THE IMPACT OF PRIVATIZATION ON NIGERIA MONEY MARKET
(A CASE STUDY OF THE CENTRAL BANK OF NIGERIA)
The researcher looked into the impact of privatization on Nigeria money market with the Central Bank of Nigeria as the case study. For the purpose of clarity, this project has been divided into five chapters.
Chapter one deals with the introductory part of the project, statement of problems, objective of the problems of the research.
Chapter two discussed the literature review. It went into analysis of the relevant materials, which are directly related to the project and equally those that are not directly related to it.
Chapter three went into the research design and methodology, source of data and the instruments in data collection.
Chapter four, emphasized on the analysis and presentation of data based on the questionnaire.
Chapter five which is the last chapter, discussed the summary of the work, finding and recommendation on the project work.
PROPOSAL
The main objective of this research is to evaluate and examine the impact of privatization on Nigeria money market.
This research will be tested in three different hypotheses. In testing of the hypotheses, the null hypothesis will be rejected while the alternative hypothesis will be accepted. This reviewed that there is a positive relationship between the money market and privatization programme. This method of data collection is the secondary data which makes use of the Central Bank of Nigeria Billion while the primary data is questionnaire from different financial institutions and investors.
Chapter one will give an overview of the research work. This chapter one will deal with the introduction, background of the study, statement of the problems, research questions, research hypothesis, significance of study, scope of the study, limitation of the study. It will also cover the definition of technical terms that will be employed in the work.
Chapter two will be a review of previous work of other people on related literatures and studies. Under this section, previous literatures on forms of privatization, the effect of privatization on the money market, the strategies for success, issues in public enterprises reform and how privatization has affected the Central Bank of Nigeria were going to be discussed.
In chapter three, the methodology that will be adopted for carrying out the research will be described. It will also highlight the sources of data, the research instruments and location of data.
Chapter four will show the actual presentation and analysis of the research information that will obtain. The results of the research findings will be present in understandable form and analysis.
Chapter five will be the summary of the findings, recommendations and conclusions that covered for an impact of privatization in Nigeria money market.
In fact the work will be an interesting one and will be of great help to its audience.
TABLE OF CONTENTS
CHAPTER ONE:
1.0Introduction
1.1 Background
1.2Research Objectives
1.3Statement of the problems
1.4Research questions
1.5Research hypothesis
1.6Significance of study
1.7Scope of study
1.8Limitations of study
1.9Organization of study
1.10Definition of terms
References
CHAPTER TWO:
2.0Review of Related Literature
2.1 Introduction
2.2Meaning of privatization
2.3Forms of privatization
2.4How privatization has affected the money market
2.5How privatization has affected the Central Bank of Nigeria
2.6Measures of enhancing the performance of public enterprises
2.7The strategies for success
2.8Benefit of the first phase of the public enterprise reform
Programme in Nigeria
2.9Issues in public enterprises reform
2.10(i) Privatization – operational conceptualization
2.10 (ii) The privatization programme – economic policy justification
2.11Privatization programme: The critique
2.11.1 Proper evaluation of affected public enterprises assets.
References
CHAPTER THREE:
3.0Research methodology and designs
3.1 Research instrument
3.2Data requirement and collection
3.3Sample size and sampling procedure
3.4Analysis of tools
References
CHAPTER FOUR:
4.0Data presentation and analysis
4.1 Introduction
4.2Analysis and presentation of finding
4.3Analysis of secondary data
4.4Test of hypothesis
4.5Interpretation of result
Summary
CHAPTER FIVE:
5.0Summary of findings
5.1 Discussion of findings
5.2Conclusion
5.3Recommendation
Bibliography
CHAPTER ONE
1.0INTRODUCTION:
The topic of this research paper is the impact of privatization on Nigeria money market. We will concentrate on the effect of the privatization on Nigeria money market. Undoubtedly, there are many organization ranging from government to the hand of individual. In this report, the establishment of statutory corporations and state owned companies are tools of public intervention.
There was also consideration arising from the dangers of leaving the care sector of the economy in the hands of government and large – foreign business organization considering these reasons and others, public enterprises was seen as crucial in Nigeria guest for the true national economic independence and reliance. The economic and financial analysis has never relented in the reminding of the worthy of the need to operate these government enterprises with reasonable efficiency. It was recognized as far back as 1950 which led to a situation where many of the public enterprises operated in some form of quasi commercial organization. Some of the reasons for this development include:
1.Government system of accounts is designed to facilitate close-expenditure control by the legislature and necessarily to promote operational efficiency.
