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- IMPACT OF COMMERCIAL BANKS IN AGRICULTURAL FINANCING IN NIGERIA (A Case Study of First Bank Nigeria Plc.)
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- IMPACT OF INFORMATION TECHNOLOGY ON OPERATIONAL EFFICIENCY OF BANKS IN NIGERIA (A STUDY OF DIAMOND BANK NIGERIA PLC)
- THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF FINANCIAL INSTITUTIONS IN NIGERIA
- IMPACT OF INFORMATION TECHNOLOGY ON BANKING OPERATIONS (A STUDY OF FIRST BANK OF NIGERIA PLC.)
THE IMPACT OF PRIVATIZATION ON NIGERIA MONEY MARKET (A CASE STUDY OF THE CENTRAL BANK OF NIGERIA)
The privatization and commercialization of Nigerian enterprises today, faces a lot of challenges in tackling the menaces of corruption and mismanagement of public funds. It is because of social issues like economic inequalities, unemployment that made the state to interfere in economy of Nigeria. Government chose public sector as a means or medium for economic and social development due to poor managerial skill, weak technological base etc, this enhanced the zeal to establish various enterprises institution in Nigeria. Then, due to inadequate capital and lack of finance, public enterprises in Nigeria are confronted with many problems by the employees, managers and political interference in the affairs of public enterprises. This study concluded by saying that the effect of privatization and commercialization on the Nigerian economy can only take effective progress when the enterprises are wholly or partially in some cases handled and controlled by the private owner whom will not relent in the optimization of profitable enterprises.
TABLE OF CONTENTS
Title page i
Table of Contents vi
Chapter One: Introduction 1
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 5
1.4 Statement of Hypothesis 5
1.5 Significance of the Study 6
1.6 Scope of the Study 7
1.7 Limitations of the Study 7
1.7 Definition of Terms 7
Chapter Two: Literature Review 9
2.1 Theoretical Framework 9
2.2 Reason for the establishment of the public enterprises
in Nigeria 13
2.3 Rational for privatization and commercialization in
2.4 Privatization and commercialization programme in
2.5 Technical committee on privatization Act of (1988)
2.6 Bureau for public Enterprises Act of 1993 20
2.7 Public enterprises privatization and commercialization
Act of 1999 21
2.8 Politics of privatization and commercialization in
2.9 Privatization and commercialization exercises
2.10 Empirical literature reviews 26
Chapter Three: Research Methodology 32
3.1 Research Design 32
3.2 Population of the Study 32
3.4 Sample and Sampling Technique 32
3.5 Method of Data Collection 33
3.6 Method of Data Analysis 34
Chapter four: Data Presentation and Analysis 35
4.1 Presentation of Data 35
4.2 Data Analysis and Hypothesis Testing 38
Chapter Five: Summary of Findings, Conclusion and Recommendations 45
5.1 Summaries of Findings 45
5.2 Conclusions 46
5.3 Recommendations 47
1.1 Background to the Study
To be able transform into an industrialize economy; an underdeveloped economy has to be privately and commercially developed.
The importance of establishing public enterprises or corporation began during the 19th century with the British telecom in 1884 under the telecommunication act and gained a worldwide support in Britain thereafter. Several nations particularly those in Africa, have come to embrace the principle as a way of eliminating low performance and inefficiency in the public enterprise sector.
Following the trend the Nigerian economy has come to embrace privatization as a cardinal principle of the state’s economic policy. Over the years, the Nigerian government has encouraged the development of the public sector, since independence in 1960 and particularly 1970s but has being commonly non successive because of government attitude towards public enterprises business management. In Nigeria, most government owned industries and establishments remain citadels of corruption, studies in inefficiently and consequently a heavy drain on the economy. As a means of combating this menace, the (IMF) and (World Bank) have advocated the twin policies of privatization and commercialization incidentally Nigeria has fully adopted this policy and is embarking on it with frenzy. For example, Nigerian breweries changed from the most inefficient and loss-making company before privatization to one of the most profitable business in Nigeria. Nigeria has more than 1,800 public enterprises at federal and state levels which can be categorized as follows;-
i. Public utility providing infrastructural services.
ii. Strategic industries such as petroleum and petrochemical, fertilizer plants, iron steel.
iii. Economic /commercial enterprises such as manufacturing of consumer goods insurance ,banks and hotel and
iv. Departmental/stationary boards designed to serve specific socials or development roles as university and research institutes (Ake, 1981).
