CHAPTER ONE

1.0 INTRODUCTION

Effect of Privatization and Commercialization of Public

Enterprises in Nigeria

We are witness to sweeping changes that are taking

place in the economics of both developed and developing

countries. These changes relate to effort to move away from

government ownership, control or participation in the economy

towards free enterprises and increased operation of market

forces. On the whole, the changes are making for a reduction

in the role of government in the economy, with a

corresponding expansion in private sector ownership control

and participation. We are thus observers of the evolution of a

new world economic order (NWEO) which is characterized by

the liberalization or deregulation of economic activities with

the aim of achieving efficiency and effectiveness in resource

allocation and utilization the economic reforms of the new

world economic order are being implemented in more than 70

1
 countries around the world, including the USSR, China,

Vietnam and Eastern Europe Countries where such reforms

were virtually unthinkable less than a decade ago.

1.1 Background to the Study

Since independent in 1960 (and especially during the

1970’s); Nigeria like most developing countries develop a

particularly large parastatals sector. The parastatals sector is

composed of such economic activities as banking and insurance, oil

prospecting, exploration refining and marketing, cement, paper and

steel mill, hotel and tourism sugar estate, e.t.c. survey undertaking

by the technical committee on Privatisation and commercialization

(TCPC) shows that there are nearly 600 public enterprise at the

Federal (national) level. Alone, and estimated 900 at the state

(regional) and local government level. The estimated 1500 public

enterprises in Nigeria account for between 30 and 40 Percent of

fixed capital investment and the same proportion of formal sector

employment.

2
1.2 Statement of the Effects

Bottle neck in the system

Geo-political spread

Access to credit

Institutional investors

The social political effects

Ideological Opposition

Publicity and public enlightenment

1.3 Purpose of Study.

To restructure and rationalize the public sector in order to

loosen the dominance of unproductive investment in that

sector.

To ensure positive returns in public sector, investment in

commercialization enterprise

To initiate the process of gradual cession to the private sector

of such public enterprises those by the nature of their

operation and other social economic factors are best

3
 performed by private sector, creating of favourable investment

climate for both local and foreign investors.

To provide institutional arrangement and operational

guidelines that would ensure that the gain of privatization and

commercialization are sustained in the future

1.4 Hypotheses of the Study

Antagonism by labour a subset of the group who oppose

privatization on ideological grounds are those who believe that

privatization is anti-labour, as it will inevitably lead to massive

retrenchment the answer here is that, this is not necessarily

so to the extent that efficiency of the enterprises improve.

Moreover the Nigeria Technical committee on

privatization and commercialization (TCPC) Decree specifically

provides that at least ten percent of the share being sold in

each enterprise but more significant, with the exception of

cause of outrage liquidation, there have been no job losses.

4
1.5 Significance of the Study

The significant of the study, in both developed and

developing countries privatization and in some cases

commercialization have grown in popularity and acceptability.

It has become a significance instrument that government can

use to promotion economic development. Improve the

production and distribution of goods and services, streams line

government structure and reinvigorate industries controlled or

managed by the state

1.6 Scope of the Study.

The scope of Nigerian’s privatization and

commercialization programme. Government investment in

Nigeria cut across all sectors of national economy the current

privatization exercise torches practically every industry at

federal level , expect defence.

5
 In all, a total of 110 enterprises will be privatized (either

partially of wholly) with another 35 to be either partially or

wholly commercialized.

1.7 Limitation

The limitation from public to private ownership

enterprises.

Government is into more things than it should be; it is

intruding to private enterprises and level. Government is

unable to provide services effectively or efficiently.

Public officials and public agencies are not adequately

responsive to the public. Government consumes too many

resources and thereby threatens economic growth on the

theoretical plane

1.8 Definition of Terms

Definition of the terms Privatisation and

commercialization of public enterprises in Nigeria

6
 The terms of privatization means the transfer of

government owned shareholding in designated enterprises to

private shareholders.

The term commercialization means the re-organization of

enterprises, wholly and partially owned by the government, in

which such commercialized enterprises shall operate as profit

making commercial ventures without subvention from the

government.

7
 CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE

2.1 A Brief History of the Effect of Privatization

Commercialization of Public Enterprises in Nigeria.

