1.1 BACKGROUND OF THE STUDY
In a country with mixed economy like Nigeria, the government and the individual are managing the economy together. This means that people, groups and the three levels of government are free to start businesses. The three lowest levels of government include the local government, the state and the federal government, respectively. In the modern world, mixed economy appears as the most widespread economic system, but what makes the difference is the degree of mixing.
As a result, the government has important roles to play in this type of economy. Given the importance of government commercial regulation in the country, its regulatory power over commercial activities was defined in Article 16 (1) and (s) of the Federal Constitution of 1979. 1984 also, the first was modified by the government Federal military of the time. This amendment was also included in sections 16 (1) and (3) of the 1999 Constitution of the Federal Republic of Nigeria. And both constitutions have specified the following with respect to our national economic activities.
Section 16 (1) states that the state must, within the framework of the ideal and the objectives of this Constitution, control the national economy to ensure maximum welfare, freedom and freedom. Energy citizen on the basis of social justice and fairness of status and opportunity. Without prejudice to their right to operate or participate in areas of the economy that are not the main sectors of the economy.
Subsection 4 of Section 16 defines the main section as activities directly related to the production, distribution and exchange of wealth or goods and services. These main sectors of the economy will be declared periodically by a resolution of each Chamber of the National Assembly administered and administered exclusively by the Government of the Federation.
Without prejudices to its right to operate or participate in areas of the economy, to manage and operate the major section of the economy.
Moreover, according to section 16 (3); a body shall be set up by an act of the National Assembly which shall have power to review from time to time the ownership and control of business enterprise operating in Nigeria and make recommendation it some and to administer any law for the regulation of the ownership and control of such enterprise.
Therefore, it is clear that the role of government is to protect and represent the interest of the society and the citizenry in which business operates. It can be further said that government through policies protects consumers from abuse, they ensure efficiency in the use of resources and promote equitable distribution of income.
Government policies are the most dynamic of all government influence on business in Nigeria. This is due to instability in Government of Nigeria and has contributed to massive change in policies affecting the operation of business.
These policies may include monetary or fiscal policies. Fiscal policies which is a macro-economic tool that involves the use of government spending and taxes (T) in guiding the nation’s economy to achieve pre-determined economic good. Monetary policy on the other hand is the regulation of money and the terms and availability of credit. Government can regulation of business activities.
Conclusively, government can use other means such as import duties and tariffs to regulates business in Nigeria, in order to protect domestic industries and producers against foreign competition. This study is therefore carried out to examine government policies as a tool for creating a business environment.