CHAPTER ONE
Introduction
1.1 Background
of the Study
Mojubalu O.O. (1999).
In the era of post colonialism, Nigeria has at one time or another, embarked
upon certain policies that have political economic implications. For instance,
from 1960 to date, Nigeria has introduced indigenization and nationalization
policy, operation feed the nation (OFN), austerity measure, structural
adjustment programme (sap), deregulation of oil sector, resource control
privatization and commercialization of public enterprises to mention but a few.
The critical question here remains. How many of these policies have been able
to restructure the political economy of Nigeria to the tune of alleviating the
yearnings and aspiration of the working class.
Aboyade .O. (1974) the
world no doubt is moving towards capitalization any nation is not moving
towards this direction is seen as either not developing or even retrogressing. A capitalist economy is
free market economy which allows most economic decisions to be guided by the
twins forces of demand and supply. Since capitalization discourages monopoly
but encourage competitive market therefore enhances efficiency and high
productivity which is very vital in any developing country’s economy. In
Nigeria, most government owned industries and establishments remain citadels of
corruption, studies in efficiency and consequently a heavy drain on the
economy. As a means of curbing this menace, the bretton woods institution (IME
& WORD BANK ) have advocated the twin policies of privatization and commercialzatin.
Incidentally, Nigeria has fully adopted this policy and is embarking on it with
frenzy.
1.2 Statement Of Problems
privatization and
commercialization of public enterprise is a vital tool for the upliftment of a
country’s political economy, more especially, the developing countries like
Nigeria. Regrettably, the problems facing this privatization and
commercialization programs is numerous to include.
·
Corruption
·
Lack of transparency
·
Lack of accountability
·
Inconsistency and
·
Incredibility
However,
it is based on these problems that the basic preposition of this privatization and commercialization program are being
hindered. In trying to look into these discrepaines and proffer a way forward a
positive state of privatization and commercialization of public enterprises in
Nigeria, this research work emanated.
1.3 Research Questions
This work will tend to
ask some relevant questions like;
v What
caused the evolution of the public enterprises in Nigeria?
v What
are the reasons why these public enterprise have to be sold despite the
rationales for its establishment?
v Can
these corporations function well under the state rather than being privatized
whether wholly or partly?
v How
far has this privatized enterprises gone in boasting efficiency and high
productivity to benefiting Nigerians as a whole whether poor or rich higher or
less privileged?
v Who
are the main beneficiaries of the privatization and commercial program?
1.4 Objective Of The Study
This paper will take a
general look on
Ø The
evolution of public enterprises in Nigeria, after and the rationale for its
establishment,
Ø To
access the factors that led to the privatization and commercialization of
public co-operation and its origin.
Ø Thirdly,
this work will also evaluate the various privatization and commercialization
programs embarked by the Nigerian government from 1988 to 2010.
Ø Finally,
it is the objective of this research work to fish out those problems that have
obstructed the full prepositions of privatization and commercialization program
as it concern it implementation and as well proffer a way towards actualizing
its objective so as to foster political cum economic growth and development of
this highly endowed country Nigeria.
1.5 Research Hypothess
v Corruption
is the cause of the poor performance of the public corporations.
v Good
and transparent government is the key an efficient public enterprises.
v A well implemented privatization and
commercialization programs boosts political economy of a country.
v Politicization
of privatization and commercialization of public enterprises will lead those
enterprises inefficiency when sold out.
1.6 Significance Of The Study
This research work will
help the government and reader to understand those benefits that privatization
and commercialization programme embodies which we have neglected and
politicized within the past.
In understanding this on the side of the
government, it will allow them to rethink and work towards real implementation
of it there by creating a room for the rapid growth and development of this country.
At the other hand, it
will go a long way to create an avenue for more academic research.
Haven known this, it is
worthy to conclude that the main beneficiaries of this study lies on the
government and other reader respectively.
1.7 Scope Of The Study
the scope of this
research work focused strictly on those privatization and commercialization
programs that have been embarked upon by Nigerian government from 1988 to 2010.
This work will lead us to the evolution of public enterprise in Nigeria and
also examine why they latter turned out to be sold or privatized, partly or
wholly. Finally, to analyze how politics been played by past administrations
since 1988 towards this programme have ridicules this whole exercise.
1.8
Theoretical Framework
On the course of this
research, the following problems were encountered, like short time frame.
Financing, problem, scarcity of information or data etc. this is due to mainly,
the wide scope of this study which emphasizes on a complex institution like
Nigeria. The longer duration of the subject matter to study which dates from
1988 to 2010 concerning privatization and commercialization program of public
enterprises in Nigeria also contributed. Now, the implication is that the short
time frame mapped out for this research work posed a problem of assessing these
programs as whole, but that doesn’t threat these authentication and quality of
this work.
Again, enough financing
of the accomplishment of this work became a problem in the sense that gathering
information was costly, the researcher needed enough money to gather them.
1.9Definition
Of Terms
public corporation:
public corporation or enterprises as defined by Adamolekun (1983) are
organization that emerged as a result of government acting in the capacity of
an entrepreneur. They can be seen as those corporations or
enterprises built owned
and managed by the government. They are being financed with public fund,
especially through taxation and also operate on monopoly.
Privatization:
privatization can be defined as the transfer of ownership and control of
enterprises from the state to the private sector. Iheme (1997) defined
privatization as any of a variety of measurer adopted by government to expose a
public enterprises to competition or to bring in private ownership or control
or management into a public enterprises and according to reduce the usual
weight of public ownership or control or management.
Commercialization:
commercialization is act of making government owned enterprises profit
oriented. Commercialization can be full or partial according to the bureau of
public enterprises act of 1993. In both full and partial commercialization no
divestment of the federal government shareholding will be involved and subject
to the general regulatory powers of the federal government.
Capitalism: capitalism
means the economic system in which property is privately owned and goods are
privately produced.
It is sometimes
referred to as the private enterprises system.
It is the private ownership of the
business of a society with the freedom of private owners to use, buy and sell
their property or services on the market at voluntarily agreed prices and terms, with only minimal interference with
such transactions the state or other authoritative third parties.