Privatization in Nigeria was formally introduced by the

decree of 1988 as part of the structural Adjustment

programme (SAP) of Ibrahim Badamosi Babagida

administration (1983-1993). As MC Grew was argued, SAP is a

neo Liberia development strategy devised by international

financial institutions to incorporate national economics into the

global market.

The privatization and commercialization Decree of 1988

set up the Technical committee on privatization and

commercialization (TCPC) under the chairman of Dr Hamza

Zayyard to privatize 111 public enterprises and commercialize

34 others.
8
 In 1993 the TCPC concluded its assignment and

submitted a final report having privatized 88 out of the 111

enterprises listed in the decree. Based on the recommendation

of the TCPC the federal Military Government promulgated the

Bureau for public enterprises Act 1993 which repealed the

1998 Act and set up the Bureau for the pubic enterprises

(BPE) to implement the privatization in Nigeria.

In 1999, the federal government enacted the public

enterprise privatization under the chairmanship of the vice

president the function of the council includes.

Making policies on privatization and commercialization.

Determining the modalities for privatization and advising the

government accordingly.

9
Determining the terming of privatization of particular

enterprises

Approving the prices for shares and the appropriate of

privatization adviser.

Ensuring that the commercialized public enterprises are

managed in accordance with sound commercial principles and

prudent financial practices interfacing with the public

enterprises together with the supervising ministries, in order

to ensure effective monitoring and safeguard of the managers

autonomy of the public enterprises.

The act also establish the Bureau including of public

enterprises (BPE) as the secretariat of the National council on

privatization.

The function of the bureau include implementing the

policy on privatization and commercialization preparing public

enterprises approved by the council for privatization and

commercialization advising council on capital restructuring

needs of the public enterprises to be privatised.

10
Ensuring the update of accounts of all commercial making

recommendation to the council in the appointment of

consultants, adviser, investment bankers, issuing houses,

stockbrokers, solicitors, trustees, accountants and other

professionals required for the purpose of either privatization or

commercialization

Ensuring the success of the privatization and

commercialization exercise through effective post transaction

performance monitoring and evolution.

Providing secretarial support of the council.

In December 1999 the democratic elected government of

President Olushegun Obasanjo picked interest in the

privatization exercise and gave it a boost by establishing the

National council on privatization (NCP) with the Vice president,

Alhaji Atiku Abubakar as its chairman.

The council is empowered among other things to

determined the political, economic and social objectives of the

privatization and commercialist ion programme , approve guild

11
lines and criteria for valuation of public enterprises marked out

for privatized or commercialized and approved the prices for

share or assets of the public enterprise to be offered for sale.

During the first phase of the exercise which spanned

from July 1988 and June 1993, the following programme were

executed.

36 enterprises were privatized through public offer of their

shares, 4 enterprises were privatized on deferred public offer

method via private placement method.

8 enterprises were privatize via sales of assets method

1 enterprise was privatized through management by out

method (MBO).

Sale of non-water assets of about 18 River Basin development

Authorities.

Under the phase 1 programme, about 88 public

enterprises were either fully or partially privatized.

These were enterprises in which the Nigerian government

invested with the exception of the cement and the oil

12
marketing companies the capitalization of most of them was

small.

The huge capital intensive and basic industries like the

fertilizer companies, sugar companies Vehicle assembly plants,

paper and the steal mills which hold vital position in the

economy could not be privatized for various reasons raging for

financial insolvency to negative net worth.

Finally, there was lack of clarity of governments policy on

some critical issues associated with the implementation of the

programme. The issues include, whether to privatise as “is” or

rehabilitated before privatization.

To believe the enterprises managers of their duties

before or after Privatisation, the type of regulatory framework

that will be in place.

Whether the sales should be given to both foreigners and

Nigerians.

The valuation methods to be used.

13
 The role of foreign core investors in the ownership and

management of the national economy.

Loss of job resulting from the privatization income inequality

arising from the ownership of privatised assets

Whether to deregulate before or after Privatisation, utilization

of the Privatisation proceeds. Whether government should go

ahead and own any golden shares

The level of transparency in the programme

The exercise had an unqualified success.

