The effect of privatization and commercialization in Nigeria Economy.
We propose of research and find out some of the effect of privatization and commercialization in Nigeria economy.
In the first attempt the project is divided into three Chapters, the first chapter highlights on the introduction part, which explain the privatization commercialization as the economic policy geared towards reelecting government its hold one direct participation in economic operations in the country.
As from Chapter two, we engaged into detail discussion of the objectives of the policy, which they can manage better.
Finally, in chapter three by having a critical look on the programme and observation implementation problem, you will see that the exercise which the several major enterprise listed for privatization have been take off the list including rolling mills, fertilizer companies and sugar company.
Summary and conclusion, the engine of economy and industrial growth in the modern society is the private sector operators are into actual investment operations, the government focuses attention, only on the creation of the enabling investment climate, unfortunately Nigeria is circumstance of history prompted government to invest in these area better suited for private sector.
1.1 Data presentation (Highlight of the Study 22
2.2 Analysis of the data 24
2.3 Recommendation 27
2.4 Conclusion 27
2.5 References 30
Decree N0 25 1998 defines privatization as the religuishment of all V-parts of the equity and other interest hold by the federal government or its agency in enterprise. Whether wholly partly owned by the federal government. It therefore the process through which equity holdings of an enterprise is transferred from state ownership to private individuals or associations.
Commercialization, according to Decree 25 of 1988, is the reorganization of enterprises wholly or partly centered by the federal government in which such commercialized enterprises will be allowed by government to change for its product or services prices as may be determined by market force.
Therefore, privatization and commercialization is an economic policy geared towards relieving government its hold on direct participation in economic operations in the country. By so doing private investments as against public investment in economic spheres will be the determining factor in economic and industrial development in the country, while government responsibility will be creation of an enabling environment for such investment to thrive.
As stratify of economic development, the developing countries of Africa and Asia are being encouraged by the industrialized nations of the world who have actually had a positive taste of its benefit, to adopt it in their various countries development arrive.
Under this situation, the privatized and commercialized enterprise will enjoy relative autonomy and non-interference. Although their management. Also, government relationship with such enterprises as it relates to product/pure commercial basis.
Commercialization and privatization as X-rayed above therefore, will be a very good one the countries economic and industrial development drive if properly and sincerely implemented.
Operations of public enterprises where government enjoys eminent influence have over the year shown some taste of management inefficiency. The cause of distress, failure situation, how capacity utilization or inefficient performance in some public enterprises and parastatals are pure cases of management robbery.
On may ask therefore, why this state of affairs in the nations match to economic greatness? And how can this be realized? Also one may ask, can private sector be the engine room of economic development as they are all owed into all sectors of their national economic operations; however, it is our storm conviction that problems borders on human factor.
Every other problem revolves around it, with the scenario being played in our national economic life, it is quite clear that, government involvement in business enterprise in the country was in the man plausible at the beginning; however, fruits from the venture is disproportionately low compared to the investment made.
The above picture is exactly what happens in our system which is run by human beings who are themselves, public servants, a negatively disposed human factor is destructive in all facet of human involvement because of personal objective.
In the absence of goal congruence, an organization is bound to fail. This explains who:-
1. Our banking sector was rocked to the bad rock by cases of distress and outright failures.
2. Strategic public institution like NEPA, should be giving Nigeria more house of power outage than lights, any amount of financial investment made on it not with standing.
3. Rules and orders have been thrown to the wind in the operations of public business.
4. Our school students, enjoy more holidays in our homes than they stay in school for their studies due to numerous strike actions.
The list is endless, no wonder Peter Ejiofor/positioned (1987) that “the worst enemy of the public is the corrupt servants,’
Why is government in business is a pertinent question in this term paper. Proper answer to it will give us the right bearing on the topic and also, guide us in giving proper judgment on the programme and its implementation in Nigeria.
With Nigeria as a sovereign state in 1960 and the consequent exist of the colonial masters our post independence leaders (Government) realized that there were growing gap in different sectors of the economy between demand and supply:
There was then the need for the establishment of:-
(i) The nation’s security and printing company to print he nation currency and other security document.
(ii) To quicken the pace and even development in the country.
(iii) Care establishments of economic institutions in the country like NEPA, NIPOST, and SEA POST.
(iv) To ensure the foreigners do not dominate the national economy, informed by the institution of Nigeria enterprise promotion decree of 1972 and 1974 respectively.
(v) To exploit fully and profitably, the nation’s mineral resources which gave risk to the birth of NNPC and its subsidiaries where the federal government is holding substantial interests.
(vi) The government involvement in the ownership control of enterprises in the country were as much as valid and contrary policy would have been more destructive for the national economy within the time 1960 to mid 1980’s.
The expectation of the government from the privatization and commercialization public enterprises are as follows:-
(i) To gradually hand over to the private sector those public enterprises, which they are better in managing.
(ii) To create employment opportunities which will helps to minimize the rate of unemployment in the country.
(iii) To broaden the scope of share ownership in the country.
(iv) To promote international competition which will enable Nigeria to acquire knowledge and technology.
(v) To attract foreign investors
(vi) To generate revenue which enhance the government social Economic development in all part of the country.
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