THE EFFECT OF PRIVATIZATION OF GOVERNMENT PARASTATALS ON NIGERIAN ECONOMY

THE EFFECT OF PRIVATIZATION OF GOVERNMENT PALATALS ON NIGERIAN ECONOMY

CHAPTER ONE 1.1 INTRODUCTION

Privatization is a relatively new word not until about a decade ago, it made on prominent feature in the politics and economy of many countries. It is defined as the process of changing the ownership of government companies to private ownership through the sale of the shares of such companies to individual who will manage the companies efficiently and profitably.

Originally privatization was a feature of developed nations, they adopted privatization as more of a political rather than an economic policy.

The believe was that the private sector was more effective and efficient in managing the resources. Therefore, the government decides to sell public corporation to the private sector which with its profit oriented motive was expected to perm better n running those companies and hence contributed more to the economic development they belief the political stand of the government in power will be strengthened and consolidated with time.

However, the economic aspect of privatization it is has dominate the political aspect ad today it is adopted as a major economic reform policy.

1.2 STATEMENT OF THE PROBLEM

Nigerian economy has been at a low ebb since the 80’s with large debts and unprecedented high rate of unemployment retrenchment of workers which gives rise to a significant reduction in capacity utilization shortages of essential raw material, dwindling foreign exchange earnings and a continuous rise in inflation. Against this backdrop, statement of probes to be investigated shall include:

1. Privatization of government parastatals its effect on Nigeria economy

2. What are the benefits of privatization, is going to benefits all the citizens or not.

3. Will privatization make the cost of utilities higher or reduce it.

4. what is involved in the privatization of a major utility 9NEPA)

5. Is it only the rich that would benefit from the privatization (i.e in terms of buying of shares).

6. Will government still have interest in the privatized companies or not.

7. Are we undertaking privatization to satisfy foreigners or not,

8. How much money is the government going to make from the privatization.

9. How long is the privatization programme going to last?

1.3 STATEMENT OF RESEARCH QUESTION

This shall in clued researchable question like:

1. Is it only the rich that would benefit from the privatization? I.e. in terms buying shares.

2. Will privatization the cost of utility higher?

3. Why are we privatizing utilities like NEPA and NITEL when they are already commercialized?

4. What been the experience of privatization in other developing countries?

5. How much money is the government going to make form privatization?

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THE EFFECT OF PRIVATIZATION OF GOVERNMENT PALATALS ON NIGERIAN ECONOMY