Low Productivity In Our Public Organizations And Its Effect On The Economy

Low Productivity In Our Public Organizations And Its Effect On The Economy

Low Productivity In Our Public Organizations And Its Effect On The Economy

The term low productivity refers to the inability of our public organization to produce up to installed capacity. It is when the organization produces up to installed capacity or something nearer that one can say that such organization is doing well.

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Nigeria is blessed with fiscal and human resources necessary for industrial development and buoyant economy. It has a large and e3xpanding consumption market as well as an emerging and aggressive group capable of exploiting opportunitie4is in both domestic and foreign market.

The growth of the manufacturing sectors was rapid in the early sixties and seventies. For instance the growth was 11% between 1962 and 1966 and 10% between 1970 and 1973. it share of grass national product however increased by only 2.15% between 1962 and 1972 partly because of the predominance of the mining and oil sector.

Nigeria the 6th world producers of oil and the first in Africa still import fuel from other countries. An average Nigerian is now used to the crises. In crisis is no longer news in our country and still we have four refineries.

This seemingly unstoppable low productivity in our public organization have had an adverse effect in our national economy, for instance we are the greatest producer in Africa. This scarce foreign reserve is what we could have used in importing other goods that are scarce here in our country.

The low productivity in our public organization have made our development plans to returned up side down and had equally put our economy in a doldrums.

A country richness is measured by the amount it has in its foreign reserve, our economy have been stagnant for sometime now partly because of our wasteful nature.

We establish organization without first of all planning very well, so that we would have taken all constraints that will militant against full production. E.g. Raw material into consideration.


Low productivity in our public organization dominates discussion in many circles in Nigeria today. Public organizations have continued to witness increase low productivity in recent time. It was reported by Nigeria economic society and manufacturers association of Nigeria that public organizations lost between N5-N10 billion naira between 1985-1990.

In 1994 about N460.3 million was lost by public organization due to low productivity while 1995 with easel the loss of about n502.8 million by these organization due to the same problem showing an increase of about N42.3 million. While these organization are busy working out means of increasing to productivity, the problems continue to increase unable it will be pointed out here that the results or implications of these are damaging. Low productivity leads to unnecessary lost of huge amount of money. These losses of money by these organizations cripple the economy of the nation. Again every incidence of low productivity reduces public confidence on public organization.

Furthermore, the low productivity in public organizations delays or blows down the industrial development in this country. People shy away from investing their money in their companies for fear of low return of investment.

It is therefore, the adverse position, low productivity in public organizations places in our economy that crops up this project.


In view of the above mentioned problems, it becomes obvious that if nothing positive is do to check these incidence of low productivity, it could load to unpleasant consequences on the economy.

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The objective of these research work are therefore to carry out survey and investigation on this canker worm that has eaten deep on our public organization. The study will also determine the causes and the basic factors that are raised to low productivity in our public organization.

The objectives of the study will also be concerned with looking into possible effects of low productivity on the operation of the economy.

Furthermore, to examine the various management and government devices geared towards eliminating or controlling low productivity.

Finally, to present recommendation or solutions that may help in reducing or eliminating low productivity.


Low productivity in our public organization like canker worm has eaten deep into the fabrics of our various industries. In view of that, effort has been made in this research work and all avenues exploited so as to proffer solution on reduction of low productivity.

More importantly public organization in Nigeria will derive great assistance from the work in finding solution to the low production problem facing them. This they can do by adopting and implementing the various suggestions and recommending the various suggestions and recommendations made in the study.

The research will also be more important to those students carrying out our research on how productivity in government establishment. Government will equally benefit from this work.

Therefore, this research will be for mutual benefit of managers, shareholders, students, government and general public whose confidence on public organization will once be restored.


This research work met a lot of difficulties first and foremost, most visited were reluctant in given out statistical data on low productivity being experienced by the organization. None of these establishment denied producing below installed capacity, but they refused to let such vital information out. According to them, such piece of information is not for external consumption.

Secondly, that any attempt to disclose the official data will not be taken kindly by the government.

Thirdly, that any attempt to disclose the official data will not be taken kindly by the organization towards that person.

With the above definition, the researchers find it very hard not to concentrate on theoretical analysis of low productivity in public organization.

Another problem encountered in the cause of gathering data for this research is the high cost of materials and transportation accessioned by high inflation and fuel scarcity in the country. The scope of the research is limited to the study of some selected companies in Enugu state which are just few of many public organizations.

The study was to be limited to these organizations due to time and cost constraints.



The issue of low productivity in our public organizations has become a serious food for thought for many people in recent time. As a result more time is spent on board meeting in an attempt to find solutions to the persistent problem. It is worthy of not, that while much has been said and written about low productivity, its effects are incre4asing daily. Based on this the researcher laid hands in some comprehensible and commendable write ups on the subject matter.

It is pertinent to note that low productivity in public organizations is a worrisome development. Low productivity means not producing up to installed capacity. The primary objective of setting up these public organizations is for them to help in alleviating the unemployment problem in the society, render services to the people and make profit to the government. It is no secret that most public organizations have not tried up to expectations of both government and people. These organizations have not justified the huge amount of money government spend in establishment on them.

