PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA (A CRITICAL ASSESSMENT OF ITS POLITICISATION)


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PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA (A CRITICAL ASSESSMENT OF ITS POLITICISATION)  

TABLE OF CONTENT 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

1.2 STATEMENT OF PROBLEMS

1.3 OBJECTIVES OF THE STUDY

1.4 RESEARCH QUESTIONS

1.5 HYPOTHESIS

1.6 SCOPE OF THE STUDY AND LIMITATION OF STUDY

1.7 LIMITATIONS O F THE STUDY

1.8 SIGNIFICANCE OF THE STUDY

1.9 DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.1 ORIGIN AND EVOLUTION OF PUBLIC CORPORATION IN NIGERIA

2.2 REASONS FOR THE ESTABLISHMENT OF PUBLIC ENTERPRISES

2.3 RATIONALE FOR PRIVATIZATION AND COMMERCIALIZATION IN NIGERIA

2.4 PRIVATIZATION AND COMMERCIALIZATION PROGRAM IN NIGERIA

2.5 TECHNICAL COMMITTEE ON PRIVATIZATION AND COMMERCIALIZATION ACT OF (1988) (TCPC)

2.6 BUREAU FOR PUBLIC ENTERPRISES ACT OF 1993.

2.7 PUBLIC ENTERPRISES PRIVATIZATION AND COMMERCIALIZATION ACT 1999.

2.8 POLITICS OF PRIVATIZATION IN NIGERIA

2.9 PRIVATIZATION AND COMMERCIALIZATION EXERCISE FROM 1999 TO 2010

2.10 THEORETICAL FRAMEWORK

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 AREA OF THE STUDY

3.2 POPULATION OF STUDY

3.3 SAMPLE SIZE

3.4 SAMPLING TECHNIQUES

3.5 INSTRUMENT OF DATA COLLECTION

3.6 METHOD OF DATA ANALYSIS

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 DATA PRESENTATION

4.1.2 DATA ANALYSIS

4.2 DISCUSSION OF FINDINGS

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS

5.2 CONCLUSION

5.3 RECOMMENDATION

REFERENCES 

APPENDIX

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

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 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 program is numerous to include:

a. Corruption 

b. Lack of transparency

c. Lack of accountability

d. Inconsistency and

e. Incredibility.

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:-

1. What caused the evolution of the public enterprises in Nigeria?

2. What are the reasons why these public enterprises have to be sold despite the rationales for its establishment?

3. Can these corporations function well under the care of the state rather than being privatized whether wholly or partly?

4. 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?

5. Who are the main beneficiaries of the privatization and commercialization program?

1.5 HYPOTHESIS

a) Corruption is the cause of the poor performance of the public corporations

b) Good and transparent governance is the key to an efficient public enterprise

c) A well implemented privatization and commercialization programs boosts political economy of a country.

d) Politicization of privatization and commercialization of public enterprises will lead to theses enterprise inefficiency when sold out.

1.6 SCOPE OF THE STUDY AND LIMITATION OF STUDY

The scope of this research work focused strictly on those privatization and commercialization programs that have been embarked upon by Nigerian government from 1988 to 2010. This work will lead us to the evolution of public enterprises in Nigeria and also examine why they later turned out to be sold or privatized, partly or wholly. Finally, to analyze how politics been played by past administrations since 1988 towards this programme have ridicules this whole exercise.

1.7 LIMITATIONS O F THE STUDY

On the course of this research, the following problems were encountered, like short time frame. Financing problem, scarcity of information or data, etc. this is due to mainly, the wide scope of this study which emphasizes on a complex institution like Nigeria. The longer duration of the subject matter to study, which dates from 1988 to 2010 concerning privatization and commercialization program of public enterprises in Nigeria, also contributed. Now, the implication is that the short time frame mapped out for this research work posed a problem of assessing these programs as whole, but that doesn’t threat the authentication and quality of this work.

Again, enough financing of the accomplishment of this work became a problem in the sense that gathering information was costly, the researcher needed enough money to gather them.

1.8 SIGNIFICANCE OF THE STUDY

This research work will help the government and readers to understand those benefits that privatization and commercialization programme embodies which we have neglected and politicized with in the past. In understanding this on the side of the government, it will allow them to rethink and work towards real implementation of it thereby creating a room for the rapid growth and development of this country. At the other hand, it will go a long way to create an avenue for more academic research.

Haven known this, it is worthy to conclude that the main beneficiaries of this study lies on the government and other readers respectively.

1.9 DEFINITION OF TERMS

Public Corporations: Public corporation or enterprise as defined by Adamolekun (1983), are organizations that emerged as a result of government acting in the capacity of an entrepreneur. They can be seen as those corporations or enterprise built, owned and managed by the government. They are being financed with public fund, especially through taxation and also operate on monopoly.

PRIVATIZATION: Privatization can be defined as the transfer of ownership and control of enterprises from the state to the private sector. Iheme, (1997) defines privatization as any of a variety of measurers adopted by government to expose a public enterprise to competition or to bring in private ownership or control or management into a public enterprises and accordingly to reduce the usual weight of public ownership or control or management.

Commercialization: Commercialization is act of making government owned enterprises profit oriented. Commercialization can be full or partial according to the Bureau of public enterprises Act of 1993. In both full and partial commercialization, no divestment of the federal Governments shareholding will be involved and subject to the general regulatory powers of the federal Government.

Capitalism: Capitalism means the economic system in which property is privately owned and goods are privately produced. It is some times referred to as the private enterprise system. It is the private ownership of the business of a society with the freedom of private owners to use, buy and sell their property or services on the market at voluntarily agreed prices and terns, with only minimal interference with such transactions by the state or other authoritative third parties.

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