THE EFFECT OF PRIVATIZATION AND COMMERCIALIZATION ON THE NIGERIAN ECONOMY (1970-2010)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
To be able transform into an industrialize economy; an underdeveloped economy has to be privately and commercially developed.
The importance of establishing public enterprises or corporation began during the 19th century with the British telecom in 1884 under the telecommunication act and gained a worldwide support in Britain thereafter. Several nations particularly those in Africa, have come to embrace the principle as a way of eliminating low performance and inefficiency in the public enterprise sector.
Following the trend the Nigerian economy has come to embrace privatization as a cardinal principle of the state’s economic policy. Over the years, the Nigerian government has encouraged the development of the public sector, since independence in 1960 and particularly 1970s but has being commonly non successive because of government attitude towards public enterprises business management. In Nigeria, most government owned industries and establishments remain citadels of corruption, studies in inefficiently and consequently a heavy drain on the economy. As a means of combating this menace, the (IMF) and
8
(World Bank) have advocated the twin policies of privatization and commercialization incidentally Nigeria has fully adopted this policy and is embarking on it with frenzy. For example, Nigerian breweries changed from the most inefficient and loss-making company before privatization to one of the most profitable business in Nigeria. Nigeria has more than 1,800 public enterprises at federal and state levels which can be categorised as follows;-
i. Public utility providing infrastructural services.
ii. Strategic industries such as petroleum and petrochemical, fertilizer plants, iron steel.
iii. Economic /commercial enterprises such as manufacturing of consumer goods insurance ,banks and hotel ,and
iv. Departmental / stationary boards designed to serve specific socials or
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
To be able transform into an industrialize economy; an underdeveloped economy has to be privately and commercially developed.
The importance of establishing public enterprises or corporation began during the 19th century with the British telecom in 1884 under the telecommunication act and gained a worldwide support in Britain thereafter. Several nations particularly those in Africa, have come to embrace the principle as a way of eliminating low performance and inefficiency in the public enterprise sector.
Following the trend the Nigerian economy has come to embrace privatization as a cardinal principle of the state’s economic policy. Over the years, the Nigerian government has encouraged the development of the public sector, since independence in 1960 and particularly 1970s but has being commonly non successive because of government attitude towards public enterprises business management. In Nigeria, most government owned industries and establishments remain citadels of corruption, studies in inefficiently and consequently a heavy drain on the economy. As a means of combating this menace, the (IMF) and
8
(World Bank) have advocated the twin policies of privatization and commercialization incidentally Nigeria has fully adopted this policy and is embarking on it with frenzy. For example, Nigerian breweries changed from the most inefficient and loss-making company before privatization to one of the most profitable business in Nigeria. Nigeria has more than 1,800 public enterprises at federal and state levels which can be categorised as follows;-
i. Public utility providing infrastructural services.
ii. Strategic industries such as petroleum and petrochemical, fertilizer plants, iron steel.
iii. Economic /commercial enterprises such as manufacturing of consumer goods insurance ,banks and hotel ,and
iv. Departmental / stationary boards designed to serve specific socials or
Bibliography: Ojo, M.O. (1992).The evolution and performance of privatization and commercialization in Nigeria. spring filed publishers limited. Amachere D.K (1989) privatization and commercialization what role for the Accountant. University Press. Ayo, O (2000) A new approach to the economics of the west Africa, Ibadan; West Africa publishing press. Colin, K. (2000) backgrounds on privatization, London; oxford University press Hanson, H.L (1983). A textbook of economics. London; oxford university press BALA J.J ( 1985) the impact of commercialization in Nigeria. LERO Y P.J (1980) selling state owned enterprises (a cost benefit approach) Lagos; Fresh news paper. OGUNMOKUN, M.F (1989) privatization and commercialization of Nigeria key industries. Lagos: vanguard newspaper. June. Lawal (1981) a level of economics of West Africa. Ibadan: university press. Federal high court (2000).Research law and legislation united state: John Hopkins university press. Education board (2003) academic industry collaboration. United state: Oxford printing press. Federal might. (1976).federal might new vol.2 Nigeria: central bank of Nigeria printing press. Central bank of Nigeria CBN (1996): the bullion of the central bank of Nigeria publication insurance new vol.3 no.4 Nigeria: central bank printing press.