The guara dam, which was under construction in 2012, is expected to further. A number of countries have, in the past, adopted privatization. African countries, though it well existed on a small scale, according to scholars, nigeria. In this article, we shall define economy and privatization and then list the methods of privatization, give a brief history of privatization in nigeria, offer reasons why successive governments embarked on the privatization of public enterprises, discover whether the problems outweighed the benefits, discuss the present outlook, share success stories and then roundoff. The study is inspired to a large extent by a desire to appraise the impact of privatization policy on the economy and hence will be of great assistance to the user of the nigerian organizations who are in need of what privatization policy in nigeria entails in relation to the statutory role of the economy. Northern and southern countries and states with very different educational traditions and regulatory frameworks have promoted proprivatization reforms for many reasonssocial, political. Union, the government privatized some stateowned enterprises after the collapse of the communist regimes. However, in choosing the strategy for each enterprise, the following are always taken into consideration.
The perception of nigerians on the deregulation and. However, in a narrower sense, privatization refers to a transfer of state activities into the private sector by sale full or partialof ongoing concerns or by sale of assets following liquidation. According to wikipedia, the history of privatization dates back to ancient greece, when governments contracted out almost everything to the. They argue that privatization is a neoliberal approach to development, which is imposed by the brettons woods institution as part of globalization that can only favour rich countries and individuals. The success story of privatization reform were also. The history of privatization and deregulation in the. Has nigeria benefitted from privatisation of the power. The privatization act gives the national council on privatization ncp sufficient flexibility in deciding the appropriate methodstrategy to be adopted in privatizing each enterprise.
In addition, privatization of public enterprises is being pursued with scant regard to the laws of the country. Nigeria, the telecoms company and the fiscal impact of the whole privatization process on the nigerian economy and labour market. The effect of privatization on economic growth of nigeria. The fourth section will introduce and discuss the results of my own empirical study. Privatization aims to increase electricity generation in nigeria by catalysing private sector investment and commercial financing in nigerias power sector through the provision of partial risk guarantees prgs. The history of privatization dates from ancient greece, when governments contracted out almost everything to the private sector. Privatization issues this section addresses the issues, and the decisions which governments themselves must make prior to embarking upon a privatization process. Although the years since nigerias return to civilian rule in 1999 have seen an increased interest in its history and politics, nigeria remains one of the most underresearched african countries. To be honest, nigerians were right to have asked the government at that time to take positive steps to improve power supply in nigeria. The impact of privatization and commercialization in nigeria. The gini index measures the extent to which the distribution of income or. Commercialization and privatization policy in nigeria.
Already, nigeria is among the 20 countries in the world with the widest gap between the rich and the poor. In nigeria for instance, pes, before the introduction of privatization, used to consume a large portion. Several dominant themes in nigerian history are essential for understanding contemporary nigerian politics and society. Advantages and disadvantages of privatization the merits and drawbacks of privatization have been subjects of considerable debate among businesspeople, city leaders, and public employees alike. Privatisation in the power sector 3 introduction nigeria s power sector reform has proceeded as scheduled. Nigerias pes were faced with myriads of problems which made government to embark on pes sectorwide reforms via privatisation with the hope of giving more efficient structure to the nigerian economy with attendant benefits accrue to the generality of the. Therefore this chapter will examine the concept of privatization in the first instance, role of the state, the origin of public enterprises in nigeria, and also examining he history, objectives and challenges of privatization programme in nigeria. See federal republic of nigeria, report of the presidential commission on parastatals, lagos, federal government press, 1981, p 63 see also amupitan j private placement method of privatization in nigeria in new vista in law, vol. For instance, attempts were made to privatize nepa when the law that sets it up prohibits private ownership of electric company in nigeria. They argue that privatization is antilabour and will always lead to unemployment. Privatization in nigeria was thought to have represented a reversal of the entire. In the final section of the paper i will attempt to draw useful conclusions regarding privatization as an economic growth policy.
With an installed generating capacity of about 7,500mw and operating capacity of. This study therefore examines the justifications for privatization side by side the actual experiences sequel to the policy implementation in the electricity industry in. Today land is a metaphor for other rights such as education. But a wholesale change to the market, designed under reformist president obasanjo and pushed forward by president jonathan, promised greater efficiencies and investment guided by privatesector principles including widespread privatization, pricing. University education in nigeria from the beginning seemed to be a mirage for nigerians, with lack of interest demonstrated by the christian missionaries who first started giving education and subsequent involvement of the colonial government who. History examples, and issues page executive summary i i. Megginson william m och netter jeffry m from state to market. The political economy of privatization in nigeria covenant. Nigerias flag consists of three equal vertical bands of green, white, and green. The adf prgs will mitigate the risk of the nigeria bulk electricity. Privatisation in the power sector 3 introduction nigerias power sector reform has proceeded as scheduled. Background experience worldwide has shown that public enterprises pes have failed to live up to expectations.
