with the organsational goal.

       Ejifor (1981) defines management as “the art or science of working in an organization through being directed by and by directing and co-odinating the activities of people to achieve one’s personal goals in the context of the goals of one’s organization.


        Vroom (1964) defined motivation as a process governing choices among alternative forms of voluntary activity.

 Management by objectives (MBO)

        George Odiome define management by objectives as a process whereby the superior and subordinate manager of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of the results expected of him and use these measures as guides for operating the unit and assessing the conbutations of each of its members.


1.     Ejiofor P.N.O (1982) management in Nigeria –

Theories and issues. Onistsha, Africana – Fep. Publishers Limited P. 208

  2.     Herold koont2 and Hein2 W. (1990) Essentials of

Management. New  York MC-Graw Hill publishing company P.320 

 3.     Geroge S. Odiorne; MBO –system of Managerail

Leadership London; sir Isaace Pitman and sons limited.

 4.     Drucker Peter (1954). The practice of management

New York: Harper and Row.