ABSTRACT
This study is a descriptive research that examined carefully the pattern of Privatization and Commercialization Policy On National Economic Development in Jigawa state in order to acquire information on the evolution of a New World Economic Order which is characterized by the liberalization or deregulation of economic activities, with the aim of achieving efficiency and effectiveness in resource allocation and utilization This is the centered on the comparative analysis of privatization and commercialization on government enterprises in Jigawa State The main aims and objectives of this research are: To restructure and rationalize the public sector in order to lessen the dominance of unproductive investments in that sector, To check the present absolute dependence of commercially oriented parastatals on the Treasury for funding and to encourage their approach to the Nigerian Capital Market, To initiate the process of gradual cession to the private sector of such public enterprises that by the nature of their operations and other socio-economic factors are best performed by the private sector, To create a favorable investment climate for both local and foreign investors.
TABLE
OF CONTENTS
Title: - - - - - - - - - - - -i
Approval Page- - - - - - - - - - -ii
Certification - - - - - - - - - -- iii
Dedication
- - - - - -- - - - -iv
Acknowledgment - - - - - - - - - v
Table of content- - - - - - - - - - -vi
Abstract
- - - - - - - - - - -vii
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study - - - - - - - -1
1.2 Statement of the Problem - - - - - - - - -2
1.3 Aim and Objectives of the Study - - - - - - - -3
1.4 Research Questions - - - - - - - - - -4
1.5 Significance of the Study - - - - - - - - -4
1.6 Scope of the Study - - - - - - - - - -4
1.7 Definition of Concepts - - - - - - - - - -5
1.8 Plan of the Study - - - - - - - - - -6
Reference
CHAPTER TWO
LITERATURE REVIEW
2.1 Review of Related Literature - - - - - - - - -9
2.2 Theoretical Framework - - - - - - - - -14
2.3 The Concept of Privatization and
Commercialization - - - - -15
2.4 Meaning and Distinction between
Privatization and Commercialization - -15
2.5 Types of Privatization - - - - - - - - -17
2.6 Types of
Commercialization- - - - - - - - -17
2.7 Methods of Privatization - - - - - - - - -18
2.8 Method of Commercialization - - - - - - - -19
2.9 The Gains and Utilization of
Privatization Proceed - - - - - -19
2.10 Objectives of Privatization - - - - - - - - -20
2.11 Effects of Privatization and
Commercialization of Government Owned Industries on a Developing Economy. - - - - - - - - - - 21
2.12 Problems of Privatization - - - - - - - - -22
2.13 Necessary Conditions for the Success
of Privatization - - - - -23
2.14 Limitation of
Privatization and Commercialization - - - - - -24
2.15 Historical Analysis of the
Organisation Under Review (PHCN) - - - -
24
2.16 The Reason’s For Privatization of
PHCN - - - - - - - 27
2.17 Problems Militating Against PHCN - - - - - - - -28
2.18 The Mission Statement of Power
Holding Company of Nigeria (PHCN) - - -29
2.19 Felt Impact by Consumers - - - - - - - - -30
2.20 Types of Companies Under Full
Privatization - - - - - -31
References
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - - - -36
3.2 Research Approach - - - - - - - - -36
3.3 Research Design - - - - - - - - - -36
3.4 Population of the Study - - - - - - - - -36
3.5 Sample Size - - - - - - - - - - -37
3.6 Sampling Technique - - - - - - - - - -37
3.7 Method of Data Collection - - - - - - - - -38
3.8 Method of Data Analysis - - - - - - - - -39
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction --- - - - - - - - - - -40
4.2 Presentation and Analysis - - - - - - - -40
4.3 Responses of the Respondents - - - - - - - -42
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction - - - - - - - - - - -47
5.1 Summary - - - - - - - - - - -47
5.2 Conclusions - - - - - - - - - - -48
5.3 Recommendations - - - - - - - - - -49
Bibliography
Appendix
CHAPTER
ONE
1.0
INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
Today, we are witnesses to sweeping changes that are
taking place in the economies of both developed and developing countries. These
changes relate to efforts to move away from government ownership, control or
participation in the economy towards free enterprise and increased operation of
market forces. On the whole, the changes are making for the reduction in the
role of government in the economy with a corresponding expansion in private
sector ownership control and participation.