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The amount of money which the government is loosing annually due to low productivity is enormous. In daily time which I red recently is said that a renounced social economist poi ted out that Nigeria lost about N56 in 1995 alone due to low productivity in some of our companies. He pointed out that the figure may increase if nothing is done to stop the trend of events in our organizations.

Having defined low productivity, it will then become appropriate to determine the causes of this problem that seen to have defiled all solutions.

Alhaji Usman E. Bello an economist with NAL Merchant Bank on the occasion of the 18th yearly seminar of Nigerian institute of Bankers held in Kano in 1986 identified two major causes of low capacity utilization in our public organizations.

1. Poor Infrastructural Development: He sid, the necessary infrastructural facilities are inadequate in Nigeria and pointed out that this poor infrastructure development hinders high production.

2. Inadequate Skilled Man Power: He pointed out that there is shortage of highly skilled professionals in some of these skilled man power leads to the use of expatriate hands whose short run and long rune effects on our economy are better imagined than experienced.

Another reason put forward by experts is low capitalizations. They said that many of our public organizations are poorly capitalized. This has resulted in some of them not being able to meet some of their financial obligations. With this, it is clear that the strategy adopted in their establishment substitution requires the importation of machines parts for production.


The consequences of low productivity in our public organizations are grave, to this, and this section shall concentrate on the consequences of low productivity on the economy.

The Effect Of Low Productivity In Our Public Organizations Are As Follows:
1. Unwarranted Losses: Low productivity or capacity utilization of our public organization lead to unwarranted losses for this establishment and the economy as a whole. Large sum of money that could have accrued to the government is cost due to this problems.

2. Waste of Scarce Foreign Reserve: Foreign reserves that could have been used to importing certain goods and services that we cannot produced now are being used in importing goods that we can easily produce here e.g. Oil.

3. Loss of Confidence: The public has cost confidence in these organizations. Instead of placing orders for the supply of goods, with them, they prefer doing that abroad, thereby dening our economy the money that could have accrued to it.


In this aspect, the following measures could help in minimizing low productivity in our economy or public organizations.

i. Enhanced capitalization of public organization will increased capitalization of our public organizations, they will be able to produce the necessary equipments for the production.

ii. We should keep pace with what is happening in the technological world. That is being able to install modern equipments in our public organizations. This will enable them to perform better.

iii. Maintenance culture: We should be able to cultivate maintenance culture in our public organizations. This measure will go a long way solving the low productivity being experienced in our public organizations today.

iv. Privatization/commercialization: Privatization/Commercialization of some of our public organizations, if not all will go a long way reducing poor productivity in our public organizations. This is because some people are seeing government as nobody’s business. But if these organizations are privatized and commercialized, everybody will sit up knowing full well that this continued stay in such establishment depends return on investment, which the shareholders get at the end of every financial year.

v. Adequate finance: Our public organizations should be funded adequately to enable them procure the necessary inputs for its production and to meet other financial obligations.

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Research design means specialization of procedures for collecting and analyzing data necessary for the definition and solution of research problems. The researcher employed various methods and procedures to achieve the objective of the research. This methods used in the collection and analysis of data are outlined and how the use of these methods leads to the appropriate solution of he research work are also indicated.


Having explored and identified the causes of low productivity in our public sector, its effects or consequences in our economy, the various ways of preventing or controlling low productivity in our public organization makes the following recommendations with the hope that they could help in finding solution to the problem.

1. Privatization and commercialization: Government should privilege some of these public organizations so that individuals and corporate bodies can join hand in improving these companies.

2. Finding: It is my view that some of these public organizations are poorly funded and it is one of the reasons we pointed out earlier that is causing this low productivity in our public sectors. So that government should fund these organizations very well so as to be able to enhance its productivity.

3. Government in establishing Industries: Companies should try to establish those organs, which its raw materials can be sourced locally and those ones that are importing their raw materials now, should try and change their mind so that this raw material can be gotten locally. This can help in reducing the time and money it takes to impact these raw materials.

4. Government should ensure that these public organizations are properly supervised by their parent ministries with a view to ensuring that they are performing optimally.

5. Government should ensure that capable and experienced hands are employed to manage its public organizations.

6. Government should reduce some of he bureaucracy involved in these establishments obtaining necessary documents that will enable them import some of their raw materials.

7. Government should ensure that state of arts equipment are installed in these organization and also that some of the absolve equipment that are every where in our public organization are replaced wide more modern and enhanced equipment.

8. We should be updating the knowledge of people that are in charge and even other workers in our public organization in form of training so that they will be in tune with the latest technology as regards to the organization they are working with.


There is no doubt that low productivity in our public sector is given our header sleepless night. It is equally disturbing the general public, however if all hands are on desk and reasonable skill and diligence measures by all and sundry, lo productivity in our public organization can be reduced to the barren minimum.

Finally, I strongly believe that Inspite of all the various forms this low productivity in our public organization is taking, if supported by the citizens, low productivity of our public orgnaisation can be controlled. So every body .i.e. the people at corridors of power, management experts and the general public should wake up and carry or move to wage a final battle against low productivity in our public organization.

Low Productivity In Our Public Organizations And Its Effect On The Economy

To place an order for the Complete Project Material, pay N5,000 to

GTBank (Guaranty Trust Bank)
Account Name – Chudi-Oji Chukwuka
Account No – 0044157183

Then text the name of the Project topic, email address and your names to 08060565721.  

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