The rationale for the creation of government corporations. (Public Sector/Government Parastatals) is presumably the desire to attain some broad developmental goals and a range of economic objectives.

Over the past decades, the number and variety of public enterprises in developing countries have greatly expanded. 

But the overall performance of these enterprises has been rather very disappointing.

The Federal Government has been pumping large amount of terms of capital investment in various corporation for instance NEPA with the aim of realizing certain set objectives.

Inspite of all this effort by the government and some hardworking employees, the NEPA has suffered staggering losses thereby becoming a major drain on national and state government budgets and the principal source of heavy external debts.

However, the study is anchored on “systems model”. This is the principle of “Together we stand divided we fall”, ALL structures have to work harmoniously for the survival of the system. Taking into consideration between administrative inefficiency, Manpower shortage (skilled and unskilled labour), political interference, employment training, job satisfaction as independent variables and effectiveness as dependent variable will be verified as this will make the issue much more clear, this serves as the basis of the study.