Privatization And Commercialization Effect On Nigerian Economy

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENT

CHAPTER ONE

1.0 BACKGROUND OF THE STUDY

1.1 STATEMENT OF PROBLEMS

1.2 OBJECTIVE OF THE STUDY

1.3 SCOPE OF STUDY

1.4 DEFINITION

CHAPTER TWO

2.0 REVIEW OF RELATED  LITERATURE 

2.1 GOVERNMENT EFFECT TOWARDS THE POLICY

2.2 COST OF PRIVATIZATION AND COMMERCIALIZATION

2.3 EFFECT ON PRIVATIZATION

2.4 EFFECT ON COMMERCIALIZATION

CHAPTER THREE

3.0 SUMMARY OF FINDINGS AND 

3.1 RECOMMENDATION

 BIBLIOGRAPHY

An unintended consequence of the indigenization exercise

is the need to privatize and commercialize government owned enterprises.

At the inception of the indigenization exercise, the intention of the government was to enable the citizens to control the commanding heights of the economy.

 However, in the course of implementation, government become an active purchaser of these enterprises formerly owned by aliens.  This action became possible because of the sudden government’s opulence created only the oil boom wealth of that decade.  Government was not only involved in the acquisition of foreign owned enterprises but also dedicated to establish new ones.  In the 80’s how ever, there was negative down turn in the nation’s economic fortune and government was no longer able to fund these state owned enterprises adequately.

 Furthermore, there are acute manifestation of managerial inefficiency in the way and manners these state owned enterprises were being administered.  Thus, enterprises which were supposed to e revenue generating ventures became government problem children which require massive financial investment before they can survive.  It was against this background that the Federal Government decided to privatize and commercialize these enterprises and this decision was put into operation by the promulgation of Decree No.25 of 1988.  The Decree aimed at privatizing and commercializing certain public enterprises.  The Decree also made provision for the establishment of a Technical Committee on Privatization and Commercialization (TCPC) whose major functions include: -

i. advising on the capital restructuring need of enterprises listed for privatization or commercialization

ii. carrying out-public issues of shares for the listed enterprises

iii. consulting with the security and exchange commission on the need for the shares to be issued

iv. advising the Federal Government on the allotment pattern for the shares to be issued

v. overseeing actual sales of shares and 

vi. preparing proposals for the sale of government shares in these enterprises for the approval of the Federal Government.