THE PRIVATIZATION POLICY IN NIGERIA AN EVALUATION OF ITS IMPLICATION (A CASE STUDY OF NIGERIA NATIONAL PETROLEUM, NNPC). A RESEARCH PROJECT MATERIAL ON PUBLIC ADMINISTRATION
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The Nigerian National Petroleum corporation and the petroleum ministry appear desperate to maintain their hold on the downstream sector of the oil industry by planning new refineries and voting more money to maintain the existing refineries such as Enugu, Kaduna, Warri and Port-court
The moves have undoubtedly raised doubts about the federal government’s privatization policy and its avowed commitment to the liberalization of the+ oil industry.
According to Austin Oniwon (2006), the NNPC group managing director the corporation is forging ahead with its plans for the construction of Greenfield refineries and petrochemical plants.
According to Okorie .M. (2006:231) privatization can be defined as the selling and transferring of at least part of the state ownership of a corporation to private owners. It can be defined as the process where by the government handover its management or assets of services to private interest.
According to Odike .J. (2002: 263) privatization is a direct obverse of nationalization. It involves the sales of formerly public enterprises to private individuals and groups. Privatization can also be partial (government still retiring some shares in the businesses) or total (ownership is entirely transferred to the private persons who have paid an agreed amount to the government).
In Nigeria, the Decree No. 25 was enacted in July 1988 to set up the privatization and commercialization programmes. As at this year 2006, it has not been possible to carry out a comprehensive privatization of government enterprises.
On 18th, 2002, the Federal Government has suspended its planned privatization of Nigeria National Petroleum Corporation (NNPC) refineries and its subsidiaries until all issues raised by workers in the industry are resolved. A committee headed by employment, labour and productivity, minister Alhaji Musa Gwadabe has been set up to critically examine and resolve all workers concern as well as that of other stakeholders.
The privatization and commercialization Act of 1988, which later set up the technical committee on privatization and commercialization (TCPC) Chaired by Dr. Hamza Zayyad with a mandate to privatize III public enterprises and commercialize 34 others. In 1993, having privatized 88 out of the III enterprises listed in the decree. The TCPC concluded its assignment and submitted a final report which NNPC is inclusive.
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