THE IMPACT OF COMMERCIALIZATION AND PRIVATIZATION OF GOVERNMENT OWNED AGENCIES ON THE NIGERIAN ECONOMY. PROBLEMS AND REMEDIES. (A CASE STUDY OF POWER HOLDING COMPANY UYO)
TABLE OF CONTENT
Cover page
Title page
Certification
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE: INTRODUCTION
1.1 Background Of The Study
1.2 Statement Of The Problem
1.3 objective of the study
1.4 research questions
1.5 significance of the study
1.6 scope of the study
1.7 limitation of the study
1.8 definitions of terms and acronyms
CHAPTER TWO: REVIEW OF THE RELATED LITERATURE
2.1 Introduction
2.2 Concept of privatization
2.3 Reason for privatization of government owned agencies in Nigeria
2.4 types of privatization
2.5 objectives of privatization and commercialization programme in Nigeria
2.6 Concept of commercialization
2.7 Types of commercialization
2.8 Benefits of privatization
2.9 Problem of privatization in Nigeria
2.10 Function of technical committee on privatization and commercialization
2.11 The summary of commercialization and privatization of port-Harcourt Electricity Distribution Company
CHAPTER THREE: RESEARCH DESIGN AND PROCEDURES
3.1 Introduction
3.2 Area of the study
3.3 Population of the study
3.4 Sample determination and sampling techniques
3.5 Source of data
3.6 Method of data collection
3.7 Data presentation and analysis method
CHAPTER FOUR: PRESENTATION AND ANALYSES OF DATA
4.1 Introduction
4.2 Data analysis and results
4.3 Discussion of findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
References
Appendixes
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Privatization, a method of allocating assets and function from the public sector to the private sector, appears to be a factor that could play a serious role in the quest for growth. In recent history, privatization has been adopted by many different political systems and spread to every region of the world.
The process of privatization can be an effective way to bring about fundamental structural change by formalizing and establishing property rights, which directly create strong individual incentives. A free market economy largely depends on well defined property rights in which people make individual decision in their own interest. Modern market economics generate growth because widespread, formal property rights permits massive, law-cost exchange, thus, fostering specialization incentives that induce productivity, privatization improve efficiency, provide fiscal relief, and encourage wide ownership and the availability or credit for private sector.
The issue of privatization has been a subject of intense global debate in recent years. In Africa, it has remained highly controversial and politically risky,. Privatization in Nigeria over some time has not been a popular reform. It ha received so mush criticism from labour, academic and individuals. There have been numerous strikes against proposed sell-offs by fearing loss of jobs, while proponents of privatization see that aspects of economic reform as an instrument of an efficient resource management for rapid economic development and poverty reduction. The critics argue that privatization reflects damage on the poor through loss of employment, reduction in income, and reduced access to basic social services or increase in prices.
Commercialization on the other hands has much influence on the economic growth and development of any country. It is in practice because it deals on the reorganization of public enterprises in much a way as to operate as profits making commercial ventures, with subvention from government, through the government still retains its full or parts ownership. It could also be whole or partial. Commercialized enterprises use private sector procedure in the day-to-day administration of business.
However, when a public enterprise is commercialized, it reduces the burden of the enterprise on government. The governments do not spend much resource on the enterprise because the enterprise can stand on its own as profits oriented ventures, which will in order way make returns to the government.
There are many economic benefits that are connected to the process of pursues privatization and commercialization. One of the main reasons why countries pursues privatization an commercialization is in order to reduce the size of the existing government, based on the idea that many governments have become too large and over-extended, consisting or unnecessary layers of bureaucracy. Therefore, many countries require restructuring in order to improve efficiency, which can be achieved through privatization and commercialization.
The private sector responds to incentives in the market, while the public sector often has non-economic goals. In other words, the public sector is not highly motivated to maximize production and allocated resources effectively, causing the government to run high-cost, low -income enterprises.
Privatization and commercialization directly shift the focus from political goals to economic goals, which lead to development of the market economy (Poole, 2001). By privatizing and commercialization, the role of the government in the government in the economy is reduced. Thus, there is less chances for the government to negatively impact the economy.
1.1.1 PORT-HARCOURT ELECTRICITY DISTRIBUTION, UYO.
The history of electricity development in Nigeria can be traced to the end of the 19th century when the first generating power plant was installed in the city of Lagos in 1898. From then until 1950, the pattern of electricity development was in the form of individual electricity power undertaking scattered all over the towns, some of the undertaking wee federal government bodies under the public works, department, some by the native authority and other by the municipal authority.
