PRIVATILIZATION AND COMMERCIALIZATION EFFECT ON NIGERIAN ECONOMY

PRIVATILIZATION AND COMMERCIALIZATION EFFECT ON NIGERIAN ECONOMY

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CHAPTER ONE

1.0     BACKGROUND OF THE STUDY

1.1     STATEMENT OF PROBLEMS

1.2     OBJECTIVE OF THE STUDY

1.3     SCOPE OF STUDY

1.4     DEFINITION

 

CHAPTER TWO

2.0     REVIEW OF RELATED  LITERATURE

2.1     GOVERNMENT EFFECT TOWARDS THE POLICY

2.2     COST OF PRIVATIZATION AND COMMERCIALIZATION

2.3     EFFECT ON PRIVATIZATION

2.4     EFFECT ON COMMERCIALIZATION

 

CHAPTER THREE

3.0     SUMMARY OF FINDINGS AND

3.1     RECOMMENDATION

BIBLIOGRAPHY

 

CHAPTER ONE

 

  • BACKGROUND OF THE STUDY

An unintended consequence of the indigenization exercise

is the need to privatize and commercialize government owned enterprises.

At the inception of the indigenization exercise, the intention of the government was to enable the citizens to control the commanding heights of the economy.

However, in the course of implementation, government become an active purchaser of these enterprises formerly owned by aliens.  This action became possible because of the sudden government’s opulence created only the oil boom wealth of that decade.  Government was not only involved in the acquisition of foreign owned enterprises but also dedicated to establish new ones.  In the 80’s how ever, there was negative down turn in the nation’s economic fortune and government was no longer able to fund these state owned enterprises adequately.

Furthermore, there are acute manifestation of managerial inefficiency in the way and manners these state owned enterprises were being administered.  Thus, enterprises which were supposed to e revenue generating ventures became government problem children which require massive financial investment before they can survive.  It was against this background that the Federal Government decided to privatize and commercialize these enterprises and this decision was put into operation by the promulgation of Decree No.25 of 1988.  The Decree aimed at privatizing and commercializing certain public enterprises.  The Decree also made provision for the establishment of a Technical Committee on Privatization and Commercialization (TCPC) whose major functions include: –

  1. advising on the capital restructuring need of enterprises listed for privatization or commercialization
  2. carrying out-public issues of shares for the listed enterprises
  • consulting with the security and exchange commission on the need for the shares to be issued
  1. advising the Federal Government on the allotment pattern for the shares to be issued

 

  1. overseeing actual sales of shares and
  2. preparing proposals for the sale of government shares in these enterprises for the approval of the Federal Government.

 

  • STATEMENT OF PROBLEM

Operation of public enterprises where government enjoys

shown some tester of management inefficiency.  This case of distress combaters and failure dilatation, low capacity utilization or inefficient performance in some public enterprises and parastatals are pure cases of management brigandage.  With the sceneries being played in over national economic life.  It is quote clear that government in business enterprises in the country was in the main plausible at the beginning, however, fruit frame the venture is disproportionately how compare with the situatio

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