Despite the numerous measures in form
of economic policies consisting of several incentives to promote industrial,
agricultural, and other activities, the Nigerian economy for example still
exhibits very prominent features of underdevelopment and such features includes
poor managerial skill, heavy reliance on a single commodity oil, which has
failed to provide the much needed capital in huge sums as expected for the
conscious implementation of a single strategy of development.
Public business enterprises creates a solution in
which national funds that would have been better spent to guarantee new
economic activity and employment opportunities for the army of unemployed is
being used to subsidize deadwood that would neither grow nor change. Public
enterprises are enterprises that are controlled by the state, they are
non-profit oriented enterprises.
The participation of the
states in enterprises in Nigeria dated back to the colonial era. The task of
providing infrastructural facilities such as railway, road, bridges, water,
electricity and port facilities fell on the colonial government due to the
absence of indigenous companies with the required capital as well as the
inability or unwillingness of foreign trading companies to embark on this
capital intensive projects.
This involvement was
expanded and consolidated by the colonial welfare development plan (1946 –
1956) that was formulated when the labour party came to power in the United
Kingdom. This trend continued after independence such that by 1999, it was
estimated that successful Nigerian governments has invested up to 800 billion
naira in public owned companies.
The privatization and commercialization net of the
1988 and the Bureau of Public Enterprises Net of 1995 defined privatization as
the relinquishment of part or all of the equity and other interests held by the
federal government or any of its agencies in enterprises whether wholly or
partly owned by the federal government.
Although the
public enterprises have been subjected to criticisms, one to poor management
and inefficient utilization of resource and mostly regarded to a dead wood that
will neither grow nor change, it was these construct criticism levied against
them that led to the idea of privatization and commercialization in which the
exercise would enhance efficiency in the economy, rid firms of the crude and
undue governmental interference which have been the bane of most public
enterprise in Nigeria and other developing countries and also limit the drain
by the public enterprise on government resources but the basic objective of the
exercise is to enhance efficiency and profitability in the government owned
industries.
1.2 STATEMENT OF THE PROBLEM
Privatization takes an existing government services,
and replaces it with a private service. But over the years in Nigeria for
instance the sheer waste and inefficiency of government owned industries became
glaring from the early 1980s in with the onset of economic crisis, by then,
public companies had become heavily dependent on the national treasury for the
financial operation and their activities were characterized by mismanagement of
the funds and operations, corruption, misuse of monopoly power and bureaucratic
suffocation from supervising ministries, (Obadan, 2016) .
However, as noted by some writers, the actual
performances of many of the public enterprises have left much to be discussed.
Many of them were not responsive to the changing environment of the growing and
dynamic economy and they did not posses the necessary tools for translating
into reality the hopes of successful commercial operations. It was obvious that the commission‟s report
of cost effectiveness and insufficient attention to financial records by
parastatals. If recommended an increased role of the private sector especially
in non-sensitive or non-security related parastatals Olukeshi (2013:1).
Therefore, the policy of privatization and
commercialization of the development of the nation‟s economy has been called to
restructure and reverse the economy in the country and make it a better place.
1.3 AIM AND OBJECTIVES OF THE STUDY
The
aim of the study is to determine the effect of privatization and
commercialization policy on National economic development in Jigawa state.
The main objectives of this research
are:
i.
To find out the effect of privatization
and commercialization of KEDCO
ii.
To know the reason why government embark
on privatization and commercialization of KEDCO
iii.
To find out if privatization and
commercialization of government owned industries improved the efficiency of
service delivery on KEDCO.
iv.
