THE PROBLEMS OF FINANCING GOVERNMENT CORPORATIONS (CASE STUDY OF TRACAS)
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AcknowledgementCHAPTER ONE1.0 INTRODUCTION OF THE PROBLEMS OF FINANCING GOVERNMENT CORPORATIONS
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Research Questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.9 Definition of terms
2.0 LITERATURE REVIEW OF THE PROBLEMS OF FINANCING GOVERNMENT CORPORATIONS
2.1 Overview of government corporation finance
2.2 Government participation in public corporations
2.3 Rationale for public enterprises
2.4 Problems of public enterprises
2.5 Issue of financing government corporations
2.6 Characteristics of public corporation and their impact on their pricing policy and financial situation
2.7 Financial problems of public corporation
2.8 Commercial banks financing and interest rate.
2.9 Inadequate funding and its impact on corporations
3.0 RESEARCH METHODOLOGY OF THE PROBLEMS OF FINANCING GOVERNMENT CORPORATIONS
3.1 Research design
3.2 Population of the study
3.3 Sample and sampling technique
3.4 Sources of data
3.5 Method of data collection
3.6 Procedure for data analysis
4.0 DATA PRESENTATION AND ANALYSIS OF THE PROBLEMS OF FINANCING GOVERNMENT CORPORATIONS
4.1 A brief introduction of the chapter
4.2 Questionnaire / distribution
4.3 Presentation of data
4.4 Test of hypothesis
4.5 Interpretation of results
FINDINGS, CONCLUSION AND RECOMMENDATIONS
After the presentation and analyzing of the data collected the researcher made a number of findings.
Table 4.1 shows that the government of Anambra state refused to see the need to finance TRACAS. This was not based on mere shows but was proved statistically with chi-square technique of testing hypothesis where the calculated value of X2 = 5% at 0.05 level of significance was found to be and the critical value of 0.05 at 12 degree of freedom was found to be 3.84 this justified the research’s assertion
Table 4.2 shows that insufficient effect on the activities of TRACAS. This was not based on mere clone but was proved statistically with chi-square technique of testing hypothesis where in the calculated value of X2 = 7.1 level of significance was found tp be 0.05 and the critical value of X2 = 5.99 at 2 degree of freedom was found to be 55.99 this justified the researcher’s assertion as to the insufficient finance from commercial bank on the activities of TRACAS LTD.
Table 4.3 reveals that inadequate funding of TRACAS has a significant effect on its activities and performance this was proved statistically using chi-square method of testing hypothesis where in the calculated value 0.20 at 20% level of significance was found to be 3.60 and the critical value of 0.20 at 2 degree of freedom was found to be 3.22. the researcher is thus justified to make the above assertion.
Table 4.4 reveals that inability of TRACAS to meet debt repayment schedule of financiers militate against the availability of funds to TRACAS. This was proved statistically using chi-square method of testing hypothesis, where in the calculated value of 0.10 at 10% level of significance was found to be 5.50 and the critical value was found at 2 degree of freedom was found to be 4.60. the researcher is justified to make the above assertion.
Government enterprises are described as a machinery or control of state government through which essential services for the public are provided. This describe government enterprises as very important organization of government through which she tries to fulfill its political, social and economic obligation.
The government therefore, should provide adequate fund for the running of these coroperations inadequate funding of them will automatically effects their operations.
The government should be able to provide this by backing them up in their lending. Again the commercial banks should try as much as possible to borrow money to these corporation. The high rate effect these commercial bank recharge money for the fear of servicing and paying baler the principal cum. If the activities of these corporation are not encouraging, it will automatically affects the economies as a whole, which at long run will fall back on the government. Government should take up a drastic steps in funding up of these corporation and not allow them to collapse. Adequacy of fund is good for the effective oiling of the operations of an organization throughout its life time.
The following recommendation are made to this work.
The government should support these corporations financially by giving them grants and back to collect loans from commercial banks. Also government should support them by using its influence to get location where such business could be done in order to yield money and give correct services to the members of the public.
Sufficient finance should be made available to government corporations through commercial banks, this has to be discovered to be the major failures and problems of corporations. Sufficient supply of adequate finance will help the corporations to run and operate their activities efficiently.
However, the ability of corporations to meet debt repayment schedule of financiers militate against the availability of funds. Its not funding that most corporations do not meet up with this, but financiers or commercial banks through which they obtain funds should not close the door of giving out funds to corporations. Financiers and commercial bank should instead find a better way of collecting back their money from these corporation at the agreed date, this will enable them to be faithful even as they claimed when they went for such funds. Commercial banks, and financiers should never be discourage to the extent of refusing finance from these corporations.
Inadequate funding of corporations has a significant effect on its activities and performances. Government should try and back up these corporations under their control by providing enough fund to then. This will help the corporations to be of help to the nations and not a drain on the nation’s yearly budget. Lack of fund has really prevented them from backing up the numerous project they had intend to do and thereby hs performed badly generally.
Government should also act as surety or guarantors to these corporation to enable them obtain fund from commercial bank. Commercial banks are afraid to lend out huge amount of money to these corporation without an adequate security. It affects their working capital and so having not be measuring up to the expected standard.
Interest rate charged by commercial banks on lending out of their money are unnecessary high. It should be reduced so as to enable these corporation to obtain funds from commercial banks.