ABSTRACT
This project
titled “PRIVATISATION – AS A MEANS OF SOLVING NIGERIA ECONOMIC PROBLEMS” (A
CASE STUDY OF NEPA) is aimed at determining how privatization could lead to
societies of Nigeria’s economic problems.
The fact that transferring non-performing public enterprises to the
private sector would eliminate corruption mismanagement, improve efficiency and
technology under serves the significant of the study, as fund, that would have
been committed to maintenance of otherwise inefficient enterprise have been
free into more productive sector of the economy.
In the course
of the study, three (3) hypothesis was tested using chi-square (X2). A sample size of 150 respondents was
used. Distribution of questionnaire to
these sample sizes was by a simple random sampling, it was discovered that gave
support for privatization enterprises like NEPA to improve efficiency as a way
of solving our economic problem.
It was
recommend among other things that government should device a means that would
enable the poor one to buy share in the enterprises being privatized. In view of what has been achieved by the
study. It was concluded that it will
implemented, privatization would lead to our economic recovery.
TABLE OF CONTENTS
Cover page
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
1.0
Introduction
1.2
Objective of the study
1.3
Significance of the study
1.4
Statement of hypothesis
1.5
Scope of the study
1.6
Limitation of the study
1.7
Definition of terms
CHAPTER TWO
2.0
Review of related literature
2.1 Privatization, meaning & background in Nigeria
2.2
The impact of privatization to Nigeria economy
2.3
Privatization of NEPA, its consequences to nig economy
CHAPTER THREE
3.0
Research design and methodology
3.1 Sources of data
a. Primary
data
b. Secondary
data
3.2
Sample use
3.3
Method of investigation
CHAPTER FOUR
4.0
Data presentation and analysis
4.1 data presentation and analysis
4.2 test of hypothesis
CHAPTER FIVE
5.0
Summary of finding, conclusion and recommendation
5.1 Findings
5.2
Conclusion
5.3
Recommendation
Bibliography
Appendix
(Questionnaire)
CHAPTER ONE
1.0 INTRODUCTION
From the colonial days through the
period of our independent, to early 80’s, public enterprise thrived in their
functions. The government established
these enterprises in the country for some reasons including government
intentions to retain control on behalf of the citizens, the commanding heights
of the economy as epitomized by its investments in energy, communication and
other important sections. It also wished
to stand market failures, engender regional development, enhance job creation
capacities as well as social services delivery.
Unfortunately, as years progressed
the objective of government in establishing these public enterprises where to
come to nothing as the enterprises were riddle with corruption, mismanagement,
over-dependences on the treasury for funding, poor service accountant by the
arrogance and arrogance and insensitivity of the managers of these enterprises
as well as inequities brought about by nepotism (El-Rafai, 2000). These public enterprises began to perform
below the expectation of the reason for its establishment, such enterprises as
Nigeria Air Ways Nigeria Railway Corporation (NRC), Nigeria Coal Corporation
(NCC) the National Electric Power Authority (NEPA), gradually witnessed,
obsolete facilities, corruption, mismanagement, resulting in poor service
delivery huge debt of salaries and wages pension and so on.
In an effort to put state
enterprises back to its former glory, government committed billions of naira to
rehabilitate them which resulted in fruitless effort was most of them today has
collapsed. As a result of government
huge financial investment in these arriving industries, it has failed in
fulfilling it primary objectives, which is the provision of infrastructure and
security through the maintenances of law and orders as well as promotion of
enabling and conducive economic environment.
Against this back background, it
became a national policy imperative to disengage government from wasteful
investment by taking public sector away from these areas where the private
sector has the comparative advantage to perform, while letting the state
concern to thrive through enhanced wealth creation. To achieve these purpose the federal
government started a process of privatization and commercialization since
1988. The programme would ensure the
inflow of investment, management and technology that would improve and grow the
nation is infrastructure services and industries for the benefit of the people.
Privatization involves transfer of
ownership of enterprises between the government and the private sector. This implies that the predominant share in
ownership of assures on transfer lies with private shareholders. Mostly, developed countries of the world,
such as Britain, United State of American (U.S.A) with sound economic base has
their economic growth hinged on private sector through privatization. Britain has about 90% of their economy in the
private sector. The same is USA which is
believed to have the world most privatized economy. Therefore, for Nigeria to integrate its
economy into the main stream of world economic order, it must embark on
privatization.
Dues to the misconceptions,
conflicts and debates generated by privatization in Nigeria, to writer was
moved to embark on this project entitled.
Privatization – as a means of
sowing Nigeria Economic problems (with NEPA as a case study) this is with a view
to highlighting its need for our economic growth.
1.1 PROBLEMS OF THE
STUDY
In Nigeria public sector has been riddle with corruption,
mismanagement, inefficiency, poor service delivery, lack of up to date
technology, indolent staff, lack of maintenance. The National Electric Power Authority (NEPA)
as one of the public enterprise has been bedeviled with these
shortcomings. The Epileptic power
supply, manor and resources wasted by the electric users as a result of lack of
power supply has been a source of worry to enable citizen of the matter.
How could power supply be
improved? What would eliminate
corruption on the part of NEPA personnel’s?
How could the over dependent of this sector treasury be eliminated? What would ensure completion efficiency,
improved service delivery and up to date equipment? How could regular power supply be
ensured? What would bring to an end?
1.2
OBJECTIVES OF THE STUDY
The objective of this study include.
1.
To
find out why public enterprises has failed in performance when compared to
private enterprise.
2.
To
correct the misconceptions on privatization of public enterpriser.
3.
To
re-orientate the kinds of the people on how privatization could reduce,
corruption, mismanagement, inefficiency and improve technology.
4.
To
identify hindrances to privatization.
5.
To
highlight the advantages of privatization to Nigeria economy.
6.
To
recommend how a successful handing over of public enterprises to private sector
could be achieved.
7.
To
present a platform for researchers and knowledge seekers on privatization.
1.3 SIGNIFICANT
OF THE STUDY
This study is very important now the government is
seriously committed to the privatization programmed. By this study, people would see reason to
give their support to the privatization process, moreso, by having a successful
privatization of major public enterprises such National Electric Power
Authority (NEPA). It would broaden
Nigeria capital market and created large body of shareholders. In the process of privatization, more
investible capital will be injected into the various economics through local
and foreign investors to the benefit of the country at large. Also, funds that would have been committed to
maintenance of otherwise inefficient enterprises have been freed into more
productive sectors of the economy.
1.4 STATEMENT
OF HYPOTHESIS
The following are the hypothesis of
the study
HYPOTHESIS 1
H0: Privatization is not a genuine and
programmatic approach to revitalization of Nigeria economy.
H1: Privatization is a genuine and programmatic
approach to revitalization of Nigeria economy.
HYPOTHESIS 2
H0: Privatization has not lead to the financial
independence of a company.
H1: Privatization has lead to the financial
independence of a company.
HYPOTHESIS 3
H0: Privatization of NEPA has not improved productivity,
efficiency, management and adequate utilization of the resources of the
organization.
H1: Privatization of NEPA has improved
productivity, efficiency, management and adequate utilization of the resources
of the organization.
1.5
SCOPE OF THE STUDY
The scope of the study is to examine
the general principles of privatization and how it could help to improve
Nigerian economy. It does not cover the
technical implantation of privatization programme. The area of coverage is NEPA Enugu District.
1.6
LIMITATION OF THE STUDY
In the course of the study, the
researcher encounters some difficulties, which constitute some limitations to
the study. These includes:
i. Time: Due
to short period needed to complete the project from the time of its approval,
the researcher could not do a through work as intended.
ii. Finance: The money required by the researcher
for transportation to various place required, gathering of literal material and
for type setting and well as binding in short supply.
Data collection/literal materials. Reference materials needy for the study was
not easy to come by as most of the document were mostly classified
document. Some of the respondents were
not willing to co-operate with the researcher during the time of data
collection. It was not easy to interview
the district manager and the chief accounts of NEPA Enugu District.
Nevertheless, despite the above
limitations, the researcher tried to lift her head above the obstacles and did
a good work within the time and resources available to her.
1.7
DEFINITION OF TERMS
Some definition of terms as used in
the study were as below.
a. Authority: It means
power or right to give order and make others to be obeyed.
b. Commercialization: This
is concerned with the reform of public enterpriser to achieve high efficiency
and productivity, without change of ownership.
c. Electric: This means all the phenomena
associated with electrons (negative charged) and proteins (positive charge, the
study of these phenomena).
d. Privatization: This
means transfer of ownership of enterprise between the government and the
private sector.
e. Problem: This stands for questions to be solved
or decided.
f. Public: The citizens of people of a country.
g. Public
enterprises: This means any
corporation, board, company or parastatal established by or under any enactment
in which the government federation has ownership or equity interest.
h. Strategic
investor: It means a reputable
core investor or group of investors having the requisite technical expertise,
the managerial experience and financial capacity to effectively contribute to
the management of the enterprises be privatized.
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