THE IMPACT OF PRIVATIZATION ON THE ECONOMY DEVELOPMENT.

THE IMPACT OF PRIVATIZATION ON THE ECONOMY DEVELOPMENT.

ABSTRACT

Nigeria’s public policy thrusts over the years towards the socio-economic and political growth, development and sustainability of the system is largely bereft with abject lack of direction and vision. Hence, this research attempts a plethora of Privatization and National Development. Problems of inefficiency and mismanagement of public enterprise, has lead to the increasing desire for government to turn public enterprises into private enterprises. As a result of this outcome this project study is researching on the prospects on privatization and how it is going to affect the economy. This research work is carried out to also determine which public enterprise should be filly privatized or partially privatized, how profit maximizing would be the private enterprise be arid beneficial to the Nigeria economy. The study was conducted in Edo state within the context of Benin Electricity Distribution Company (BEDC). This comprises of the area in which the research study covered. The population of this research work consists of 480 workers of the fully privatized company -

TABLE OF CONTENT

Title Page                                                                                          ii

Certification                                                                                                iii

Dedication                                                                                         iv

Acknowledgement                                                                             v

Abstract                                                                                            vi

Table of content                                                                                vii

CHAPTER ONE 

 INTRODUCTION

1.1            Background of the study                                                                   1

1.2            Statement of the problem                                                                  2

1.3            Objective of the study                                                              2

1.4            Research Questions                                                                 3

1.5            Statement of Hypothesis                                                                   3

1.6            Significance of the study                                                                   4

1.7            Scope and limitation of the study                                            4

1.8            Limitation of the study                                                            4

1.9            Definition of terms                                                                            4

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1     Introduction                                                                           6

2.2 The concept of privatization                                                       7

2.3 Method of privatization                                                              8

2.4 Objective of privatization                                                           11

2.5 Benefits of privatization                                                             13

2.6 Privatization in Nigeria                                                               14

2.7 The impact of privatization on economic growth and development 16

CHAPTER THREE

RESEARCH DESIGN

3.1             Introduction                                                                                     18

3.2 Research design                                                                           19

3.3 Population of the study                                                              20

3.4 Sample size/sampling technique                                                  20

3.5 Methods/sources of data collection                                             21

3.6 Methods for data analysis                                                           21

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1            Introduction                                                                                      22

4.2            Data presentation                                                                              23

4.3            Test of Hypothesis                                                                            32

 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1            Summary of findings                                                               36

5.2            Conclusion                                                                              37

5.3            Recommendation                                                                    38

References                                                                                39

Appendix                                                                                42

Questionnaire                                                                          43

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In the era of post colonialism, Nigeria has at one time or another, embarked upon certain policies that have political economic implications. For instance, from 1960 to date, Nigeria has introduced indigenization and nationalization policy, operation feed the Nation (OFN), Austerity measure, structural adjustment programme (SAP), Deregulation of oil sector, Resource control Privatization and commercialization of public enterprises to mention but a few. The critical question here remains. How many of these policies have been able to restructure the political economy of Nigeria to the tune of alleviating the yearnings and aspirations of the working class.

The world no doubt is moving towards capitalization and any nation that is not moving towards this direction is seen as either not developing or even retrogressing. A capitalist economy is a free market economy which allows most economic decisions to be guided by the twin forces of demand and supply. Since capitalization discourages monopoly but encourages competitive market, it therefore enhances efficiency and high productivity which is very vital in any developing country’s economy. In Nigeria, most government owned industries and establishments remain citadels of corruption, studies in efficiency and consequently a heavy drain on the economy. As a means of curbing this menace, the Brettonwoods institutions (IMF & WORLD BANK) have advocated the twin policies of privatization and commercialization.

1.2 STATEMENT OF PROBLEMS

Privatization and commercialization of public enterprises is a vital tool for the upliftment of a country’s economy, more especially the developing countries like Nigeria. Regrettably, the problems facing this privatization and commercialization program is implementation of privatization policy and the administrator of privatization and corruption.

However, it is based on these problems that the basic propositions of this privatization and commercialization program are being hindered. In trying to look into these discrepancies and proffer a way forward towards a positive state of privatization and commercialization of public enterprises i