THE IMPACT OF PRIVATIZATION ON THE NIGERIAN ECONOMY.

THE IMPACT OF PRIVATIZATION ON THE NIGERIAN ECONOMY.

ABSTRACT

This paper examines the outcome of privatization in the Nigerian economy within the context of a globalized economic system and against the supposed inefficiencies of state owned enterprises. It argues that the privatization process in Nigeria as in other developing countries represents among other characteristics a new phase in the export of capital from the advanced countries. Having examined some key economic variables, the paper further argues that the privatization process has not resulted in any significant improvement in the Nigerian economy. Data gathered for this study was from secondary sources and were treated and analyzed by the use of descriptive statistics, with quantities appearing in tables and percentages.(Reduce the abstract to 100 words or less)

TABLE OF CONTENT

Title page                                                                                                                  ii

Certification                                                                                                                         iii

Dedication                                                                                                                iv

Acknowledgement                                                                                                  v

Abstract                                                                                                                     vi

Table of content                                                                                                      vii

CHAPTER ONE

1.1             Background of the study                                                                            1         

1.2             Statement of the problem                                                                                     3

1.3             Objective of the study                                                                                3

1.4             Scope of the study                                                                                      4

1.5             Limitation of the study                                                                               5         

1.6             Significance of the study                                                                            5         

1.7             Definition of terms                                                                                      6

CHAPTER TWO

2.1             An overview of privatization in Nigeria economy                            9

2.2            What is privatization?                                                                               11

2.3            Reasons for privatization                                                                         13

2.4            Method of privatization                                                                           15

2.5            Advantage and disadvantage of privatization                                              17

CHAPTER THREE

3.1        Methodology                                                                          25

3.2        Design of the study                                                                25

3.3        Area of the study                                                                    20

3.4        Population of the study                                                                   20

3.5        Sample size of the study                                                        21

3.6        Method of data collection                                                       21

3.7        Method of data analysis                                                                   23

CHAPTER FOUR

4.1        Introduction                                                                                                             24

4.2        Presentation of data                                                                                   25

4.3        Research questions                                                                                     27

4.4        Research findings                                                                                        29

CHAPTER FIVE       

5.1        Summary                                                                                                       31

5.2        Conclusion                                                                                                    32       

5.3        Recommendation                                                                                        33       

References                                                                                                             34       

Appendix                                                                                                                 35

Questionnaire                                                                                                        36

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Privatization refers to the reduction or total withdrawal of public sector intervention in economic activities. It involves the relinquishment of part or all of the equity and other interest held by the government or its agency in enterprises whether wholly or partly owned by the government, the reduction in state provisions, reduction in state subsidies and reduction in state regulation of industries (enterprise). Privatization may therefore be full (total) or partial. For reasons of transparency and credibility, as well as widespread share ownership, the popular trend has been of divest through the stock market and as such, the Act gave preference to the capital market as a divestment vehicle, with government divesting its holding through the market. Thus, enterprises which met the criteria of the stock market were divested through it. The privatization and commercialization programme of the government has provided new opportunities (which never existed before for individuals, organization and government in and outside Nigeria to buy and sell securities.

          However, with this chosen channel of divestment, experience has also shown in Nigeria that privatization has increased the activities of the Nigerian stock market as well as broadened and deepened the stock market in a number of ways.

          This research is aimed at examining the impact of privatization on the stock market development in Nigeria with a view of focusing on the degree of awareness and innovation engendered into the capital market by the policy, in relation to the Nigerian stock market.

          The thesis is equally aimed at discussing such topic like privatization, the Nigerian