PRIVATIZATION AND COMMERCIALIZATION OF PUBLIC ENTERPRISES IN NIGERIA AN APPRAISAL OF TELECOMMUNICATION
Abstract
It is because of social issues like economic inequalities, unemployment that made the state to interfere in economy of Nigeria. Government
chose public sector as a means or medium for economic and social development due to poor managerial skill, weak technological base etc,
this enhanced the zeal to establish various enterprise institutions in Nigeria. Then, due to inadequate capital and lack of finance, public
enterprises in Nigeria are confronted with many problems by the employees, managers and political interference in affairs of public
enterprises. The project title is privatization and commercialization of public enterprises in Nigeria: An appraisal of telecommunication. The
problems are; is political interference and mismanagement of resources responsible for the poor performance of public enterprises in
Nigeria? Could privatization and commercialization enhance the efficiency of public enterprises? Structural-functional theory is used as
suitable framework of analysis for privatization and commercialization of public enterprises in Nigeria. The researcher reviewed some
relevant textbooks, also used the secondly method of data collection. He found out that privatization is seen as means to harness economy
or as measure to increase efficiency of the public sector or organization. Also, the privatization and commercialization has improved the
potential, the efficiency and service delivery in Nigeria by making telecommunication easily accessible and adorable. These are the
recommendations; as the privatization is in the hands of few individuals government should ensure that before granting the license or
opportunity, they should examine and select the competent people who will handle private enterprises and not people of questionable
character. The only thing left is for government to hands – o from those enterprises as advocated in the current or present privatization
and commercialization exercises.
Table of Contents
Titled Page
Abstract
Table of Content
Chapter One: General Introduction
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objective of the Study
1.4 Significance of the Study
1.5 Literature Review
1.6 Theoretical Framework
1.7 Hypothesis
1.8 Method of Data Collection/Analysis
1.9 Scope of the Study
1.10 Definition of the Concepts
References =
Chapter Two: Origin of Public Enterprises in Nigeria
2.1 Origin and Development of Public Enterprises in Nigeria
2.2 Justification for Public Enterprises
2.3 Financing and Control of Public Enterprises in Nigeria
2.4 Problems of Public Enterprises in Nigeria
References
Chapter Three: Policy of Privatization in Nigeria
3.1 History and Development of Public Enterprises in Nigeria
3.2 Objectives and Forms of Privatization
3.3 Necessary Conditions for Success of Privatization
3.4 Process of Commercialization in Nigeria
References
Chapter Four: An Appraisal of Telecommunication
4.1 History of Telecommunication in Nigeria
4.2 Policy Objectives
4.3 The Structure of Nigeria’s Telecommunication Sector
4.4 Privatization and Commercialization of
Telecommunication in Nigeria
References
Chapter Five: Summary, Conclusion and Recommendations
5.1 Summary
5.2 Conclusion
5.3 Recommendations
References
Bibliography
Chapter One
Introduction
1.1 Background of the Study
The importance for the establishment of public enterprises or corporations was felt in 19th Century and there after. There were a lot of
upheavals in European society because of industrialization and urbanization. Social issues like unemployment and economic inequalities
necessitated state intervention in economies. Britain is widely referred to as the father of public enterprises.
A good number of African Countries chose the public sector for economic and social development. This account for the reason why
many more functions like industrial production, transport, social services, communication etc were assigned to the state in addition to its
traditional functions like security, justice etc.
Despite the several exercises of Nigeria economic policies to promote agriculture, industries and other activities, government still
depend on mono-culture commodity (oil) which failed to provide good capital investment and development due to weak technological
base, poor managerial skill etc. This promoted or enhanced the desire to establish various enterprises and massive establishment of
government agencies and institutions. 1979 constitution of Nigeria described the official operating of these enterprises and public servants
they managed as well as private enterprises. After reviewing the performance of the Nigeria Railway Corporation in 1967 the commission
that carried out the exercise recommended that corporation should have an Executive Board whose Chairman would also be the Chief
Executive.
The government enterprises require constant financial backing for the smooth running. Due to inadequate capital and lack of financial
autonomy public enterprises in Nigeria are confronted with a lot of problems, by managers and employees, government interference,
inadequate capital, technological limitation, and political interference in the aairs of public enterprises in Nigeria.
Since mono-culture economy cannot meet the demand or generate large sum of revenue to run the economy or by public enterprises,
the government seeking ways to reduce the rapid increase of bad economy by adopting policy to boost our economy.
Privatization and commercialization policies are adopted by federal government as a remedy to problems that emanated from public
enterprises. There are economic policies which grant full autonomy to public enterprises so that they can operate without government
subvention, control and interference which ultimately resulted in efficient provision of service and high productivity that contribute to
national growth and development. Although, these two concepts have identical goals and purpose, that is provision of efficient services to
the public, high productivity and profitability, yet, they are different in nature and character.
The Federal Government of Nigeria in (1988) through Decree No. 25 set up the Technical Committee on Privatization and
Commercialization (TCPC). The TCPC was charged with the responsibility of privatization and commercializing some selected government
enterprises. The main reason was to promote greater efficiency and productivity in the public enterprises.
1.2 Statement of Problem
Public enterprises were established by the Federal Government especially in the 1960s and early 1970s when the public sector was seen as a
major contributor to economic growth and socio-political stability. The public enterprises of Nigeria set up by government to perform
definite social and economic functions for the public.
The functions that informed the establishment of these public enterprises are to control the resources and raise funds for the provision of
certain infrastructure facilities particularly in service requiring heavy financial investment e.g. Railway, Electricity, Telecommunication etc.
also, to perform the function of generating revenue that will add for financing development programme and projects as veritable
instrument for creation of jobs.
Therefore, since those functions are not performed, creditable, or efficiently privatization and commercialization policy is introduced by
Federal Government of Nigeria. In identifying the problems militating against their performance, the problems are stated clearly below:
(1) Is political interference and mismanagement of resources responsible for the poor performance of public enterprises in Nigeria?
(2) Could privatization and commercialization enhance the efficiency of public enterprises?
(3) Does the privatization and commercialization improve the potential, the efficiency and service delivery in Nigeria telecommunication?
1.3 Objective of the Study
There are some certain aims and objectives for which the researcher embarked on this work such as:
(1) To ascertain if political interference and mismanagement of resources is responsible for poor performance of public enterprises.
(2) To ascertain if privatization and commercialization could enhance performance of public enterprises.
(3) To discover if the privatization and commercialization of public enterprises has improved the efficiency of service delivery.
1.4 Significance of the Study
The importance of any research is tied to find out solutions to the various problems that face mankind in the environment or society. The
study creates awareness to every citizen of this country and economic planners on the implications of these privatization and
commercialization of the public enterprises in Nigeria economic development.
It helps stake holders assess the performance of NITEL following the privatized and commercialization of public enterprise. It helps
researchers on contemporary issues have first-hand knowledge of the performance of privatized and commercialized public enterprises.
1.5 Literature Review
There are various kinds of opinions by many scholars on activities of privatization and commercialization of public enterprises. The federal
government has restated its commitment to the privatization programme saying that it would not allow obstacles to make it change its
focus.
PRIVATIZATION AND COMMERCIALIZATION OF PUBLIC ENTERPRISES IN NIGERIA AN APPRAISAL OF TELECOMMUNICATION