To identify the problems militating
against privatization and commercialization of governmental owned industries on
KEDCO.
v.
To determine whether privatization and
commercialization help to solve the problems of government owned industries on KEDCO.
1.4 RESEARCH QUESTIONS
In other to identify the problems that are militating
against their performance, the following research questions were put forward.
i.
Why did government embark on privatization
and commercialization of their own companies in developing countries?
ii.
What impact does the privatization and
commercialization have on government owned companies or industries on
developing countries?
iii.
What are the problems militating against
government owned companies in developing economy?
iv.
To what extent does privatization and
commercialization proffer solution to the problems associated with government
owned companies on developing economy?
1.5
SIGNIFICANCE OF THE STUDY
A research is carried out to find out solution to the
various problems that face mankind in the environment or society. This study
tends to create awareness to citizens of developing countries and economic
planners on the implications of the privatization and commercialization of the
public enterprises in developing economies. The importance of this study has
both theoretical, practical and policy values and would help in the assessment
of government owned industries.
Also, the study will also stimulate further enquiry in
the study of policies particularly in the area of economic development.
Again, the study will be of immense academic
importance as it will give direction to students of political science and
public administration for further research into a new economic development. At
the practical level, the study will help to keep Nigerians and other developing
countries abreast with the challenges in an area of privatization and
commercialization. This will help to mobilize not only their intellectuals but
also the policy makers and administrators to rise to the challenges of
analyzing and integrating this new development in history.
1.6 SCOPE OF THE STUDY
The
scope of the studies in this research work is to know the effect of
privatization and commercialization policies in Jigawa State been to provide
enhanced Operational autonomy at enterprise level which evolve a more
results-oriented and accountable management, based on performance contracts;
strengthen financial/accounting controls at the enterprise level upgrade the
management information system of the affected enterprises; ensure financial
solvency of the public enterprises through effective cost recovery, cost
control and prudent financial management remove bureaucratic bottlenecks and
political interference through clear role definitions between the supervising
ministry, the board of directors and the management of public enterprises.
The
research is limited on privatization and Commercialization of government owned
public enterprises. Due to financial constraint, lack of sufficient time
materials for research, mobility to places in search of information to mention
but a few was limited. The need for creating public awareness of the
privatization programme was recognized very early in the day. Such awareness is
necessary not only to dispel certain misconceptions and fears about the
programme but also to explain, in as simple
1.7 DEFINITION OF CONCEPTS
Privatization
can be defined as narrowly as the transfer of government owned shareholding in
the designed enterprise to private share holders, comprising of individuals and
corporate bodies.
Commercialization
on its own, means the re-organization of enterprise wholly or partly owned by
the government in which such commercialized enterprises shall operate as profit
making commercialized enterprises shall operate as profit making commercialized
ventures without subvention from government.
Government
owned companies are companied hold, directed and controlled
by the government.
Monopoly
power: the excess of price over marginal cost is a measure
of monopoly power.
Private
sector according to giant paper back dictionary, private
sector is that part of a country‟s economy consisting of privately owned
businesses etc.1.8 PLAN OF THE STUDY
This project is carried out to investigate on the
‘effect of privatization and commercialization policy on national economic
development in Jigawa State’.
The
project contain five chapters, chapter one deals with general introduction,
background of the study, statement of the research problem, aims and objectives
of the study, research questions, significance of the study, scope and
limitation of the study, definition of key terms and plan of the study.
Chapter
two consists of literature review/ theoretical frame work of the project,
conceptual framework, and other things.
Chapter
three contains research methodology, introduction of the chapter, research design, Population of the study,
sample size, instrument of data collection, sampling techniques and procedure,
method of data analysis and collection.
Chapter
four consists of data presentation and analysis, introduction of the chapter,
data presentation, Demographic Data of the Respondent.
Finally,
chapter five of this project comprises the Summary, conclusion, and
recommendations, Bibliography and Questionnaire design.
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