THE EFFECT OF PRIVATIZATION AND COMMERCIALIZATION ON NIGERIA ECONOMY
ABSTRACT
The emergence of privatization as a major policy issue is a phenomenon of the second half of the seventies (70’s). By the end of the 1980’s it has spread and become a slogan, “everybody is doing it” Government intervention in Africa have so far been discredited not because there is an effective alternative in the form of an efficient market mechanism but because of inefficient management, poor results and miss-allocation of resources. The inefficient utilization of resources and financial miss-management of most of the public enterprises over the years have resulted in very week balance sheet, excessive debt, and in most cases negative network. Furthermore, the fact that this indolent performance of the state in the administration of public business enterprise creates a situation in which national funds that would have been better spent to generate new economic activity and the employment opportunities for the aim of the unemployed, are been used to subsides dead wounds that would neither grow nor change. The aim of this project is to give a brief history of public enterprises and the problem confronting them, the need for privatization, commercialization, problem, and the prospect s of privatization and commercialization.
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
The inefficient utilization of resources and financial mismanagement of most of the public enterprises over the years has resulted in a very weak balance sheet, excessive debt and in most cases negative network. Furthermore, the fact that this indolent performance of the state in the administration of public business enterprises creates a solution in which national fund that would have been better spent to guarantee new economic activity and employment opportunities for the army of unemployed is being used to subsidize deadwood that would neither grow nor change.
Public enterprises are enterprises that are controlled by the state, they are non-profit oriented enterprise. The history of state participation in
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