THE IMPLICATION OF PRIVATIZATION ON NIGERIA ECONOMY. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
This project titled “PRIVATISATION – AS A MEANS OF SOLVING NIGERIA ECONOMIC PROBLEMS” (A CASE STUDY OF NEPA) is aimed at determining how privatization could lead to societies of Nigeria’s economic problems. The fact that transferring non-performing public enterprises to the private sector would eliminate corruption mismanagement, improve efficiency and technology under serves the significant of the study, as fund, that would have been committed to maintenance of otherwise inefficient enterprise have been free into more productive sector of the economy.
In the course of the study, three (3) hypothesis was tested using chi-square (X2). A sample size of 150 respondents was used. Distribution of questionnaire to these sample sizes was by a simple random sampling, it was discovered that gave support for privatization enterprises like NEPA to improve efficiency as a way of solving our economic problem.
It was recommend among other things that government should device a means that would enable the poor one to buy share in the enterprises being privatized. In view of what has been achieved by the study. It was concluded that it will implemented, privatization would lead to our economic recovery.
From the colonial days through the period of our independent, to early 80’s, public enterprise thrived in their functions. The government established these enterprises in the country for some reasons including government intentions to retain control on behalf of the citizens, the commanding heights of the economy as epitomized by its investments in energy, communication and other important sections. It also wished to stand market failures, engender regional development, enhance job creation capacities as well as social services delivery.
Unfortunately, as years progressed the objective of government in establishing these public enterprises where to come to nothing as the enterprises were riddle with corruption, mismanagement, over-dependences on the treasury for funding, poor service accountant by the arrogance and arrogance and insensitivity of the managers of these enterprises as well as inequities brought about by nepotism (El-Rafai, 2000). These public enterprises began to perform below the expectation of the reason for its establishment, such enterprises as Nigeria Air Ways Nigeria Railway Corporation (NRC), Nigeria Coal Corporation (NCC) the National Electric Power Authority (NEPA), gradually witnessed, obsolete facilities, corruption, mismanagement, resulting in poor service delivery huge debt of salaries and wages pension and so on.
In an effort to put state enterprises back to its former glory, government committed billions of naira to rehabilitate them which resulted in fruitless effort was most of them today has collapsed. As a result of government huge financial investment in these arriving industries, it has failed in fulfilling it primary objectives, which is the provision of infrastructure and security through the maintenances of law and orders as well as promotion of enabling and conducive economic environment.