2.The necessity to minimize political pressure and partisan influence in some sensitive social institutions in order to sustain confidence in their policies and programmes.
3.commercial undertakings lead to generate an atmosphere of initiative and release greater energy on the part of operational personnel.
4.It is being doubtful whether the private enterprises will sustain the magnitude of investment need in certain vital areas of development.
5.The normal government machines do not tend it to the speedy decisions so needed for commercial operations.
However, the situation on ground was that the real performance of the public enterprises in Nigeria have left much to be desired, many were not responsive to the changing requirements of a growing and dynamic economy and they did not possess the necessary tools for translating into reality the hope of successful commercial operations in this difficult condition faced by the public enterprises in Nigeria. The Central Bank of Nigeria (CBN) and the Nigeria Stock Exchange has used privatization and commercialization policy to encourage the growth of our economy and create an avenue for individual investor. Privatization has gained much more prominence than commercialization in Nigeria recent time. Proprietor of privatization in Nigeria have argued against the continued existence of government in the public enterprises because of the economically inefficient and wasteful of resources as well as domestic and foreign credit.
1.1 BACKGROUND OF THE STUDY:
Privatization has contributed greatly to the growth of Nigeria economy by regulating inefficient and unaccountability in resources distribution and control.
Furthermore, the criticism have being made against the background that as of today, inspite of the heavy public sector interaction and ownership of the enterprises, the vast majority of Nigerians are still going without access to the most basic infrastructure such as water, electricity, telephones etc. This has helped to bring the privatization policy as a notable option. Privatization has circulated into so many economic streamlets different degrees in different parts of the world, particularly in developing economics. The activities relating to the programme have been on the increase in recent times during early 1980’s for instance Structural Adjustment Programme (SAP) which was promoted by major international bilateral and multilateral agencies. During the administration of Babangida, it was heralded in the price decree of 1988 which the Abacha administration propagated and pursued and was restated to its commitment on October 1, 1998 by General Abubakar to the programme and government intention towards privatization on investments in telecommunication, electricity, petroleum refineries, petro-chemical and tourism and bitumen production. This is the first round of privatization during the past administration.
Secondly is the legal work of privatization which was put in place with promulgation of public enterprises (privatization and commercialization decree No. 28 of 1999 which provided for the full privatization of 25 or more public enterprises involved in oil, cement, banking, agro-allied, motor vehicles, assembly and hotel activities, and it also provide partial privatization of 37 enterprises in sectors ranging from telecommunication to sager manufacturing under full privatization, the government share holding would become zero, while at the partial privatization would be maximum of 35% to 40% in any case the core investors are expected to hold the maximum of 40% while a minimum of 20% would go to the Nigeria public allocated through the public offer, another good development of the offer decree, is that it provides full commercialization of nine enterprises and partial commercialization of 24 others, these are about commercialization and it was not disclosed in this work because our major concentration is on privatization.
1.2RESEARCH QUESTIONS:
This research is set out to carry out investigation on the effects and impact of privatization on the Nigeria money market and the Nigerian economy as a whole and may be summarized as follows:
1.To rationalize public enterprises in order to increase efficiency.
2.To deregulate the economic system by reducing unnecessary administrative controls of government.
3.To minimize the volume of unproductive instruments in the public sector.
1.3STATEMENT OF THE PROBLEMS:
In the money market, there has been an import and fall out on privatization programme due to the exercise in the money market. By this statue the privatization companies are to be quoted on the Central Bank right from 1988 when the exercise took effect and it expected that the money market would be appreciably developed and boosted in its operatives, the significant impact in such market devices as market capitalization numbers of instruments, value of operations and it has not being properly cleared whether or not these expectation are realized.
There are at least few studies that have empirically demonstrated this, using Nigeria as evidence, the need therefore, arise for a study to menacingly determine the direction and magnitude of the effect of privatization on development of the Nigeria money market.
1.4RESEARCH QUESTIONS:
In this study paper, we will attempt to answer questions that are incidental to this research topic, they are as follows:
1.What are the major problems confronting the privatization programme in its contribution to the Nigeria money market?
2.To what extent has privatization exercise which the Nigeria government has been carrying out over the years affected the money market?
3.In what ways has privatization significantly an
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