Unlike other countries, the privatization exercise in Nigeria

was done by Nigerians for Nigerians without any foreign

technical assistance.

The programme succeeded in relieving the government

of the huge and growing burden of financing public

enterprises, minimized the overstretching of governments

managerial capacity through a redefinition of the role

supervising ministries, created a large body of shareholders

14
and deepened and broadened the Nigeria capital market to the

position of being the most developed in black Africa.

The market capitalization of the Nigeria stock exchange

(NSE) through which the shares were sold has grown from N

8.9 billion in 1987 (before privatization) to N 65.5 billion in

1994 (after the phase ) and currently stands at N 428.9 billion

as at the end of August 2000.

The technical committee on privatization and

commercialization wounded up her activities and submitted a

report to the president on June 5th 1993. The TCPC also

transformed to the Bureau for the public enterprise (B.P.E).

The bureau was to monitor the performance of the enterprise

privatised in the past exercise and plan for the future phases.

Because of the success of the past exercise, the military

government under General Abudulsalam Abubakar

promulgated the publics Enterprise ( Privatization and

commercialization ) Decree No 28 in early 1999 ( before the

hand over to democratically elected government ) the Decree

15
kicked of the phase II of the BPE, it has increased the list by

37 extra enterprises (some of which were originally meant for

commercialization) some of the big government companies

being privatisation now include National Insurance Corporation

of Nigeria (NICON) Nigerian Re-insurance Corporation,

Nigerdock Plc Nigerian National Aviation , Handling Company

(HAHCO) Nigeria Railways corporation NRC) ,Nigerian Port

Authority (NPA), Nigeria Postal services (NIPOST) and

Savannah sugar company.

This is an indication of the enhanced interest in and

success that privatisation has achieved in Nigeria.

The catalytic effect of the volume of shares released into the

market via the privatisation exercise cannot be over

emphasized.

Effect of Privatisation and commercialization of public

enterprises in Nigeria include.

Bottleneck in the system, considerable delays have been

experienced in the processing of application forms, resulting in

16
frustration for applicants who expect to return monies from

one issues we realized to our dismay that the registrar’s office

were ill-equipped to process the unexpectedly large volume of

applications received.

Steps have been taken to remedy this short coming by

resulting the receiving agents to pay return monies and

insisting on adherence to the offer time table by all parties

concerned.

Geo-political spread: imbalance in shareholder distribution,

geo-political is another major effect, efforts are being made to

broaden publicity and public enlightenment so as to ensure

levels of participation (increase) in the most retared areas.

Access to credit for a large body of interested persons has

proved an interactable effect, although licensed banks were

advised by the central bank of Nigeria to extend credit to all

interested person, for operational reasons, the banking system

has not responded favourably.

17
 This effect has tended to dampen enthusiasm,

particularly amongst the working class whose earnings are

hardly sufficient to meet their normal needs, let alone have

surplus to invest one reason for the banking attitude is that

the system has gone through rather traumatic changes in

recent years and perhaps once the banks overcome the effects

posed by the changes, the situation may be improve.

Employees of labour have been advised to assist the

employees with shares purchase loans and the response has

been most encouraging.

The social political effect: there are some people who are

opposed to Privatisation just as they are opposed to the whole

structural adjustment programme, on ideological ground to

them, Privatisation and SAP are impositions of international

capitalism

They often dismiss the explanation that Nigeria had been

looking for solution to that effect of public sectors investors

long before the IMF and World Bank came on the scene.
18
They also generally do not see much merit in the argument

that the Nigerian Privatisation programme is a home grown

solution an imposition of the IMF and the World Bank.

Publicity and public enlightenment: the need for creating

public awareness of the Privatisation programme was

recognised very early in the day.

Such awareness is necessary not only to dispel certain

mis-conceptions and fears about the programme but also to

explain, in as simple way as possible the technicalities of

investment via the stock exchange to a populace the largest

majority of whom are unfamiliar with such technicalities and

maintained the immense public interest generated by this

intensely political as well as economic programme by

explaining the details to people in all corners of the county.

We identify the radio as the most effective medium of reaching

the masses, although uses was made of news papers,

television, seminars, conferences, workshop e.t.c

19
Ideological opposition: since such views and more often than

not deeply rooted in ideological opposition, it is not easy to

dissuade those who express them, particularly as they

vocal and elitist.

