PRIVATIZATION AS A VIABLE TOOL FOR ECONOMIC DEVELOPMENT IN NIGERIA (A CASE STUDY OF M.T.N IN ILORIN)
TABLE OF CONTENTS
1.0 Statement introduction
1.1 Background of the study
1.2 Statement of problem
1.3 Aims and Objectives of study
1.4 Significance of study
1.5 Scope and study
1.6 Limitation of study
1.7 Statement of study
1.8 Research method
1.9 Plan of study
1.10 Definition of the terms
2.0 Literature Review
2.1 Concept of Privatization
2.2 Benefit of Privatization
2.3 Privatization and Economic
2.4 Problem of Privatization
3.0 Research Design
3.1 Method of data collection
3.3 Nature of data Analysis
3.4 Questionnaire Administration
3.5 Test of hypothesis
4.0 Data Presentation and Analysis
4.1 Data Presentation
4.2 Data Analysis
4.3 Summary of Findings
5.0 Summary Conclusion and Recommendations
5.1 Summary of Findings
5.4 Suggestions for further studies
The idea of privatization dates back to the position articulated by the classical economist who assumed that there exists unerring pendulum that always tend towards equilibrium as the interaction of the market forces; demand and supply are believed to be capable of regulating the economy.
The move towards economic development has been the key aim of the Nigeria government since independent. However, the methodology of attending this rapid structural growth and development has been a problem to this extent, Nigeria since independence has been adopting different tactics towards development but, the implementation has been a problem. Besides, the use of state power, authority and resorts as to promote the economic well being of individuals and groups in society was introduce by the government.
All over the word, the public service as a matter of fact, here not been known for the capacity to create wealth. Meanwhile public enterprises have usually been perceived as drain pipes for government budgets, this creating budgeting constraints and avoidable burden on the economy.
Attention which has been focused on the poor service delivery and inefficiency, financial waste and poor management and other sundry problems have cause irreparable damage to workers and organization goal of efficiency and effectiveness. It becomes a national policy sector from the areas where the private sector has the comparable advantage to perform, while letting the data concern itself with the provision of infrastructure, thrive through enhanced wealth creation.
In the case of Kwara state, the issue of mismanagement and under utilization which led to hugs waste of resources and man power potentials pave the government of the day number. Other option but, to pursue quickly the privatization programme privatization is an economic policy, which entails the transfer of ownership or control of public enterprises into private hand via government divestment and sales of shares.
However, this involves the private participation in the management and operation of public enterprises.
Privatization is the vehicle for restructuring public enterprises, deregulation and major economy reforms. It attracts foreign capitals through core foreign investors, foreign equity participation and injection of new technology
Privatization aims to achieve efficiently, increase productivity and economic growth, which will enhance for capital income and standard of living. The private sector in Nigeria has developed sufficiency known.
How to be able to take care of investment, financial and capital market are also sufficiency developed to be able to play the role of expected of them. The predominant argument about privatization is on doing things which private operators should concentrate on doing things which and monetary policies. Another side of the argument is the need to inject additional funds into the economy from non government source. There is need for government to face the problem of dwindling foreign exchange reserves and heavy external debt. The fear should be erased from their mind because privatization has the effect of changing the raise of employment opportunities and also can bridge the gaps between the rich and poor. One of the public enterprises with government 100% equity stated from full privatization is the Nigeria M.T.N limited
1.1 BACKGROUND OF THE STUDY
Nigeria M.T.N sector has gone through metamorphosis since the colonial era M.T.N facilities in Nigeria were first established in 1880 by the colonial administration and these were geared towards discharging their administration function rather than provision of socio-economic development of the country.
As at independent in 1920, the total number of telephone lines was only 18,724. for a population estimated at about 40 million people.
This translated to a teledensity of about 0.5 telephone lines per 100 people. The telephone network consists of 121 exchange automated between 1960 and 1985. The M.T.N (P&T), where as P&T provided the internal network service, the national external M.T.N (NET) provided the external services. The installed switching capacity at the end of 1985 was about 260,000 lives as against the planned target of about 460,000 lines, and all the exchanges were analogue.
Telephone penetration remained poor at one telephone lines to 440 inhabitants recommended by the Internal and Telephone Union (I T U). for developing countries, congested and customer unfriendly, as a result of these, in January 1985, the east while P&T and Net were merged to form Nigeria M.T.N limited (NITEL), while a postal division was carried out and reconstituted into the Nigeria postal service (NIPOST). There has been a modest development in the M.T.N industry since the inception of NITEL 1985 with a public network of about 800,000 lines capacity as at date. In 1992, the M.T. created new entrants into the market as private telecommunication operations (PTO), their company such as multi links, and interconnectivity agreement with NITEL. A new down has just set in with licensing of MTN, ECONET, GLOBACOM and NITEL as providers of Global system of mobile (GSM) communications in January 2001. While the GLOBACOM launched their own services in April 2003.
