ABSTRACT
This study examines privatization as
effective and efficient tool for economic development in Nigeria; a study of
Power Holding Company of Nigeria. It adopted a survey design to elicit data.
100 PHCN staff in the selected case study was used as sample using scientific
sampling technique. Questionnaires were used as the instrument for data
collection and the collected data were statistically analyzed with simple
percentage and Chi - Square statistical tool. All the hypotheses tested were
rejected. The findings revealed that there is a relationship between
privatization as effective and efficient tool for economic development. The
study also found out that there is a direct relationship between privatization
and regularity in supply of good and services. In view of these findings, the
study made the following recommendations: To achieve privatization of PHCN,
policy should be made to would be buyers to retain the staff. Also the problem
of the seller being the buyer, government should hand off in the buying of
privatization because what is not managed well as seller cannot be managed well
as buyer.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background
of the study
1.2 Statement
of the problem
1.3 Objectives
of the study
1.4 Research
questions
1.5 Research
hypotheses
1.6 Significance
of the study
1.7 Scope
and limitation of the study
1.8 Definition
of terms
1.9 Organization
of study
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual
clarification
2.3 Theoretical
framework
2.4 Historical
background of the case study (PHCN)
2.5 Summary
of chapters
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research
design
3.3 Restatement
of research questions
3.4 Re-Statement
of Research Hypotheses
3.5 Population
of the study
3.6 Sample
and sampling techniques
3.7 Method of
data collection
3.8 Data
administration procedure
3.9 Method
of data analysis and Interpretation
3.10 Validity
and reliability of the instrument
3.11 Limitations
of the methodology
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.0 Introduction
4.1 Respondents characteristics and classification
4.2 Presentation
and analysis of data according to Research questions
4.3 Testing
of hypotheses
4.4 Discussion
of findings
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATION
5.0 Introduction
5.1 Summary
of findings
5.2 Conclusion
5.3 Contribution
to knowledge
5.4 Recommendations
References
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Several reasons ere usually adduced
for the unsatisfactory performance of most public enterprises, such as
inability to fund their own programmes without seeking assistance elsewhere,
total disregard for financial procedures e.g. non-auditing of accounts for
year, poor debt recovery mechanism, failure to remit taxes collected to the
relevant authorities, corruption, stealing of public funds and award of highly
inflated contracts (Johnson 2004).
Dissatisfied with the poor
performance of state enterprises in the country, the government was determined
to sell off all unprofitable government-owned companies so that the federal
government could spend its dwindling resources on
other vital sectors of the economy. In order to remedy the situation, there have been
tendencies towards privatization in order to gained economic development
(Johnson, 2004:95).
Privatization as a jtool5 for
economic management came to the front burner when Chile became the first
country to turn public assets/businesses Ito private operators in the early
1970s, since then over 140
countries both developed and developing have embraced privatization as a tool
to economic development (Anger, 2008). But privatization became the major
policy thrust of the former civilian government of Chief Olusegun Obasanya
on assumption of office on May 29, 1999.
There is no doubt about the fact that
privatization is a very topical issue in Nigeria today and it means to make
private and Includes the entire process by which government transfers its interest in a
corporation or enterprise, by way of selling its investments to private
individuals or groups (Johnson, 2004). It also involves the selling of state
enterprises to the private sector (Ron, 1995).
Gusau (2000) noted that different
countries have pursued different objectives using the privatization policy. Some
have used it to address increasing budget deficit; some have used it to pursue
the goal of national debt reduction; some have used it to fight inefficiency,
etc. according to him, some of the goals that privatization has been used to
pursue have direct bearing on development. Thus privatization in Nigeria cent
on eh above objectives, ·has direct bearing on development.
In the context of economic
development, a look at the conceptualizatton
of economic development will help us to
appreciate privatization. The encyclopedia of Wikipedia argues that economic
development includes the process and policies by which a nation improves the
economic, political and social wellbeing of its people. It was also considered
as a static theory that documents the state of economy at a certain time.
According to Schumpeter (2003), the changes in this equilibrium state to
document in economic theory can only be caused by intervening factor coming
from outside. Now, privatization will be a working tool in this respect, for
efficiency and effectiveness which will eventually result into economic
development.
