PROBLEMS AND PROSPECTS OF PRIVATIZATION AND COMMERCIALIZATION IN THE PUBLIC SECTOR
ABSTRACT
This topic, problems and prospect of privatization and commercialization of power holdings company of nigeria in Nigeria is the attempt to help the general public to know about the privatization commercialization of power holdings company of nigeria in Nigerian. Moreover, to enable the public to contribute their own quota in the privatization issue and find out the problems and prospect associated with the porgammes.
The chapter one deals with the introduction, the historical background of the programmes, and statement of problems objectives of study, significant of study, scope and limitation and lastly definition of terms.
In this project writing the chapters one from chapter one to five which give the view of what privatization and commercialization of power holdings company of Nigeria are all about.
CHAPTER ONE
1.0 INTRODUCTION
The key component of the federal Government Adjustment programme is the drive towards higher efficiency in the public sector. This necessitated the promulgation of privatization and commercialization Decree 25 in 1988 by the federal Government in which was reflected that government will divest it holdings in agricultural production, electrical appliances, hotels, foals and non strategic industries. Government will also reduce its holdings in banks insurance companies and other financial enterprises without losing control.
Privatization is thus, process of diversiting government ownership control and management of enterprises and agencies to private individuals and or groups of individual or business firms that are seeking their profit. This is transfer of government owned industries or parastatals to the private sector.
Hemmings aptly, described privatization as a laudable policy to help moderate the quantity of securities available for dealing on the stock exchange the described further as the transfer of ownership and control of assets from the public to private sector.
Commercialization on the other hand means that the signated enterprise will be excepted to generate enough revenue to cover their operation expenditure while government gives them capital grant to finance their capital intensive projects.
As a matter of feet, commercialization under the Decree 25 of 1988 on privatization and commercialization was defined as the re – organization of enterprises wholly or partly owned by the federal Military Government such that these enterprises shall operate as profit these making commercial ventures and without subvention from the federal Government.
The Government involving itself in business enterprises came as a result of predominance of state owned enterprises reflected a desire to control the economy after the colonial rule in the country.
The 1983 presidential commission on parastatals, examined the operating all the parastatals with a view to determine the basis for new funding scheme appropriate capital structure as well as incentive measured to enhance their productivity and general efficiency.
Consequently, there are reasons why government embarks on privatization and commercialization of parastatals such as: government desires to bring optimum efficiency into the industrial sector of the economy. This shows that government can work effectively achieve its social and development goals by reducing the widespread administration over commitment of the public sector and development relying on the managerial capacities of private individuals and firms which can respond to local needs, particularly in small scale industries.
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