ABSTRACT
Summary, this study is carried out to educate the
populace on the attributed or advantages that would be derived from the
privatization and commercialization of government industries.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY.
The
period of between 1972 to 1990 was a period described in the history of Nigeria
economy as the period of oil boom within which time incoherent application of
generated revenue from sale of crude oil was made.
The
various government many medium scale industries in various parts of the country
same of these industries so established import as much as 90% of its raw
material imputer from overseas countries.
The down
turn of the Nigeria economic fortunes which resulted from global oil gut has a
negative impact on the economy and which depended on the revenue from the crude
oil finance her their input oriented economy to as much as 85% could not be
unaffected in 1986, the Nigeria Government applied for a loan of $2.3 billion
from the international monetary funds of finance her acting economy. The
international monetary fund hence presented as set conditional ties which will equal Nigeria for the loan. One of these conditional ties was
reduction of government expenses on public parasitical.
1.2 STATEMENT
OF THE PROBLEM
According
to Wmer Sombert, capitalism has its own spirit which is profit seeking spirit
the motives to make profit from investment is considered a moving force which
derives investors.
When ever
the expected returns from investment is not fourth coming such investment may
be considered as avenue of financial loose, such as the economic situation
which contributed the Nigerian society when act of total of eleven billion #11
billion investment on parastatal and government owned industries realized a
divided of 93.1 million i.e 39% return.
This poor
return portrays the fear that such investment is a waste of public following a
global recessive in the oil revenue.
The first
official public statement on privatization was in the 1986 Budget special by
the Head of State. President Ibrahim Banangida, when he said “Government
parastatal have for long been subject of the study and policy, review. They too
have generally come to constitute an unnecessary high Burden on government
resources.
They have
been variously classified for purpose of reform government has now decided that
as from 1986 the value of non statutory transfer to all economic and quest
economic parastalals would constitute not more than 50% of their level. They
are to find the balance from increase in the price of their services and
products charges, tariffs and rate.
According
to Another C.I. Mbarieto in his paper “Capital restricting for successful
privatization. There is no doubt that excessive participation by the government
of developing in their economic it is obvious that the under lying cause of
privatization efficiency by making profit into such enterprises more productive
well and to competitive pressures privatization and commercialization of public
owned enterprises in expert to block the drain of government revenue by
bringing spirit of profit into such enterprises as well as provided the much
sought revenue for the art in public
program.
1.3 OBJECTIVE
OF THE STUDY
The
objectives or nationals build privatization of an industries listed below.
1. To
improve the management of government owned establishment.
2. To
encourage private individuals to invest in the industry
3. To
encourage foreigners to invest in the economy
4. To
encourage the development of local skill and technology
5. To
encourage development of private sectors
6. To
encourage healthy competition on the economy etc.
1.4 SIGNIFICANCE
OF THE STUDY
This study
is essential in the fact that privatization and commercialization of public
enterprises is being restored to as a solution for public enterprises,
importability, inefficiency and unproductively.
Public
enterprises in some western countries were privatized for maximum efficiency
and profitability, such enterprises include the British Telephone company. The U.S.
poital agency etc.
This study
is very timely especially since privatization and commercialization of public owned
enterprises is currently pursued in Nigeria with many potential investors
still ignorant of the benefit derivable from such investment.
Considering
the fact that there are limited literature on effect of the activities, this
research therefore seek to enlighten the general public about the effects of
privatization and commercialization as a policy option for the revitalization
of our inefficient public enterprises. It is also hoped that research work will
definitely create or stand as detain reference for further research work of the
issue.
1.5 SCOPE AND
LIMITATION OF THE STUDY.
There is
no doubt that the privatization and commercialization of the government owned
industries have many effects on the economy of the nation on infrastructure
development of the nation, on the standard of living of the nation in the
development of manpower of the nation but this study is only concern
On the
effect of this privatization and commercialization government owned industries.
That is to say that this study is limited to the effect of privatization and
commercialization of government owned industries which were privatized, example
of government owned establishment which we are talking about are NEPA, NITEL,
NIPOST, Nigeria
cement company, etc.
Therefore
this research represents an attempt to search for the effects which the
privatization and commercialization of government owned enterprises had on the
life of these enterprises. That is on the management of these enterprises, on
the effectiveness of these enterprises on the productivity of these enterprises
etc.
1.5 DEFINITION
OF TERMS
1. Privatization
– Transfer from state to private ownership
2. Commercialization
– To make money out of some thing
3. Government
– Method on system of governing or body of persons governing a state that is Nigeria
government.
4. Establishment
– To set up or establishing or being established. That is government owned
companies.
5. policy
– Plan of action, statement of aims and ides e.g one made by a government,
political party, business company etc.
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