IMPACT OF COMMERCIALIZATION ON THE NIGERIA ECONOMY

IMPACT OF COMMERCIALIZATION ON THE NIGERIA ECONOMY

ABSTRACT

The study examines the association with commercializing enterprises in Nigeria. In addition, it seeks to investigate the reason for commercialization public enterprises in the country. Firstly, the chapter 1 of this work focuses on the background, problems, objectives, hypothesis, significance, scope and limitations of the study of commercialization. Secondly, chapter 2 of this work is geared towards the literature review of other scholars on the concept of commercialization in the Nigeria economy. The chapter 3 of this research tells about the research design and methodology adopted during the research of this work. The chapter four also implies the presentation and analysis of the result gathered during the research. It interprets the result. Finally, the fifth chapter summaries he findings and concludes on the concepts. It also gave recommendation on the concept “commercialization”.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The ultimate goal of any credible and legitimate government is to ensure sustained improvement in the standard of living of the citizenry. Toward this end, the government usually evolves development plans that will facilitate effective mobilization, optimal allocation and efficient management of national resources. In such efforts, priority is usually given to the provision of development facilitators, such as transportation and communications as well as social overhead, such as education and health. Drawing on the successful experience of most developed economies, all developing countries have also adopted a similar development process. In addition for several reasons such as the small size of the private sector or for the so called “security reasons”, the development process had seen largely dominated by the public sector available evidence suggests that this public sector dominated process has not achieve the desired impact over time prominent among which is the lack of an inclusive framework on the consequent with alienation of the people from the public policy process. This, coupled with recent development in the globalizing world, have precipitated the clamour for comprehensive national economic reforms that will facilitate more efficient macroeconomic management and thereby steer the economy back on to the path of sustainable grow and development.

The major components of this reform are the deregulation that argues well for the promotion of a private sector-led economy. This was informed by the assumption that the private sector is more efficient in the allocation of resources and that this level of efficient will be enhanced in a competitive environment emanating from the deregulation of the economy. This implies that the reliance on the market rather than the state is the accepted a notate against the problem of underdevelopment in affected economies. The commercialization of State Owned Enterprises (SOE) is the major strategy for obliterating the culture of public sector domination of the economy. Nigeria is committed to following the footsteps of several countries that have embarked upon the commercialization of the national economy. The scope of the nation’s commercialization program covers several sectors, including banking and finance, oil and gas, telecommunication, manufacturing, hospitality and tourism and others.

The commercialization train has now arrived into the utility sector and it is operating at varying degrees within the sub-sectors therein. Given the criticisms that have trailed the implementation of the commercialization programs in other sectors, it appears timely to evaluate the commercialization process of the nation’s utility sector. This with a view of ensuring compatibility of the new policy orientation with the overall goal of poverty alleviation through wealth creation and sustainable development, rather than focusing on growth as an end by itself. It will also facilitate a pro-action framework towards ensuring a pro- commercialization of the utility sector in Nigeria, with special emphasis on power and telecommunication which are necessities for economic growth and development. 

1.2  STATEMENT OF PROBLEMS

Commercialization of public enterprises is a vital tool for the upliftment of a country economy more especially. The developing countries like Nigeria. The problem facing commercialization to the growth of Nigeria economy will be looked into: problems like corruption, lack of transparency, lack of accountability, in consistency and incredibility. However, it is on these problems that hundred of the government to seen the growth on which commercialization and commercialization public sector would bring to Nigeria economy. In trying to look into the effect of commercialization effect to the growth of the economy and proffer a way forwards a positive state of commercialization of public enterprises in Nigeria this research work emanated.