PRIVATIZATION AS A VIABLE TOOL FOR ECONOMIC DEVELOPMENT IN NIGERIA (A CASE STUDY OF M.T.N IN ILORIN)

TABLE OF CONTENTS

CHAPTER ONE

1.0        Statement introduction

1.1        Background of the study

1.2        Statement of problem

1.3        Aims and Objectives of study

1.4        Significance of study

1.5        Scope and study

1.6        Limitation of study

1.7        Statement of study

1.8        Research method

1.9        Plan of study

1.10      Definition of the terms

CHAPTER TWO

2.0        Literature Review

2.1        Concept of Privatization

2.2        Benefit of Privatization

2.3        Privatization and Economic

2.4        Problem of Privatization

CHAPTER THREE

3.0        Research Design

3.1        Method of data collection

3.2        Questionnaire

3.3        Nature of data Analysis

3.4        Questionnaire Administration

3.5        Test of hypothesis

CHAPTER FOUR

4.0        Data Presentation and Analysis

4.1        Data Presentation

4.2        Data Analysis

4.3        Summary of Findings

CHAPTER FIVE

5.0        Summary Conclusion and Recommendations

5.1        Summary of Findings

5.2        Conclusion

5.3        Recommendations

5.4        Suggestions for further studies

CHAPTER ONE

1.0       INTRODUCTION

The idea of privatization dates back to the position articulated by the classical economist who assumed that there exists unerring pendulum that always tend towards equilibrium as the interaction of the market forces; demand and supply are believed to be capable of regulating the economy.

The move towards economic development has been the key aim of the Nigeria government since independent. However, the methodology of attending this rapid structural growth and development has been a problem to this extent, Nigeria since independence has been adopting different tactics towards development but, the implementation has been a problem. Besides, the use of state power, authority and resorts as to promote the economic well being of individuals and groups in society was introduce by the government.

All over the word, the public service as a matter of fact, here not been known for the capacity to create wealth. Meanwhile public enterprises have usually been perceived as drain pipes for government budgets, this creating budgeting constraints and avoidable burden on the economy.

Attention which has been focused on the poor service delivery and inefficiency, financial waste and poor management and other sundry problems have cause irreparable damage to workers and organization goal of efficiency and effectiveness. It becomes a national policy sector from the areas where the private sector has the comparable advantage to perform, while letting the data concern itself with the provision of infrastructure, thrive through enhanced wealth creation.

In the case of Kwara state, the issue of mismanagement and under utilization which led to hugs waste of resources and man power potentials pave the government of the day number. Other option but, to pursue quickly the privatization programme privatization is an economic policy, which entails the transfer of ownership or control of public enterprises into private hand via government divestment and sales of shares.

However, this involves the private participation in the management and operation of public enterprises.

Privatization is the vehicle for restructuring public enterprises, deregulation and major economy reforms. It attracts foreign capitals through core foreign investors, foreign equity participation and injection of new technology

Privatization aims to achieve efficiently, increase productivity and economic growth, which will enhance for capital income and standard of living. The private sector in Nigeria has developed sufficiency known.

How to be able to take care of investment, financial and capital market are also sufficiency developed to be able to play the role of expected of them. The predominant argument about privatization is on doing things which private operators should concentrate on doing things which and monetary policies. Another side of the argument is the need to inject additional funds into the economy from non government source. There is need for government to face the problem of dwindling foreign exchange reserves and heavy external debt. The fear should be erased from their mind because privatization has the effect of changing the raise of employment opportunities and also can bridge the gaps between the rich and poor. One of the public enterprises with government 100% equity stated from full privatization is the Nigeria M.T.N limited

1.1       BACKGROUND OF THE STUDY

Nigeria M.T.N sector has gone through metamorphosis since the colonial era M.T.N facilities in Nigeria were first established in 1880 by the colonial administration and these were geared towards discharging their administration function rather than provision of socio-economic development of the country.

As at independent in 1920, the total number of telephone lines was only 18,724. for a population estimated at about 40 million people.

This translated to a teledensity of about 0.5 telephone lines per 100 people. The telephone network consists of 121 exchange automated between 1960 and 1985. The M.T.N (P&T), where as P&T provided the internal network service, the national external M.T.N (NET) provided the external services. The installed switching capacity at the end of 1985 was about 260,000 lives as against the planned target of about 460,000 lines, and all the exchanges were analogue.

Telephone penetration remained poor at one telephone lines to 440 inhabitants recommended by the Internal and Telephone Union (I T U). for developing countries, congested and customer unfriendly, as a result of these, in January 1985, the east while P&T and Net were merged to form Nigeria M.T.N limited (NITEL), while a postal division was carried out and reconstituted into the Nigeria postal service (NIPOST). There has been a modest development in the M.T.N industry since the inception of NITEL 1985 with a public network of about 800,000 lines capacity as at date. In 1992, the M.T. created new entrants into the market as private telecommunication operations (PTO), their company such as multi links, and interconnectivity agreement with NITEL. A new down has just set in with licensing of MTN, ECONET, GLOBACOM and NITEL as providers of Global system of mobile (GSM) communications in January 2001. While the GLOBACOM launched their own services in April 2003.

With the deregulation of telecommunication sector by Nigeria the country has therefore with massed increased activity in the sector. The sector has proven to be a catalyst for the growth and development of other sector of the economy. However, the deregulation is only a prelude eventual privatization of the state owned NITEL.

1.2       STATEMENT OF PROBLEM

This research finding is aimed at diagnosing the problem where in the public enterprises which precipitated privatization. There is also the need to evaluate the current privatization exercise of Nigeria MTN limited as a result of the ineffectiveness of the sector to provide a better and satisfactory service for the subscribes. This will be done with the view of determined how effective the exercise is in the MTN industry in terms of being the catalyst of industrial and economic development of any nation.

1.3       OBJECTIVES OF STUDY

The main objectives of study include the following;