Power Holding Company of Nigeria
(PHCN) embraced this idea as she took privatization as a priority and this is
done for a number of reasons which among others includes: economic development,
regular supply of services, improved standard of living and increase the
performance of the company.
It is important to note that in order
to achieve privatization, there must be competition according to the Market
Conditions Model and not ownership per se according to the Schumpeterian Model.
1.2 STATEMENT OF PROBLEM
One of the problems that have
bedeviled public enterprises in Nigeria, especially those rendering essential
services to the public such as Power Holding Company of Nigeria (PHCN), Nigeria
Railway Corporation (NRC) etc, is inefficiency. One of the major roles of these
enterprises is the promotion of national development through the creation of
employment and reduction in the level of poverty, which will in turn increase
standard of living of the people. Over the years, these government parastatals
have performed below expectation 'due largely to a plethora of problems that
have confronted them. A lot of reasons have been adduced as factors responsible
for the abysm performance of these enterprises by different scholars who have
researched extensively into the activities of these enterprises, ranging from
under funding, corruption, mismanagement, political interference and other
factors too numerous to mention. In order to save these enterprises from these
problems that seem to be insurmountable, different groups have advocated a
variety of strategies that can be adopted to rescue these enterprises from the
mucky water of inefficiency.
One of the possible solutions that
have been advanced is Privatization. In Johnson (2004), privatization is seen
as gradual withdrawal of the state from economic activities for efficiency and
effectiveness to enhance economic development. Different groups have risen for
and against this move of making public enterprises effective through the
instrument of privatization. While the protagonists u of the view that
privatization will bring improve efficiency in the system, the antagonists view
strongly rejected privatization as an option. To them, privatization brings
about unemployment, and increase the level of poverty. This yet to be resolved
problem, seems to have hampered government efforts to privatize the nation's
public enterprises as all government efforts are always greeted with mass
protest from different interest groups.
The major problem this study intends
to investigate is whether privatization can truly be used as an effective and
efficient tool for economic development as advocated by the protagonist group.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is
to validate the fact that privatization is an effective and efficient tool for
economic development in Nigeria.
Other specific objectives include:
1. To investigate how privatization can
crease regularity in the supply of goods and services.
2. To investigate how privatization can
improve the standard of living of the people in Nigeria.
3. To examine the effect of privatization on
the performance of public enterprises in Nigeria.
1.4 RESEARCH QUESTIONS
The followings are tentative
questions which this research work intends to provide answers to:
1. Is privatization an effective and
efficient tool for economic development in Nigeria?
2.
Can privatization create regularity
in the supply of goods and service?
3. Is there any relationship between
privatization of public enterprise and improvement in the standard of living of the people in Nigeria?
4. How can privatization improve the
performance of the company or organization in view?
1.5 RESEARCH HYPOTHESES
This study will be geared towards
testing the following hypothesis:
1. There is a positive relationship between
privatization as effective and efficient tool and economic development.
2. There is a direct relationship between
privatization and regularity in the supply of goods and services by public
enterprises in Nigeria.
3. There is a relationship between
privatization and standards of living of people in Nigeria.
4. Privatization tends to enhance the
performance of public enterprises in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
This research project will be of
major significance to the government. Government serves as the wheel of the
state, the machine which runs the affairs of a state. To run the affairs of any
state, one deserves a good knowledge of what goes on within the state, how to
run the state, how the state can be improved, how economic development or
activities in such state can be enhanced. For this purpose, this study can be
of significance to the government.
This study will also be of
significance to policy makers who make potlces for implementation. Policy is the bedrock of any organization and
its effectiveness and efficiency determines an organization. Policy is what an
organization does to do and what it chooses not to do, therefore, this study
can provide knowledge to policy makers when making polity on the issue of
privatization.
This study will also be of
significance to scholars, students and other researchers who will also want to
undertake similar topic and serve as secondary source of data to them and also
give them insight into what the topic is about.
This research study will be of
significance to the organization under study that is Power Holding Company of
Nigeria (PHCN). One of the objectives of any organization is to attain certain
degree of productivity that would help in improving level of performance to
achieve economic development. It is necessary for organization to be effective
and efficient in achieving its goals, it is in the tight of this, that this
study will provide more knowledge about privatization which serves as a tool
for enhancing performances.
