This study is designed to assess the challenges to effective performance of government owned business concerns in Nigeria EEDC Owerri as a case study. The study was necessitated owing to the fact that performance of government own business in Nigeria is not up to the standard expected of them by the public which they are meant to serve owing, and majority to the poor, management of the business. However, the government owned business will regain public confidence if it goes back to set its priorities right adopt some progressive management techniques, including the practice of management by objective. The study adopted a survey method which enable primary and secondary data source. The result at this study show that the lack of integrity and commitment among government appointed manager which resulted to carefree attitude towards expenditure increment, utilization of available resources which are the sole determination of profitability can be re-adjusted by the way of promoting and providing initial capital and immediately contract out the management of such establishment to competent indigenous consultants who have the professional qualifications and capabilities for such job. And every form of quota system in employment should be eradicated. Proper attention should be given to the performance of government owned business concerns in Nigeria to avoid waste of the limited available resources and loss of public confidence which may adversely affect the economy.

CHAPTER ONE: INTRODUCTION

1.0 INTRODUCTION
There are various kinds of opinions by many scholars on activities of privatization commercialization of public enterprise the federal government to the privatization programme saying that it would not allow obstacles to make it change its focus.

1.1 BACKGROUND OF THE STUDY
A government owned corporation, also known as state owned company, state enterprise. Public owned, corporation or commercial government agency is a legal entity created by a government to undertake commercial activities on behalf of the government. In some cases, government owned corporations are directly controlled by it in other instances. Government owned corporation is similar to private enterprises except that the government is the majority stock holder.
Government owned agencies sometimes have public’s functions but unlike other executive agencies, are primarily intended to bring in revenue. Apart from providing the basic infrastructure, government invests in these companies with the hope that they would be self financing and expand rapidly in such a way that they would create employment opportunities for the teaming unemployed.
It expects that they would contribute substantially to the cross national product, socio economic development and modernization by developing abilities of the indigenous.
However, available records shows that returns on investment have been extremely poor, according to big time Federal government investment in 150 companies and corporation yielded leads than one percent by way if divided, bonus issues, loans payment and interest payment. They therefore, constitute fiscal and financial burdens on the various governments. Presently, most government owned companies do not pay taxes, most of their investment cost are covered by capital transfer most cases their cash surprises is less than their depreciation an in some instances, cash flow does not even cover running costs.
At managerial and operative performance level the problem is also a general, these companies generally have generated little and this had led to stunted growth, which have been limited by the extent of the availability in worst situation some of these companies have led various governments into huge losses of capital investment (capital depreciation) or government budgets and substantial sources of external debts.
In spite of all these, the most disturbing aspect of these dying and suffering companies are sold to the private entrepreneur they begin to turn out enviable profit.
To Pendy (1997) the major determining factor of the effectiveness and efficiency of enterprises is not whether it publicity or privately owned but how it is managed.
Hence the study will look onto the factor that led to poor performance of EEDC companies in Nigeria. Suggest solution to the problems and make recommendations on the appropriate ways of improving their performance.

1.2 STATEMENT OF THE PROBLEM

1. What attract a lot of attention and general comments in several quarters, both from the government and the governed, the private and the public sectors of EEDC Owerri?
2. What are the general ideas far and wide in these enterprises concerning in EEDC Owerri?
3. What are the comments both in positive and adverse that are needed in EEDC Owerri?
4. What are the requirements needed for proper management for its functioning in EEDC Owerri?
5. What are the goals set out for each expected welfare services, revenue in EEDC Owerri?
6. What are these enterprises being established by government concerned in EEDC Owerri?

1.3 OBJECTIVE OF THE STUDY
From the statement of the problem, the research work is meant to achieve the following objective.

1. To examine the nature and issues of EEDC Owerri
2. To find out the problem facing public enterprise especially the EEDC Owerri
3. Another objective is to look for strong measures which if adopted of EEDC Owerri and also to make recommendation where necessary.

1.4 RESEARCH QUESTIONS

1. What is the nature of the problem existing in government owned business in EEDC Owerri.
2. What are the strength, weakness of such organization in EEDC Owerri.
3. Does the type of management structure have effects on the operation of the EEDC Owerri?
4. Are there ways of improving or strengthening the operation of the EEDC Owerri?
5. Are there any benefits in having a government owned company i.e. EEDC?

1.5 SCOPE OF THE STUDY
The study covers the issues of publics’ enterprises. The basic problem with public enterprises in Nigeria and problem associated specifically with the management of EEDC for convenience.

1.6 SIGNIFICANCE OF THE STUDY

1. The study will be of benefit to a whole lot of managers policy formulation, policy makers and executors, al of those that runs the affaires of government or public business and future researchers on the management of organization. Particularly government or state owned ones.
2. The study would help to make public manager or intending young public manager more knowledge and informed on how best to achieve high performance and sound manufacturer in public enterprise.
3. The research work is important in that it would bring to lime light, the contributory factors to the problem management in public enterprises, the environment and the people that the enterprise are meant to serve.
4. The work will also serve as a source of literature for students and research who may want to carry out further researches on similar or related issue or topic.

1.7 LIMITATION OF THE STUDY
In the course of this study the researcher, encountered some unavoidable constraints. These constraints placed some limitations including as the work should have at least one year to accomplish rather than few month within which the researcher work.
Further more, the irrelevant economic crunch and the attendant financial and mobility constrains played another devastating role in pretending the research to use contain approaches and method in the course of this study.

1.8 DEFINITION OF TERMS
In this definition of terms there are things we need to know as follows:

1. EEDC
2. Government owned business
3. Enterprises

EEDC: Enugu Electricity Distribution Company
Government owned business: Government owned corporation, state owned company, state owned entity, state enterprise, Public owned corporation government business enterprise, commercial government agency. Public sector undertaking or parastal is a legal entity created by a government to undertake commercial activities on behalf of a owner government.
Enterprise: An enterprise is a business organization in the computer the term is often used to describe any large organization that utilizes computer.