Problems and prospects of privatization in nigeria. In recent history, privatization has been adopted by many different political systems and has spread to every region of the world. More importantly, they fail to allocate these resources efficiently. Privatization, also spelt privatization in british english, has several meanings. Privatization, a method of reallocating assets and functions from the public sector to the private sector, appears to be a factor that could play a serious role in the quest for growth. But there was policy departure with the advent of democracy in nigeria in 1999 as the federal government embraced privatisation policy as a way of bringing about efficient management of the national economy. The privatisation of the power sector was meant to break the control of electricity generation and distribution from government, to ensure adequate, regular and stable supply of electricity to the. Social security, the tennessee valley authority, the securities and exchange act, and. Privatization is the transfer of a company or organization from government to private ownership and control. Privatization and commercialization in nigeria will be a mirage unless institutional reforms take place.
Privatization must result in better service delivery at lower prices as desired by consumers. The history of its power sector was one of inefficient monopolies, missteps, and corruption. If president olusegun obasanjo had made deregulation and privatization a campaign matter he would have lost the election. The initial groundwork and clarification of objectives recommended herein should enable. Privatization and nigeria economy a case study of phcn abstract privatization of state owned enterprises has emerged globally as a public policy aimed at reversing the appalling trend of public and social services provisioning. The impact of privatization and commercialization on nigerian economy includes abstract and chapter one, complete project material available the impact of privatization and commercialization on nigerian economy 19852010 abstract the ultimate goal of any credible and legitimate government is to ensure sustained improvement in the standard of living of the. Evaluation of privatization policy in nigeria 1999 2004.
Indeed, each element of privatizationfrom its apparent costsaving properties to its possible negative impact on minority workersprovokes strong. Referendum on deregulation and privatisation by ben lawrence, vanguard daily, 28 september 2000. In nigeria some of the problems facing privatization and commercialization program include. The privatization of education is a global phenomenon with multiple manifestations. Privatization the transfer of government owned shareholding in public enterprises to private shareholders is one of the revolutionary innovation in economic policies of ooth developed and developing countries igbuzor 2003.
Benin, cameroon, ghana, kenya, nigeria, and tanzania privatization has been. The contemporary political history in general of nigeria. The historical survey of privatisation in nigeria privatisation programme is not a recent phenomenon. In the roman republic private individuals and companies performed the majority of services including tax collection tax farming, army supplies military contractors, religious sacrifices and construction. They consume a large proportion of national resources without commensurate performance and service delivery. This analysis shows clearly that the word privatization is absolutely inapplicable in describing the contemporary broadcasting situation in the country.
The privatization of the nigerian power sector was embarked majorly to ensure stable electricity supply to power both homes and industries. This study examines the unintended consequences otherwise called the dark side of privatisation of public enterprises pes in nigeria. Privatization is designed to increase economic effectiveness and efficiency by imposing market discipline in the planning and management of public enterprises in nigeria, after the influence of technical committee on privatization and commercialization t. Pdf despite an impressive level of privatization activity across africa and the upsurge in. The government should create an environment favorable for private economic activity.
In this publication we look at some of the milestones that have been crossed and explore the next steps in the sale of 17 federal government power assets. Primarily, it is the process of transferring ownership of a business, enterprise, agency, public. Privatisation in nigeria international society for development and. The history of inflation in nigeria is full of up and down, for example, in the middle of 1970s when there was an oil boom in the economy the rate of inflation goes out of the way and the military government of that time did not help matters with it inflationary policies such as the udoji awards, that unnecessarily put money in the pockets of. The paper adopted the historical research method whereby secondary data obtained from relevant. Civil society in nigeria are concerned that the privatization exercise in nigeria will lead to further widening of the gap between the rich and the poor in nigeria.
Privatization as a means of sowing nigeria economic problems with nepa as a case study this is with a view to highlighting its need for our economic growth. The history of privatization and its experience around the world. Government policy, opportunities and constraints, and. Nigerias capital abuja receives part of its drinking water from the lower usuma dam. Department of banking and finance, faculty of management sciences university of calabar, calabar, cross river state, nigeria email. Privatization and commercialization of public enterprises. The privatization process in nigeria is a fragment abuse of this provision of the constitution. The effect of privatization on nigerian economy edustore.
Nigeria power sector privatization program appraisal. First, the spread of islam, predominantly in the north but later in southwestern nigeria as well, began a. C in 1980s privatization was slower in the1990s privatization in nigeria has. Pdf privatization and enterprise performance in nigeria. While privatization has worked mostly in the telecommunications sector, according to the world bank, history shows that privatization in nigeria reflects some of the problems which have beset many other development processes. The capacity of the plant that treats surface water from the dams reservoir was in the process of being increased in 2012 in order to cater for the growing population of the capital.1393 135 16 1051 553 457 1424 784 641 984 203 650 919 492 715 1324 1083 1378 836 1347 311 576 1390 1275 1271 486 303 1526 176 1431 1099 1436 1498 1254 112 1411 1010 1122 598 1399 1146 857 532 417 493