With time, power were circulated to all part of the country and the popular authority that controls it for a long time was known as (NEPA) National Electric Power Authority. It acted as the virtual sole provider of electricity in the country for a long times. However, towards the mid 1990s, licenses were given to private power generating companies. The federal electric power reform Act 2005 further deregulated the sector splitting NEPA and leading to the change of name from NEPA to the power holding cooperation of Nigeria.
The company dominance of the power system in Nigeria started in 1972 with the merger of the electricity cooperation of Nigeria and the Niger DAM Authority. However, the social reality of irregular power supply made it to called ‘’Never Expect Power Always’’ by many Nigerians. De to this and other technical and managerial challenges faced by NEPA, the Nation decided to handle it over to a private body for efficient and effective running. Thus, ‘’ power holding company of Nigeria’’ came up as the power regulatory body in the country.
The body in-discharge of their duties was found inefficient by numerous Nigerians and this leads to exchange of name for power regulation. Thus, Port-Harcourt Electricity Distribution Company, Uyo, came to being. It is a sub-division of the Nations Electricity Power Authority in port-Harcourt that regulate power to most areas including Uyo chapter. Port-Harcourt Electricity Company, Uyo is located at No 213 Abak Road Uyo. The company is doing well to a certain degree. It is made up of departments for easy discharge of responsibilities.
1.2 STATEMENT OF THE PROBLEM
Privatization and commercialization of public enterprises is a vital food for the developing countries like Nigeria. The problem facing privatization and commercialization to the growth of Nigeria economy are glaring such as corruption, lack of transparency. Lack of accountability, inconsistency and incredibility among others.
However, it is these problems that hindered the government to see the growth of which privatization and commercialization to the growth of the economy and proffer a way towards for a positive state of privatization and commercialization in Nigeria, thus research work emanated.
1.3 OBJECTIVE OF THE STUDY
The study has the following objectives:
- To examine the impacts of privatization and commercialization policy of government agencies on the economy of Nigeria.
- To access how privatization and commercialization policies will increase productive efficiency in Nigeria.
- To find out the institutional framework and regulatory agencies charge with the responsibility of implementing privatization and commercialization on policies in Nigeria.
- To ascertain whether privatization and commercialization policy should be encouraged.
- To examine the reasons for the introduction of privatization and commercialization policy in Nigeria.
- To provide suggestions for solving the obstacles associated with privatization exercise.
1.4 RESEARCH QUESTION
The following research questions will be seen below:
- What is the impact of privatization and commercialization policy of government agencies on economy of Nigeria?
- Does privatization and commercialization policies increase productive efficiency in Nigeria?
- What are institutional framework and regulatory aganecies charge with the responsibility of implementing privatization and commercialization agencies in Nigeria?
- Should privatization and commercialization policy be encouraged?
- What are reasons for the introduction of privatization and commercialization policy in Nigeria?
- Are there obstacle associated with privatization?
- What are the possible ways of solving the obstacles associated with privatization exercise?
1.5 SIGNIFICANCE OF THE STUDY
The study will be useful in that;
It will give the research advance knowledge and information on the concept of privatization and commercialization policy of government agencies. It will also aid in proffering solutions on the problems arising from privatization and commercialization policy of government agencies. The study will be a vital instrument for the management of port-Harcourt Electricity Distribution Company. PHED, uyo in knowing the important expectation of the public on them and hoe to discharge their responsibilities effectively. The study will also serve as a point of reference or point of criticism to other researchers who like to delue into a study of this nature. To the government, the study will enable them to know whether the policy of privatization and commercialization is effective or not. Thus, paving a way for the next alternative actions.
1.6 SCOPE/DETERMINATION OF THE STUDY
The study will cover the impact of privatization and commercialization policy of government agencies on economy of Nigeria. It will also go further to include the importance of privatization and commercialization to the economy of Nigeria. Advantages and disadvantages of privatization and commercialization policy in Nigeria among others.
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THE IMPACT OF COMMERCIALIZATION AND PRIVATIZATION OF GOVERNMENT OWNED AGENCIES ON THE NIGERIAN ECONOMY. PROBLEMS AND REMEDIES. (A CASE STUDY OF POWER HOLDING COMPANY UYO)