The study will also be of
significances to the general public by enlightening them on the essence or
importance of privatization and how it affects their standard of living and
their general wellbeing.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The unprecedented economic problems
in Nigeria since 1980s which led to the accumulation of debts and advise from
the international quarters to borrow and accept International Monetary Fund
(I.M.F.) conditionality and the subsequent refusal of the loan by Nigeria ted
to the structural Adjustment Programme (SAP). It was aimed at restructuring the
economy and making it more com and efficient. The restructuring of public
enterprises was an integral part of the Structural Adjustment Programme, in
1986. The actual implementation of commercialization and privatization started
in 1988 with the inauguration of the technical committee on privatization and
commercialization as contained in Decree No. 25 of 1988. Thus, in November
1989, the implementation process of full or partial commercialization and
privatization began.
In Nigeria, however, the
privatization and commercialization programme has become a major policy
instrument, which in addition with other instruments was expected to contribute
to the overall attainment of the generat macro-economic goals. However, some
enterprises, were fully or partially privatized or commercialized and they
includes: National Electricity Power Authority Nigerian Railway Corporation,
Nigeria Airport Authority, Minting Company Limited, Federal Housing Authority,
Oil Marketing Companies, Steel Rolling Mills, Paper Mills, Hotels and Tourism
to mention but a few. But as a result of inadequacy in terms of resources,
materials, time and energy, this study shall be limited within the confine of
Power Holding Company of Nigerian (PHCN) this was formerly known as National
Electricity Power Authority (NEPA).
1.8 DEFINITIONS OF TERMS
PRIVATIZATION
Privatization involves the selling of
state enterprises to the private sector. Is an 'umbrella term' which
encompasses, among others, direct sale of public assets into private bands, the
transfer of functions previously carried out directly by the state into the
private sector and the withdrawal of the state from responsibilities
previously undertaken, leaving such matters to be faced by individual citizens.
COMMERCIALIZATION
Commercialization
entails detaching the enterprises from government departments and ministries
and making them to be a cost accountability
centers as done in the private sector. Commercialization
on the other hand, can be defined as the re organization of enterprises, wholly
and partially owned by the government, in which such commercialized enterprises
shall, operates as profit making commercial ventures without subvention from
the government.
ECONOMIC DEVELOPMENT
Economic
development is the increase in the amount of people in a Nation's population
with sustained growth from a simple, low income economy to a modern,
high-income economy. Put in another way, is the analysis of the economic
progress of nations.
POWER HOLDING COMPANY OF NIGERIA
The
Power Holding Company of Nigeria abbreviation as PHC or PHCN), was formerly the
National Electricity Power Authority abbreviated as (NEPA) is an organization
governing the use of electricity in Nigeria.
PUBLIC ENTERPRISES
Public enterprises is defined as organizations whose
primary function is the production and sale of goods and or/ services and in
which government or other government controlled agencies have no ownership
stake that is sufficient to ensure their control over the enterprises
regardless of how activity that control is exercised.
PERFORMANCE
Performance
is activities carried out to the benefit of any organization, members and the
public. That is the, sum total of individuals and group effort to the benefit
of the organization in particular and the public in general.
1.9 ORGANIZATION OF THE STUDY
This
study is organized into five (5) sections or chapters and chapter one is on
introduction which will include background to the study, statement of problem,
objectives of the study, research questions, research hypothesis, significance
of the study, scope and limitations of the study, definition of terms and
organization of the study.
Chapter
two shall review the current relevant literature which will include
introduction, review of relat4ed literature and other sub headings such as:
criteria for privatization, objectives of privatization, methods of
privatization, process of privatization, ages and disadvantages of
privatization, and theoretical framework.
Chapter
three is on the methodology used in the study and shall include: re-statement
of research questions and hypotheses, research design, population of the study,
sample and sampling techniques, data collection instrument, administration of
data collection instrument and limitations of the methodology.
Chapter
four is on data analysis and presentation which shall include: introduction,
respondent characteristics and methodology
used in the study and shall include: re-statement of research questions and
hypotheses, research design, population of the study, sample and sampling
techniques, data collection instrument, administration of data collection
instrument and limitations of the methodology.
Chapter
four is no data analysis and presentation which shall ii introduction
respondent, characteristics and. classification, presentation and analysis of
data according to research questions, data analysis according to research
hypothesis
Chapter
'five shall include summary of findings, conclusion, recommendation and
suggestions for further studies.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment