PRIVATIZATION AND COMMERCIALIZATION OF PUBLIC ENTERPRISES: PROBLEM AND PROSPECT (A CASE STUDY OF P.H.C.N ILORIN)

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Product Code: 00003182

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ABSTRACT

The term “purchasing” is widely used in industry, commerce, public corporation and management to denote the act, the function and responsibility for procuring materials, supplies and services.

The researcher is aware that most serious problem facing the world is the scarcity and the growing trend towards higher cost of materials and services. But it is amazing the purchasing, which can be so vital to an organization survival is still look upon it as little and not more than a clerical or routine activity.

Too many people assumed the function is just a simple exercise of processing requisition and placing order. Professional purchasing however is not a clerical task.

However, in narrow sense and considering the topic make-buy decision as an important tool for increased profitability, the term determine the need, selecting the supplies, arriving of proper price term and condition issuing the order, follow up to ensure proper delivery.

The basic element involved in the performance of this purchasing function of a coca-cola company plc, Ilorin are obtaining the proper equipment materials, supplier and services that are needed, where they are needed at the right time at the right price, in the right quantity and quality from the right source through minimum effort and cost taking into consideration make or by decision as an important tool for increased profitability at coca-cola company plc Ilorin


 

TABLE OF CONTENTS

Title Page

Certification

Dedication

Acknowledgment

Table of Content

CHAPTER ONE

1.0      Introduction

1.1      Background Of The Study

1.2      Statement Of The Problem

1.3      Aims And Objectives Of The Study

1.4      Scope Of The Study

1.5      Significance Of The Study

1.6      Limitation Of The Study

 

CHAPTER TWO

2.0      Literature Review

2.1      Reason for the Establishing of Public Enterprises

2.2      Rational for Privatization and Commercialization in Nigeria

2.3      Privatization And Commercialization Program In Nigeria

2.4      Technical Committee on Privatization And Commercialization Act of (1988) (TCPC)

References

CHAPTER THREE

3.0      Historical Overview of P.H.C.N

3.1      Research Methodology

3.2      The Instrument Used in Data Collection

3.3      Method of Data Analysis

3.4      Research Methodology

3.5      Statement of Hypothesis

CHAPTER FOUR

4.0      Presentation and Analysis of Data

4.1      Presentation of Data

4.2      Analysis of Data

4.3      Problem Associated With The Privatization And Commercialization of P.H.C.N

4.4      The Prospect Associated With Policy

4.5      Testing of Hypothesis

4.6      Finding

CHAPTER FIVE

5.0      Summary, Conclusion and Recommendation

5.1      Summary

5.2      Conclusion

5.3      Recommendation

References





 

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

In recent times, in their effort to manage their resources more efficiently for maximum growth and development. Most countries have started to question the wisdom of investing so much in their public sector from which not much returns in terms of efficient supply of goods and services or profit ability or both could be good. However, privatization and commercialization have for long been and still remains a highly controversial topic in Nigeria. To be or not to be? This project is aimed at examining the concept of privatization and commercialization of Nigeria public enterprises, the problems associated to its implementation and its prospect.

Privatization is a global phenomenon it is basically transfer of state owned investment to the private sectors through sales or others means while commercialization is the reorganization of enterprises wholly or partly owned by the government in which such commercialized enterprises shall operates as profit ventures and without subvention from government. Such enterprises would use private sector procedures in the management of their business.

Globally, the economic crisis of the 1980 created serious problems must especially in the developing countries. This lead to the emergence of a feeling among policy makers and economic planners that have intensified the strive towards efficient and competitive domestic economic structure so as to achieve sustainable growth and development and therefore improve economic standards. Among the measure adopted in the early 80’s economic reform includes:

-      Expansion of market: oriented structure in production distribution and consumption

-      Elimination of reducing of state control over prices personal and other management decision

-      Adoption of a realistic and completive exchange rate.

-      Freeing the interest rate market from unnecessary intervention from regularly authorities.

Following this global trend ever 70 countries have undertaken one from of economic reform or another with the dominant feature being privatization and commercialization of major economic enterprises. The privatization of public enterprises is informed b y the need to run public especially in government monopolies have some motivation that made privatization and commercialization process an acceptable solution to problem of essential public infrastructure. In PHCN dynamic in particular better management process, faster corporate response to emerging changes and challenges, dynamic business orientation are some of the key motivating, programmatic attitude to business training, customer relations, competitions flexible market-driven investment focus, acquisition of up to date tools and attraction of local and foreign investment are also some of the key motivation to privatization. While privatization and commercialization program me has its strengths, some times has exposed since the advent of privatization and commercialization in Nigeria and it is known that the policy faced up to some problem in its implementation such as :

-      First and foremost, they delay problems. There are considerable delays between the data privatization and commercialization decision was taken and the take-off date for example privatization programme, drew up a timetable using public enterprise that are going to be privatized under three phase. Phase one and two were stated to be privatized between July 2000 and June 2002. Companies under phase three those in the power and petrochemical. The privatization of those sectors was schedule for January 2002 to December 2003. Yet all that should have been concluded by these years has been in the cold.

-      Secondly, several labour unions perceive of the policy as anti-labour. This is because, the implementation of the programme necessitate some rationalization and restricting which may eventually result in massive retrenchment many people especially those in the labour movement believe that privatization and commercialization may reduce employments particularly in the affected enterprises.

-      Thirdly, in accessibility to credit problem. A fast of equity share-holders are short of funds for processing their application forms many Nigerians do not have enough money to meet their immediate needs let alone have savings to invest. In such circumstances it not unlikely only the well to do people would have funds to invest in the affected enterprises.

-      Fourthly, some officials of the former supervisory ministries see the programme as plan to reduce their power over public enterprises sectors.

-      Last but not the least; it may counter undue advantages on some sectors of the Nigeria community. Nigeria is a country where economic wealth, political power industrial locations are not evenly spread, privatization and commercialization may give undue advantages to some sectors.

With these itemized problems of implementation of privatization and commercialization policy above the far are not altogether unfounded hence for reaching measure have been exercise. For instance, privatization of P.H.C.N rather a number of companies engage in the generation and distribution of will power emerge.

1.2 STATEMENT OF THE PROBLEM

The focus of this study by the researcher is to identify the privatization and commercialization of public enterprises problems and prospects. Hence, in the course of the study, effort has been made to find solution the following research problem.

a.  What are the problems associated with the privatization and commercialization of P.H.C.N

b.   What are the prospects associated with the policy?

c.   What is the historical background of P.H.C.N

d.  What are rational for this policy implementation?

e.   What are the meaning of privatization and commercialization

f.    What is the impact of privatization and commercialization on the economy?

g.  The roles privatization and commercialization of Nigerian industry?

 1.3 AIMS AND OBJECTIVES OF THE STUDY

     The study has to examine the problem and prospect of privatization and commercialization public enterprises taking power holding company as case study. The objectives of the study are:

a.   To examine the problems associated with privatization and commercialization of P.H.C.N

b.   To discuss the prospect associated with the policy

c.   To examine the historical back ground of P.H.C.N

d.  To examine the rational for the policy.

e.   To define the meaning of privatization and commercialization

f.    To highlight the impact of privatization and commercialization of Nigeria industry.

g.   To assess the roles of privatization and commercialization of Nigeria industry

1.4 SCOPE OF THE STUDY

The research work has limited to the scope of privatization and commercialization of Nigeria public enterprises especially P.H.C.N as a case study. It covered the introduction which examined the historical origin of P.H.C.N in the country. It will also looking at the problem cofounded in privatization and commercialization the sectors (P.H.C.N).

Importantly, the research spaced as spend a lot of time to examine supply and demand imbalance. In conclusion, the researchers summarized all he had done and gave useful recommendation and based on the research work on how best privatization and commercialization of P.H.C.N can develop and Nigeria industry as a whole.

 

1.5 SIGNIFICANCE OF THE STUDY

      The significance of this study is to:

-      Serve as database for federal government toward privatization public sector in order to ensure a well developed economy.

-      It is also to help private enterprises on how they can perform in terms of services rendered.

-      Serve as reference materials to researchers and haps P.H.C>n planners derive useful materials for planning purpose.

1.6 RESEARCH METHODOLOGY

The researcher work on privatization and commercialization of Nigeria public enterprises. especially P.H.C.N, the researcher has made use of both primary and secondary source of data.

The primary data employed include questionnaire and interview while secondary data include textbook, internet journals etc.

        The population research is basically the stuff of P.H.C.N while both descriptive and inferential statistic has been employed to present and analysis the delta collected.

1.7 STATEMENT OF THE HYPOTHESIS

The general hypothesis to be tested in this study is as following:

Ho: privatization and commercialization of public enterprises has no prospect.

Hi: privatization and commercialization of public enterprise has present.

 

 

1.8 ORGANIZATION AND PLAN OF THE STUDY

The research work has been divided into five chapters for each presentation of the fact and figures gathered.

Chapter One contains the introduction, background, statement of the problem, aims and objectives, scope of the study, significance of the study, research methodology, statement of hypothesis and plan and organization of the study.

Chapter Two treats past literature review, research for establishment of public enterprises, rational for commercialization and privatization in Nigeria, privatization and commercialization program in Nigeria, technique committee on the program.

Chapter three consists of the historical overview of P.H.C.N, research method, the instrument used in data collection, method of data analysis and limitation of the study.

Chapter four discusses the presentation and analysis of data, problems associated with the privatization and commercialization of P.H.C.N, the prospect associated with policy and testing of hypothesis.

  Chapter five throw light on summary, conclusion and recommendation.

LIMITATION OF THE STUDY

On the course of this research the following problems were encountered like short time frame financing problem scarcity of information or data must especially from the management of P.H.C.N etc. This is due to mainly the wide scope of the study which emphasizes on a complex institution like Nigeria again enough financing of the accomplishment of this work become a problem in the sense that gathering information was costly the researcher needed enough money together then.

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