- Chapter: 5
- Pages: 67
- Well detailed
This write up is of the opinion that government owned companies in Nigeria has become burden to the government.
They depend solely on the government for subventions or grants privatization as one instrument of SAP will be used to achieve economic efficiency in Nigeria.
The aim of the study is to find out why government owned companies and parastatals that were initially established along commercial lines not only that they enjoy high subventions from the body that set them up and have performed below their counterparts in the private sector.
The research work is based on both primary and secondary data. The data is the administration of questionnaires, journals, newspapers and books. The statistical tools used in testing the hypothesis is chi-square.
It is the belief of the researcher that the findings and recommendation would be of invaluable help to the government owned enterprises which constitute most part of the public sector of the economy. The research study made some intershaped findings which revealed through analysis of data randomly administered to both public and private enterprises in Enugu State.
It is recommended as a result of this research that there should be modalities for debt equity swap. This will bring managerial skill as well as new capital facilities. Also foreign investors should be encourage to invest in Nigeria when the government has created a conducive investment atmosphere for them to operate. Finally the attraction of technical and administrative known how that may be available in our country.
In country, if all these are achieved, Nigeria will move towards economic development.
Table of Content:
TABLE OF CONTENTS
TABLE OF CONTENTS
1.1 Background of the Study
1.2 Statement of the Study
1.3 Objectives of the Study
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope and Limitation of the Study
1.7 Definition of Terms
2.1 Review of Related
2.2 Definition of Privatization
2.3 Conditionality’s Necessary for Privatization
2.4 Diverse view to the Privatization Policy and Precautionary measures
2.5 Programmes and Policy implementation of privatization
2.6 Reasons for Privatization
2.7 Contracts on Privatization as policy measure
3.1 Research Design and Methodology
3.2 Sources of Data
3.3 Location of Data
3.4 Method of Investigation
3.5 Sample Size
3.6 Methods of Presentation of Data
4.1 Data Presentation and Analysis
4.2 Analysis of Questionnaire
Nigeria as one of the developing countries tagged third world countries. It was the opinion of the concerned nationalist that it would almost be very dangerous and unrealistic of the independence to allow that task of national development in the hands of private individuals. For this reason the government had established government owned corporations and parastatals to help it plan, guide regulate, direct and control the economy and the pace at national development.
However, in contrast to the great expectation of the government, that sum to the setting up of those enterprises have not been something to write home about.
Those corporations show a lot of demoralizing effects all those things includes; beings unable to give account of capitals invested in the firm, low quality of services should, insecurity of job facing workers etc.
The highest of it all is their inability to give account of money allocated to them by government. A few of them stand out like, the Nigeria coat corporation, the Nigeria Airways, Nigerian Telecommunication (NITEL), National Fertilize Company (NAFCON) Nigerian National Petroleum Corporation (NNPC) and the National Electric Power Authority. Among all these parastatals, the services of the hast establishment (NEPA) has been painful to the consumers to the extent that they have customarized it never expect power always. These are common examples cited by those who point out the inefficiencies that are warrant in the government owned enterprises been privatized.
The governments concern about the poor performance of its corporations and parastatals become a major factor until when the second wave of oil guide hit the world Nigeria’s oil began a dangerous effects.
In 1981, the President Alhaji Shehu Shagari set up another commission on parastatals to study their operational problems and recommend how these can be solved to help them provide efficient services for which they were established. The commission recommended that commercially oriented parastatals should be solved to subject themselves to their discipline.
It observed that many of the problems which seem internal to parastatals were deny from the realities of the socio-social and socio-political environment in which they operate and to propose only reform internal to the parastatals or in their getting parastatals to satisfy public expectation is simply to ignore significant roles expected in order to interpret this, the commission recommended privatization of some government owned enterprises.
It was evident that the problems of government owned enterprises and how to handle them had taken the center stage in the country’s attempt to revamp the economy. It did not take too long he was overthrown. The former first head of state from 1984 to 1985 Muhumedu Buhari appointed a study group on statutory corporation and parastatals to review the financing, profitability and performance records of state ventures. The group has Ali-Al-Makin (then managing director and Chief executives of the Bank of the North Plc). As the head, this group was charged with the responsibility of identifying the major problems of these enterprises as vague and conflicting objectives inadequate autonomy, inflexibility in decision making process, inappropriate capital structure, under-utilization of assets, absence of good credit control system and inability to collect debts, lack of adequate cost control measure, ineffective and inefficient management on formation and accounting system, absence of financial and operational performance recommendations as a possible solutions to or act at least as of those problems is selective privatization.
Inspite of the huge amount of money, pumped into such enterprises, they have failed to achieve the minimum level of efficiency that was expected of them.
In 1986, National Annual Budget speech, the then president Ibrahim Babagida put the issue clear that public corporation have been constitute and unnecessarily high burden on government.
The current financial constraints of the government have worsened their problems, thus something have to be done to come as a reasonable solution or the accumulated losses that the parastatals contributed to the economy.
And so, purely on the grounds of promotion, it becomes necessary for government to take a hard to these parastatals and that was why it decided that some measures should be taken this privatization.