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This write up is of the opinion that government owned companies in Nigeria has become burden to the government. They depend solely on the government for subventions or grants privatization as one instrument of SAP will be used to achieve economic efficiency in Nigeria. The aim of the study is to find out why government owned companies and parastatals that were initially established along commercial lines not only that they enjoy high subventions from the body that set them up and have performed below their counterparts in the private sector. The research work is based on both primary and secondary data. The data is the administration of questionnaires, journals, newspapers and books. The statistical tools used in testing the hypothesis is chi-square. It is the belief of the researcher that the findings and recommendation would be of invaluable help to the government owned enterprises which constitute most part of the public sector of the economy. The research study made some intershaped findings which revealed through analysis of data randomly administered to both public and private enterprises in Enugu State. It is recommended as a result of this research that there should be modalities for debt equity swap. This will bring managerial skill as well as new capital facilities. Also foreign investors should be encourage to invest in Nigeria when the government has created a conducive investment atmosphere for them to operate. Finally the attraction of technical and administrative known how that may be available in our country. In country, if all these are achieved, Nigeria will move towards economic development.


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