the economic fortune of the organization of petroleum exporting countries (OPEC)
nations suffered a tragic experience due to the sudden fall of the oil price in
the eighties and nineties, the economy system of its members became a source of
concerned as the survival of their organs was greatly threaten. Due to the
sudden fall of the oil prices, several developing nations, therefore, evolved
strategies that will pull them out of the economic being one of the
country affected was not excluded and
one of the strategy to be employed was to privatize and commercialize
government public enterprises which many believed will lead the country out of
her economic wound.
National Petroleum Corporation (NNPC) is one of the public enterprises owned by
the federal government of Nigeria to provide petroleum product to the populace.
The wind of the economic recession that spreads across the country didn’t spare
NNPC. NNPC got it share couple with mismanagement of resources by those
responsible to manage the day-to-day affairs of the organization. These led to
their in ability to meet the aims and objectives of setting them up. The only
way out seems to privatize and commercialized the sector to have enough funds
to meet its service to the populace through selling of shares and foreign
programme will not only make funds available but also provide better management
and managerial skill for effectiveness and efficiency.
study will examine its positive and negative on the enterprises. The Nigeria
economy, employees and Nigerian government.
TABLE OF CONTENT
Cover page- - - - - - - - - - i
Title page- - - - - - - - - - - ii
Declaration- - - - - - - - - - iii
Approval page- - - - - - - - - - iv
Dedication- - - - - - - - - - - v
Acknowledgment- - - - - - - - - vi
Abstract- - - - - - - - - - - viii
Introduction- - - - - - - - - 1
of study- - - - - - 1
Statement of problems- - - - - - - 3
Significance of Study- - - - - - - - 4
Objective of study- - - - - - - - 6
Hypothesis- - - - - - - - - 6
Scope of the study- - - - - - - - 8
delimitation of study- - - - - 8
Definition of terms- - - - - - - - 9
CHAPTER TWO- Literature
Introduction- - - - - - - - - 12
Privatization in Nigeria- - - - - - - - 13
Nigeria- - - - - - 15
privatization and commercialization - - - 18
Objectives of the
policies- - - - - - - 32
Public enterprises in
Nigeria- - - - - - - 34
privatization and commercialization- -- - 37
Conclusion- - - - - - - - - - 40
CHAPTER THREE - Research
Introduction- - - - - - - - - 42
Population of study- - - - - - - - 42
Sampling - - - - - - - - - 42
Method of data Collection- - - - - - - 43
3.4.1 Interview - - - - - - - - - 43
3.4.2 Questionnaire- - - - - - - - - 43
3.4.3 Secondary sources- - - - - - - - 44
Method used in Analyzing
Data Collected- - - - 44
CHAPTER FOUR - Presentation
and Data Analysis
Introduction- - - - - - - - - 45
Presentation of Data - - - - - 45
Summary of the finding- - - - - - - 55
Test of hypothesis- - - - - - - - 56
CHAPTER FIVE - Summary,
Conclusion and Recommendations
Summary - - - - - - - - - - 59
Conclusion- - - - - - - - - - 60
Recommendations-- - - - - - - - 62
Bibliography- - - - - - - - - 66
Appendix I - - - - - - - - - 67
Appendix II - - - - - - - - - 68
means the sales of public enterprises to private hands through the sale of
share. The privatization programme in Nigeria is mean to benefit almost all
Nigerians. While, Commercialization is the selling of share of some of the
government to make them operate as profit making venture. It is the re-organization
of enterprises in such a way that they shall operate as profit making
commercial ventures and without subvention from the federal government.
Commercialization can come in two forms;
enterprises are expected to operate profitably on commercial basis and to be
able to raises fund from the capital market without government guarantee.
enterprises which may be considered by the government for capital grant to
finance their capital intensive project.
BACKGROUND OF THE STUDY
and commercialization was first hinted by the Shagari Government of Second
Republic followed by Buhari’s Regime, but was only given priority in 1986
speech when the then president Babangida said that parastatals have constitute
an unnecessary high burden on government resources. As from 1986 the volume of
non-statutory transfer to all economic and Quasi-economic parastatals
constitute not more than 50% of their present levels”
essence, president Babangida Had went further to expressed out the position of
government in relation or with respects to the public enterprises with regard
to their performance, and criticized them as follows;
inefficient in their operations.
are avenue for corruptions.
burden on government
are not making return in respect to investment made on them.
views are that government involvement in enterprises is the failure in economic
development and that business is not a venture for government.