It is important to note that the introduction of SAP in 1986 serves as a bench mark in economic policy-making in Nigeria with the resultant, liberalization, deregulation, privatization and commercialization measures.
The critical question here remains how many of these policies have been able to restructure the political economy of Nigeria and in turn alleviating the yearnings and aspiration of the working class.
The world no doubt is moving towards capitalism and liberalization and any nation that is not moving towards this direction is seen as either not developing or even retrogressing. A capitalist economy is a free market economy which allows most economic decisions to be guided by the twin forces of demand and supply. Since capitalism discourages monopoly but encourages competitive market, it therefore enhances efficiency and high productivity which is very vital in any developing economy.
1.2 Statement of Problem
In a developing country like Nigeria, privatization and commercialization of public enterprises is considered by many as a vital tool for the growth and development of the economy. In Nigeria some of the problems facing privatization and commercialization program include;
a) Lack of accountability
c) Lack of transparency
It is important to note that the major function that informed the establishment of these public enterprises are to control the resources and raise funds for the provision of certain infrastructural facilities particularly in services requiring heavy financial investment e.g. railway, electricity, telecommunication etc, also to perform the function of generating revenue that will add to financial development program and projects as veritable instrument for the creation of jobs; and ultimately facilitate economic growth and development.
However it is based on the problems, that the basic propositions of this privatization and commercialization program are being hindered. In trying to look into these discrepancies and proffer a way forward towards a state of privatization and commercialization of public enterprises in Nigeria, that enhances economic growth and development, this research work emanated.
1.3 Objective of the Study
This study has the main objective of ascertaining the effect of privatization and commercialization of enterprises on the Nigerian economy.
Specifically we intend to compare the pre and post privatization and commercialization era, so as to determine the specific effect.
1.4 Statement of Hypothesis
The hypothesis tested in this study is stated in its null form as follows:
Ho: Privatization and commercialization has no significant effect on the GDP in Nigeria.
HI: Privatization and commercialization has significant effect on the GDP in Nigeria.
1.5 Significance of the Study
This research work will help the government and readers to understand those benefits that privatization and commercialization program embodies which we have neglected and politicized within the past. In understanding this on the side of the government, it will allow them to rethink and work towards real implementation of it and thereby creating a room for the rapid growth and development of this country.
At the other hand, it will go a long way to create an avenue for more academic research. The importance of any research is to finding out solutions that faces mankind and the environment or society. The study creates awareness to every citizen of this country and economic planners on the implication of these privatization and commercialization of public enterprises in Nigeria economic development.
1.6 Scope of the Study
The scope of this research work focused strictly on the effect of privatization and commercialization programmes on the Nigerian economy 1970 to 2010.
1.7 Limitations of the Study
In the course of carrying out this study, the researcher was constrained by the following.
Nonchalant attitude of respondents in providing vital answers or information to the questions asked.
The case study used in this study may not be a true representative of other firms, as generalization of the result in this study may not replicate the true position of things.
1.8 Definition of Terms
1. Privatization and Commercialization: Privatization can be defined as the transfer of ownership and control of enterprises from the state to the private sector. Ikeme (1997) define privatization as any of the variety of measures adopted by the government to expose a public enterprises competition or to bring in private ownership , management or control in to public enterprises and accordingly to reduces the weight of public ownership or control or management.
2. Public Corporations: Public corporation or enterprises as defined by Ademolekun (1983), are organization that engage as a result of government activity in the capacity of an entrepreneur. These can be seen as those enterprises or corporation built, owned and managed by the government.