With the deregulation of telecommunication sector by Nigeria the country has therefore with massed increased activity in the sector. The sector has proven to be a catalyst for the growth and development of other sector of the economy. However, the deregulation is only a prelude eventual privatization of the state owned NITEL.
1.2 STATEMENT OF PROBLEM
This research finding is aimed at diagnosing the problem where in the public enterprises which precipitated privatization. There is also the need to evaluate the current privatization exercise of Nigeria MTN limited as a result of the ineffectiveness of the sector to provide a better and satisfactory service for the subscribes. This will be done with the view of determined how effective the exercise is in the MTN industry in terms of being the catalyst of industrial and economic development of any nation.
1.3 OBJECTIVES OF STUDY
The main objectives of study include the following;
i To strategically examine the effectiveness and efficiency of the MTN Company in the face of privatization exercise in Nigeria.
ii To see how policies put in place by the government would enhance effectiveness of the privatization exercise.
iii To examine how efficient and effective the MTN Company is after the privatization exercise.
1.4 SIGNIFICANT OF THE STUDY
Privatization has assumed a global trandard it is necessary to be abreast with the economic development across the world and in particular within the Nigeria economic.
As earlier mentioned MTN is a catalyst of industrial and economic development of any nation. The sector has witnessed tremendous changes and competition in recent times. Therefore, there is need, the explore the potentials as well as us undertake a sheep look into how efficient and effective the privatization exercise in Nigeria MTN section is order to make meaning contribution. Suggestion and recommendation for the improvement and successful fully privatization policy in Nigeria and in the MTN Company in particular.
1.5 SCOPE OF THE STUDY
This research work will be exhaustive, fact finding entails objectives analysis of the public enterprises performance with particular reference to MTN section. The research will cover wider aspect in decision making relating to:
i The strategies being adopted by the privatization policy of MTN plc in their bid for greater development effectives services delivery.
ii The object of privatization policy as well as the development process.
1.6 LIMITATION OF THE STUDY
The problem which will hinder the smooth process of this write-up may include the following:-
i Timely retires of questionnaire by the respondent.
ii The higher cost that will be involved in carrying out the project.
iii The sensitive nature of the topic may make the respondent unwilling to provide the required data.
iv The interview problem, some those whom the researcher may not able to interview due to the fact that they were so busy or clear avoiding the interview to the feat of feat of possible reappraised from management.
1.7 RESEARCH PLAN OF THE STUDY
This research work amongst other things aimed at studying and evaluating privatization, as a viable tool for development of Nigeria economy with particular reference to MTN.
This study will spring up five chapters:
Chapter one will comprise the general description of the study; introduction of the topic; background of the study, statement of problem, purpose of study, signification of the research, scope, limitation of the research, plan of the study and definitions of the terms used.
Chapter two will be based on the literature review under the write up of various scholars and writers on privatization with the experienced of Nigeria MTN and the benefits and problem of privatization.
Chapter three will take a look at the research method, historical background of the case study, statement of hypothesis population and sample size of study, method of data collection, analysis and testing hypothesis.
Chapter four, the research instrument data analysis will be defined and the testing hypothesis taken place with research findings. Chapter five will be the summary of the entire project work, conclusions and recommendations.
1.8 DEFINITIONS OF THEB TERMS USED
i Privatization: Means any corporation board company or parastatals established by or under any enactment in which the federal government or it agency in enterprises whether wholly or permanently owned by the private hand to manage.
ii Enterprises: Means any of its departmental ministry or agencies has ownership or equity interest and shall include a partnership joint venture or any other form of business arrangement.
iii Commercialization: Means the re-organization of enterprises wholly or partly owned by the federal government in which such commercialized enterprises shall operate as profit-making commercial ventures and without subventions from the federal government.
iv Full privatization: Means the disinvestment by the federal government of all its ordinary shareholding in the designated enterprises.
v Partial privatization: Means the disinvestments by federal government of all its ordinary shareholder in the designated enterprises.
vi Subvention: Means subsidy given to certain services oriented parastals from government.
vii Infrastructure: Amenities available for public and institutional for technical committee on privatization and commercialization.
viii Installation: The provision of services to the user’s end.
ix TCTC: Is the acronym for technical committee on privatization and commercialization.
x Subscriber’s: Telephone users
xi Teledonsity: Telephone penetration rate.
xii Analogue: Telephone system electro-magnetic based.
xiii Digital: Telephone system computer based.
xiv Interconnectivity: System of linking one exchange to another to facilitate connecting of subscribers.
xv Deregulation: Removal of restrictions or regulations on business entry.
xvi Competition: Enabling environment for interplay of marketing forces of demand and supply.
xvii Innovation: Diversification and improvement of varistics.
xviii Exchange: The whole equipment which enables switching operation.
xix Switching: Linkage the originating cells to the desired destination..