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The Impact Of Privatization And Commercialization Of Public Enterprises On Economic Growth Of Nigeria
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Several
experts and informed opinions have presented privatization and
commercialization as one of the bitter pills to be taken by Nigeria’s in
order to recover from economic slump, it to a great extent helps to
solve some vital problems that has led to the untimely devastating
problems is the syndromes of “not- my fathers- work†which has greatly
and negatively affected both smooth running and performance of the these
enterprises. The privatization policy was recommended by the onside
report of 1982 by the Athakem study group of statutory corruptions and
state owned corporations set up in September 1984, the competence of
chief Executives of Nigeria public enterprises held in Jos, plateau
state in May 29-30, 1985 and by international minatory fund, as a
condition for is loan to Nigeria.
Public enterprises in Nigeria has
been considered as inefficient and wasteful, this is because they have
viewed it wish the profit criterion. According to a school of thought
asserting the activities for public enterprises with the profit
criterion is not always a fair judgment economic activities, it is
usually not appropriate to us the performance standard of the private
sector “they are horses of different coloursâ€. Unfortunately, the
Nigerian public sector enterprises have failed in this efficient and
effective provision of the services for which they were established.
Infact it was this feeling of failure and crimelessness arising from the
increased difficulty in the government that prompted the proposition of
privatization policy in Nigeria.
For a large part of the frontlets
century, there were countries in the world (Eastern bloc) that promised
state ownership of means of production, whiles other (Western bloc)
promised private ownership of the means of production. A good number of
countries practiced what was termed mixed economy i.e. the combination
of public and private ownership of he means of production. However, at
the end of the twentieth century with the end of the war between the
eastern and western blocs, private ownership of means of production took
ascendancy.
Today, the received wisdom is that the state should
recede and that private ownership of means of production is the only
viable approach to efficient production f goods and services, economies
growth and development. Nigeria has more than 1,800 public enterprises
at Federal and state level which can be categorized as follows:
i. Public utility providing infers fractural services
ii. Strategic industries such as petroleum and petrochemical, fertilizer plans iron steel.
iii. Economic/Commercial enterprises such as manufacturing of consumer goods insurance, banks and hotel.
iv.
Departmental/stationary boards designed to serve specific socials of
development roles as university and research institutes, Ake (1981)
It
is important to note that the introduction of SAP in 1986 serves as a
bench mark in economic policy-making in Nigeria with the resultant,
liberalization, deregulation, Privatization and commercialization
measures. The critical question here remains how many of these policies
have been able to resituate the political economy of Nigerian and in
true alleviating the yearning and aspiration of the working class.
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ABSRACT - [ Total Page(s): 1 ]So much effort has been made towards understanding the relationship between privatization and commercialization and the economic growth of Nigeria. Privatization and commercialization of pubic enterprises in every economy is introduced for the attainment of specific objectives which includes economic growth and stability. Data was collected and analyzed using ordinary least square method (OLS). The result of the study shows that there is a positive but insignificant impact of private investment ... Continue reading---
