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The Impact Of Privatization And Commercialization On The Nigerian Economy
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1.2 STATEMENT OF PROBLEM:
In a developing country like Nigeria,
privatization and commercialization of public enterprise is considered
by many as a vital tool for the growth and development of the economy.
In Nigeria some of the problems facing privatization and
commercialization program include: Lack of accountability Corruption
Lack of transparency Inconsistency It is important to note that the
major function that inform the establishment of these public enterprises
are to control the resources and raise funds for the provision of
certain infrastructural facilities particularly in services acquiring
heavy financial investment e.g. railway, electricity, telecommunication
etc, also generating revenue that will add to financial development
program and projects as variable instrument for the creation of jobs,
and ultimately facilitate economic growth and development.
However it
is based on the problems, that the basic propositions of this
privatization and commercialization program are being hindered. In
trying to look into these discrepancies and proffer anyway forward
towards a state of privatization and commercialization of public in
Nigeria that enhance economic growth and development, this research work
emanate. Before the introduction of SAP(Structural Adjustment
Program) in Nigeria Anyanwu (1993,251) reconciled that about 500
companies and parastatals in which the Federal government had invested
over #36 million naira as equity and sub-ventures from which she has
been realizing less than #500 million only annually. These also incurred
huge debts which are rapid and serviced by government. Also government
spent about 40% of its capital investment budget on public enterprise,
the provision of whose goods and services were often costly, inefficient
and subject political manipulation and thus federal government decided
to privatize and commercialize fully some of its public enterprise. This
policy however, has been characterized by several problems like
corruption, transfer of assets, siphoned of public funds, political
manipulations etc. Ogbonna (2004) recently the senate invited the former
heads of bureau for public enterprise Matlan El-Refai, Mrs. Ireme
Chibue etc. to sat about 50% of the government companied, that have been
privatized failed to operate properly due to lapses in the process and
to give details of hour which was generated and which account monies
will paid into (Daily sun 20/06/2011;8). According to Nwosu (2007),
privatization under mines growth, exacerbate perpetuates economic,
social and political injustice, between the healthy class and poor
majority perpetuates foreign economic domination, jeopardizes social
welfare and human conditions in the society. Therefore it is on this
ground that the research focuses on the extent to which privatization
and commercialization have affected the economy, examining the effects
of the program on the Nigerian economy.
1.3 OBJECTIVE OF THE STUDY:
According to H.R Zayyad they are many objectives of the program privatization and commercialization:
To
encourage share ownership by Nigerians in productive investment with or
to owned wholly or partially by the government, and in the process to
broaden the Nigeria capital market.
To re-orientate the enterprises
for privatization and commercialization towards a now horizon or
performance improvement, viability and overall efficiency.
To ensure positive return or public sector investments in commercialized enterprise.
To
check the present absolute dependence of commercially oriented
parastatals on the treasury for funding and to encourage their approach
to the Nigerian capital market.
To initiate the process of the
gradual cession to the private sector of such public enterprises that by
the nature of their operations and other socio-economic factors is best
performed by the private sector.
To create a favourable investments climate for both local and investors.
To
provide institutional arrangements and operational guidelines that will
ensure that by the nature of their operations and after that the gains
of privatization and commercialization sustained in the future.
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