the country developed and the economy expanded many public enterprises in the
country find it difficult to render effective service. A number of problems
were responsible for the ineffective performance of these corporations and
enterprises. They include;
v In appropriate
capitalization from inception.
definition of roles and objective for setting them up.
government ownership which did not encourage profit orientation operations.
of political environment.
funding conditions of service and work environment
attitude to work on the part of workers of the corporation who believed that
government would always provided subvention for the payment of their salaries
interference in the management of the corporation by the supervising agencies
of the government.
v The partial
failure of the antagonization Degree.
v The windily
foreign earning from export of petroleum which had become the main stay of the
economy by the end of the 1970’s
v The heavy
linkage of natural expenditure and product to imports resulting in heavy
foreign debt burden from the early 1980’s and the poor performance of public
enterprises and corporations, all combined to create rapid and serious down
ward trend in the Nigerian economy.
in 1988, decree 25 was promulgated to recognize such enterprises. Thus,
government corporations were commercialized. Now a second phase of the
programme was inaugurated by the present administration taking a new step. The
focus of the paper the examination of the success or other wise of the
programme on public enterprises in Nigeria.
relevance of this study can be examined from three perspectives, as follows.
The Researcher’s point of view
Nigerian Public enterprises
it is hoped that this research would serve as variable guide to our policy
makers and future policy enquiries into this fold.
study is relevant to the research as it will provider the opportunity to know
more about privatization and commercialization.
is also relevant to public enterprises or government corporations privatized or
commercialized or yet to be privatize or commercialized specifically the case
sturdy of this research work. As it will highlight to their operation. The
recommendation made in this study will be useful to them in particular and to
the project will be of immense importance to the general public either for
research work or just to increase their knowledge and create more awareness on
the concept of privatization and commercialization programme as well as the
problems an solution to the problems of Nigeria public Nigeria.
objective of this study is to critically evaluate the effort of privatization
and commercialization programme. The primary aim of this research is to:
out the prospects and problems of the implementation of the privatization and
commercialization programme on public enterprises.
out to what extend the programme can be able to get rid of ineffectiveness and
inefficiency of public enterprises.
c) Find out
its possibilities of fostering development on the Nigeria economy.
out if will improve the welfare and standard of public workers.
this project also intended to recommend ways of solving the problems of public
enterprises in Nigeria.
line with the objectives of this research work, the following hypotheses were
- That privatization of public
enterprises will have negative effect
on Nigeria economy.
- That privatization of public
enterprises will have positive effect on
-That commercialization of public enterprises will have negative effect on Nigeria economy.
H1 -That commercialization of public enterprises will have
positive effect on Nigeria economy.
– That the privatization of public enterprises will not improve the operation and services, welfare and
standard of worker in the public
– That the privatization of public enterprises will improve the operation and services, welfare and
standard of worker in the
OF THE STUDY
research works intend to assess the effort of privatization and
commercialization exercise on public enterprises in Nigeria.
research will be limited to only Kaduna refining and petrochemical company
(KRPC) Being the case study of this research work.
AND DELIMITATION OF STUDY
undertake a study of this nature is not easy because it is a wide field of
study and thus has various limitation/problem.
first limitation is for the success of any research work depends on
availability of fund. The fund is needed for buying of materials, browsing etc.
the case of primary data. The respondent may not be granted the audience for
interview another limitation is high cost place or more current information on
long the line, the administrative bottleneck of the organization may jeopardize
the effort of the researcher in union case the management would refuse to
disclose vital information as a matter of policy.
of the time the administration of questionnaires does not achieve its
objectives, as filling is uncompleted and returning them are often delay beyond
Time of compilation and submission of work is always too short. And many things
are expected of the researcher to accomplish at a time, theses are not fair to
the quality of the research.
study is to confined to Kaduna Refining and Petrochemical Company (KRPC) were
it will assess the effort of privatization and commercialization in Nigeria
economy context. The research will cover the period from 1983 to date.
PRIVATIZATION: Sell of public enterprises or corporations
owned by the government to private individual to manage though the use of
of the part of the public enterprises to private individual.
sales of public corporations to private individuals.
COMMERCIALIZATION: This is when government enterprises are
operated as profit making organizations
COMMERCIALIZATION: When enterprises are operated to make maximum
government enterprises are operated to make the maximum profit possible
DEREGULATION: To free trade, Business activity etc from
rules and control.
B.P.E: Bureau for Public
enterprises: this is an administrative set up for close evaluation of public
enterprises in Nigeria.
SHARES: Part as portion of target amount which is
divided among general or among people or to which many people contribute.
HOLDERS: Owners of shares
in Business Company.
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