Privatization and commercialization of public enterprises
1.1 BACKGROUND OF THE STUDY: Privatization and commercialization of public enterprises in Nigeria
Privatization and commercialization of public enterprises in Nigeria. In the era of post colonialism, Nigeria has at one time or another, embarked upon certain policies that have political economic implications. For instance, from 1960 to date, Nigeria has introduced indigenization and nationalization policy, operation feed the Nation (OFN), Austerity measure, structural adjustment programme (SAP), Deregulation of oil sector, Resource control Privatization and commercialization of public enterprises to mention but a few. The critical question here remains. How many of these policies have been able to restructure the political economy of Nigeria to the tune of alleviating the yearnings and aspirations of the working class.
The world no doubt is moving towards capitalization and any nation that is not moving towards this direction is seen as either not developing or even retrogressing. A capitalist economy is a free market economy which allows most economic decisions to be guided by the twin forces of demand and supply. Since capitalization discourages monopoly but encourages competitive market, it therefore enhances efficiency and high productivity which is very vital in any developing country’s economy. In Nigeria, most government owned industries and establishments remain citadels of corruption, studies in efficiency and consequently a heavy drain on the economy. As a means of curbing this menace, the Brettonwoods institutions (IMF & WORLD BANK) have advocated the twin policies of privatization and commercialization. Incidentally, Nigeria has fully adopted this policy and is embarking on it with frenzy
1.2 STATEMENT OF PROBLEMS : Privatization and commercialization of public enterprises in Nigeria
Privatization and commercialization of public enterprises is a vital tool for the upliftment of a country’s political economy, more especially the developing countries like Nigeria. Regrettably, the problems facing this privatization and commercialization of public enterprises in nigeria program is numerous to include:
- Lack of transparency
- Lack of accountability
- Inconsistency and
However, it is based on these problems that the basic propositions of this privatization and commercialization program are being hindered. In trying to look into these discrepancies and proffer a way forward towards a positive state of privatization and commercialization of public enterprises in Nigeria, this research work emanated.
1.3 OBJECTIVES OF THE STUDY
This paper will take a general look on the evolution of public enterprises in Nigeria, after and the rationale for its establishment. To assess the factors that led to the privatization and commercialization of these public co-operations and its origin. Thirdly, this work will also evaluate the various privatization and commercialization programs embarked by the Nigerian government from 1988 to 2010. Finally, it is the objective of this research work to fish out those problems that have obstructed the full propositions of privatization and commercialization program as it concern its implementation and as well proffer a way towards actualizing its objectives so as to foster political cum economic growth and development of this highly endowed country Nigeria.
1.4 RESEARCH QUESTIONS
This work will tend to ask some relevant questions like:-
- What caused the evolution of the Privatization of public enterprises in Nigeria?
- What are the reasons why these public enterprises have to be sold despite the rationales for its establishment?
- Can these corporations function well under the care of the state rather than being privatized whether wholly or partly?
- How far has this privatized enterprises gone in boosting efficiency and high productivity to benefiting Nigerians as a whole whether poor or rich, higher place or less privileged?
- Who are the main beneficiaries of the privatization and commercialization of public enterprises in Nigeria program?