An Assessment of the Impact of Partial Commercialization on Financial Performance of Public Enterprises (State-Owned Enterprises) in Nigeria

Abstract

This study investigated the impact of partial commercialization on the financial performance of public enterprises (state- owned enterprises) in Nigeria. This study employed both expo factor research, and descriptive research designs. Population of this study is made up of all NTA stations in Nigeria as at 30th June, 2023. Secondary source of data is collected from the financial statements of the NTA covering a period of 2001 to 2021 financial years. This study used both descriptive and inferential analyses. The study found that partial commercialization has positive significant influence on the pattern of expenditures of NTA, The study equally finds that Share of Federal Accounts Allocation Committee (FAAC)-statutory has negative significant while Aid and grant has positive significant impact on interest earned by NTA and Finally, the study discovers that there is no significant relationship between both share of Federal Accounts Allocation Committee (FAAC)-statutory allocation, and Aid and grant on non-tax revenue generated by NTA in respect to financial performance, impliedly meaning there is no significant impact between the partial commercialization and non-tax revenue generated by NTA. The study therefore recommended that the government enhance its funding allocation for Aid and Grants by increasing the provision of television and studio equipment, transmitters, outside broadcasting vans, masts, and generators to the Nigerian Television Authority (NTA) and the analysis ultimately reveals that the establishment of additional NTA stations at the local level has resulted in the depletion of people and material resources within the organisation. Consequently, this has placed a greater strain on the management of NTA stations and has diminished their financial performance. As a result, the report suggests that in light of the digitization of NTA, the government should consider reducing the number of NTA stations to solely encompass state capitals and Abuja. This strategic move aims to effectively curtail the operational costs associated with managing 116 stations.