Effect Of Government Regulations On Business Enterprises

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Business do not operate without laws and regulations. These laws modify business structure and operations. In effect, the government on time the policies, rules and procedures and the industry respond to them. Government regulations on business enterprises in Nigeria are not new, it started during the colomial period continued later independence and gathered momentum (increasing) in the late (1960’s and early 1970’s. by 1979, it has become necessary to extend the regulatory power of government in 1983 specifies as follows regarding our national economic objectives.
1. The state shall within the context of ideas and objectives for which provision are made in the constitution.
a. Control the national economy in such manner and happiness of every citizen on the basis of social justice and equality of state and opportunity.
b. Without prejudice (unreasonable) to the right of any person to participate in areas of the economy within the major sectors of the economically protect the right of every citizen who engage in any economic activity outside the major sector of the economy.
2. A body shall be srt up by the federal minister government which shall have power.
a. To review from time to time ownership and control of business enterprise. Operation in and make recommendation to the government were necessary.
b. To administer any law for regulation of the ownership and contrary of such enterprise.
It is obvious from the fore-going that the provisions of the 1979 (constitution protect and represent the interest of the society, it influence on business activities in mainly comfirmed to regulated through acts and decree of business practices. The aim and above provision is to protect consumers from abuse and ensure efficiency in the use if resources, promote equitable distribution of income and prevent the economy from being dominated by non-indigene of Nigeria.
The most dynamic of all government policies within the economy’s fifty one years (51) of independent ranging it different government ranging from six (6) months to nine years which brought about nature changes in policies affecting the operation of business enterprise.
The government policies which may be either minatory or fiscal in nature, clearly influence the ability of business to prosper and survive in recent times economists had been educated for variety of government economic programmed. Monetarist for instance urged the government to make stabilization if may supply a major economic goal. Which ever philosophy is correct to the poi nt remains vividly that the impact of government economic policies on business enterprises if fundamental.
Another means of government influence on business activities is through government competition, government ownership and partial ownership.
3. Such as the Nigeria airways and Nigeria Port authorities are examples of the phenomenon.
Similarly, government can select loan and modified policies which they can empty to either encourage or discourage enterprise development such policies may include tax credits, excise duties and so on, these can be carried or lifted in other to either attract or throw out investment. Government import restrictions and tariffs also serve to protect domestic producers against unifit foreign competition.
However, government through subsidization and taxation influences business activities. The purpose of this is to assist business to survive and prosper.

1.1.1 HISTORICAL BACKGROUND OF MASTERS ENERGY OIL AND GAS.
Masters energy and gas ltd is an indigenous petroleum product marketing company established in Nigeria in 2005. The company is licensed by the department of petroleum resources to engage in the trading of petroleum products, and other services.
With a vision to be world’s bench mark in the oil and gas industry the company unviled excellent world-class services to their stake-holders and Nigerian which transformed it to a major inporter and distributor of petroleum within 365 days of operation.
Masters energy oil and gas limited has a hanlage division with over 100 trucks in its fleet all traversing the length and breath of Nigerian delivery products to its customers. The company has retail outlets, predominately side in the south East contributing to availability and affordability of petroleum products to Nigerians. The head office is at 21 Remi Fami Kinyodo Road GRA Ikeja.

1.2 STATEMENT OF THE PROBLEM
Business and industries operate in a large web of regulatory environment. Therefore, no business organization can escape being affected by government regulation either directly or through the agency of laws and regulation. The high lists of crude oil have negatively affected the industry.
They cannot meet up with their production target due to lack of law material needed for production. As such, it reduces the demand for their products. And so, the profitability of the company is also affected as a result of this.

1.3 OBJECTIVES OF THE STUDY
The objective of this study is
1. What are the methods used by government to regulate business with particular reference to masters energy oil and gas ltd.
2. What are the effects of the regulations on the management of masters energy oil and gas ltd.
3. How best can these regulatory activities be carried out in the public sector?

1.4 RESEARCH QUESTION
In other to determine the effect of government regulation on business enterprises. It is necessary to raise the following research questions.
1. Can government regulation on raw material ensure efficiency in the use of resources or present equitable distribution of income and prevent the economy from being dominated by non-indigenes of Nigeria?
2. Can government polices which may be monetary of fiscal in nature, clearly influence the ability of the business to prosper and survive?

1.5 SIGNIFICANCE OF THE STUDY
Business enterprises have been heavily criticized for discriminatory rates and policies. These have a strong trend towards the concentration of economic power in the hand of all kinds of processing and manufacturing industries. Through agreements to divide territories to fix prices and to combine huge aggregate capital through trust and cooperate mergers. Government has therefore taken hold steps in the form of regulations to arrest the situation.
Nevertheless, this study is significant in the following way; to the government. The recommendation of this study will help the government to know the good and bad effect of this policies on industries.
To business enterprise; In significant to business enterprises helps to identify some constraints imposed to government regulations on business objectives. This study also leads to the growth and knowledge on the part at the researcher because of what she encounter and discovers during the time of research.
It is also important to master energy workers to enable them to know the effect of government regulations on industries. This study is also significant to the general public by making the study society at large to know the advantages and disadvantages of government regulation on business enterprises.

1.6 SCOPE OF THE STUDY
The topic of this study being “the effects of Government regulations on Business enterprises is supposed to include all kinds of business enterprise both private and public, however, in order to enable the researcher keep the study within intensive manageable proportion, the study will be restrided to the effect of government regulation on masters energy oil and gas ltd.

1.7 LIMITATION OF THE STUDY
The limitation of this study will be encountered in the collection of data because many factors such as financial impediments and the problem of balancing the time of the study with other academic programmes have been identify;
Moreso, the time limit allocated to this study will not be enough for the researcher to gather all the needed information for the study. And enough effort will be made to minimize these limitations.

1.8 DEFINITION OF TERMS
For the purpose of this study and for avoidance ambignity regulations, taxation, value added tax, (VAT) and fiscal policies are defined;
Business
This is the totality of the organized effort and procedures involved in providing people with goods and service for a profit making. In other words, it is only activity in which goals are produced or services are rendered for the main purpose of making profit.
Enterprise
This is a system of business, especially one in a particular country.
Business enterprise
This is an organization establish by private individuals or entrepreneurs with the motive of making profit.
Government
This is an agency or machinery through which the will of the state is formulated, expressed and realized. It consists of body of people elected or appointed to manage, direct and control the public affairs of the state.
Regulation
This is the controlling of an activity or process usually by means, rule or order having the force of laws.
Government regulation
This is a means where by government controls the activity or process of the organization, usually by means of rule or order.
Taxation
This is a mandatory level made by government of a state or country on person’s individuals and companies for which government offer no services or explanation.
Value added tax (VAT)
This is a tax charge and payable on goods or services.
Fiscal policy
This is a deliberate manipulation of government expenditure, taxation and public borrowings in order to achieve certain national economic objective.