ASSESSMENT OF PRIVATIZATION POLICY OF PUBLIC COMPANIES IN NIGERIA

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TABLE OF CONTENTS

TITLE PAGE
APPROVAL PAGE
DEDICATION
PREFACE
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS

CHAPTER ONE
INTRODUCTION
Background of the Study
Statement of the Study
Objectives of the Study
Research Questions
Significance of the Study
Scope and Limitation of the Study
Definition of Terms
References
CHAPTER TWO
Review of Related
Definition of Privatization
Conditionalities Necessary for Privatization
Diverse view to the Privatization Policy and Precautionary measures
Programmes and Policy implementation of privatization
Reasons for Privatization
Contracts on Privatization as policy measure
References

CHAPTER THREE
Research Design and Methodology
Sources of Data
Location of Data
Method of Investigation
Sample Size
Methods of Presentation of Data
References

CHAPTER FOUR
Data Presentation and Analysis
Analysis of Questionnaire

CHAPTER FIVE
Findings
Recommendation
Conclusion
BIBLIOGRAPHY

CHAPTER ONE

BACKGROUND OF THE STUDY

Nigeria as one of the developing countries tagged third world countries. It was the opinion of the concerned nationalist that it would almost be very dangerous and unrealistic of the independence to allow that task of national development in the hands of private individuals. For this reason the government had established government owned corporations and parastatals to help it plan, guide regulate, direct and control the economy and the pace at national development.
However, in contrast to the great expectation of the government, that sum to the setting up of those enterprises have not been something to write home about.

Those corporations show a lot of demoralizing effects all those things includes; beings unable to give account of capitals invested in the firm, low quality of services should, insecurity of job facing workers etc.
The highest of it all is their inability to give account of money allocated to them by government. A few of them stand out like, the Nigeria coat corporation, the Nigeria Airways, Nigerian Telecommunication (NITEL), National Fertilize Company (NAFCON) Nigerian National Petroleum Corporation (NNPC) and the National Electric Power Authority. Among all these parastatals, the services of the hast establishment (NEPA) has been painful to the consumers to the extent that they have customarized it never expect power always. These are common examples cited by those who point out the inefficiencies that are warrant in the government owned enterprises been privatized.

The governments concern about the poor performance of its corporations and parastatals become a major factor until when the second wave of oil guide hit the world Nigeria’s oil began a dangerous effects.
In 1981, the President Alhaji Shehu Shagari set up another commission on parastatals to study their operational problems and recommend how these can be solved to help them provide efficient services for which they were established. The commission recommended that commercially oriented parastatals should be solved to subject themselves to their discipline.
It observed that many of the problems which seem internal to parastatals were deny from the realities of the socio-social and socio-political environment in which they operate and to propose only reform internal to the parastatals or in their getting parastatals to satisfy public expectation is simply to ignore significant roles expected in order to interpret this, the commission recommended privatization of some government owned enterprises.

It was evident that the problems of government owned enterprises and how to handle them had taken the center stage in the country’s attempt to revamp the economy. It did not take too long he was overthrown. The former first head of state from 1984 to 1985 Muhumedu Buhari appointed a study group on statutory corporation and parastatals to review the financing, profitability and performance records of state ventures. The group has Ali-Al-Makin (then managing director and Chief executives of the Bank of the North Plc). As the head, this group was charged with the responsibility of identifying the major problems of these enterprises as vague and conflicting objectives inadequate autonomy, inflexibility in decision making process, inappropriate capital structure, under-utilization of assets, absence of good credit control system and inability to collect debts, lack of adequate cost control measure, ineffective and inefficient management on formation and accounting system, absence of financial and operational performance recommendations as a possible solutions to or act at least as of those problems is selective privatization.
Inspite of the huge amount of money, pumped into such enterprises, they have failed to achieve the minimum level of efficiency that was expected of them.

In 1986, National Annual Budget speech, the then president Ibrahim Babagida put the issue clear that public corporation have been constitute and unnecessarily high burden on government.
The current financial constraints of the government have worsened their problems, thus something have to be done to come as a reasonable solution or the accumulated losses that the parastatals contributed to the economy.
And so, purely on the grounds of promotion, it becomes necessary for government to take a hard to these parastatals and that was why it decided that some measures should be taken this privatization.

ASSESSMENT OF PRIVATIZATION POLICY OF PUBLIC COMPANIES IN NIGERIA