The primary argument for Privatisation and

commercialization is of course, that the efficiency and

profitability of the investment will improve after their exercise.

At the end of the day, its is the clear demonstration of such an

improvement that will convince people who hold such views

institutional investors: A considerable part of the over

subscription experience in the offers for sale arose from the

intervention for large institutional investors who saw in

Privatisation and opportunity to broaden their investment

portfolios with emphasis being given to the small individual

investors, such institutional investors are unable to obtain the

quantities they required, special effort is been made to

persuade such investor to have faith in the programme, until

20
 such time as the really large offers are made, when everyones

demand will eventually be satisfied.

2.2 Conflict Management in Privatisation and

Commercialization of Public Enterprises in Nigeria.

Conflict management and commercialization in Nigeria

the issue of mis-management and under utilization which lead

to huge wastage of resources and manpower potentials gave

the government of the day another option but to purse quickly

the Privatisation programme.

There are about 600 public enterprises in Nigeria run by

or controlled by the federal government these companies take

a sizeable portion of the federal budget and account for over

5000 appointments into their management and board a

powerful source of political patronage.

These companies where also infested which became an

avoidable drag of the economy such as abuse of monopoly

power, deficit capital structure heavy, dependence on treasury

findings, rigid bureaucrative structure and bottle neck

21
 mismanagement, corruption and nepotism with all these

problems the government had no other option but to take a

positive step

2.3 Definition of Conflict

Conflict is a situation in which people, groups or

countries are involve in a serious disagreement or

argument.

2.4 Theories of Conflict.

They may riot, protest and display other act of

disobedience to authority group with a society could also

compete with one another in positive ways for examples,

groups in the same trade e.g. bank or factory providing

similar services or producing similar goods.

2.5 Nature and Causes of Conflict.

As people live together there is bound to be some

conflict e.g. people may quarrel and fight, there is often

disturbing noise, there may be land disputes and other

22
forms of misunderstanding, there are often cases of theft

, there are causes of deceit and cheating.

A society exists because members agree to relate to one

another.

They keep the rules of the society and punish offenders

for example under Islamic law (sharia) people who steal

other people’s property could have a finger or hand cut

off.

Some group may send away a person or even his or her

family from their social group because he/she have

committed crime against the society.

Today the law of the land stated clearly punishment

for all forms of crime against a citizen or against society.

When punishment no longer fits the crime committed law

and order breakdown people become anxious and afraid

and the society became unstable and weak.

Every society has group that are powerful these group

dominate a society.
23
 There are also groups that are weak they have very little

influence on government and society.

2.6 Types of Conflict

Violent conflict

Emotions conflict

Reports conflict

Interest conflict

Violent Conflict: This is a situation or period of fighting

between two countries. E.g. Armed or Military

Emotion Conflict: This is a situation in which there are

opposing ideas, feelings or wishes, a situation it is difficult to

choose e.g. story tells of a classic conflict between love.

Report Conflict: This is the process, on how much of aid

was reaching the famine victims.

Interest Conflict: This is a situation in which there are two

jobs, aims, roles e.t.c. and it is not possible for both of them

to be treated equally and fairly at the same time.

2.7 Importance of Conflict

24
 It will make sharing of the resources in society easier

It will allow others to express their opinion on matters

which relate to them, this help us to reach an

agreement.

2.8 Conflict Management

We must do something to everything that cause

conflict in society , for example members of the land,

nobody must use his or her position to change the course

of justice people must understand the difference between

individual and group interest and must not promote one

groups interest over the other using their position to do

so.

Rivalry between groups and those among group

members should be resolved through accommodation of

group or individual interest powerful and influential

group becomes selfish, when they careless about what

they do, the weak should be made to see and feel this

social inequality.
25
 They may then revolt one body and cause problem

for these powerful and influential groups.

These groups try many methods to beat their rival

sometimes, this competition can be carried too for it can

course conflict.

In country like Nigeria where we have to make a

decision to appoint some one a scholarship or contract.

Some people prefer to choose a person from their own

ethic group.

This cannot go well with all members whether that

person is qualified or not

Attitudes like this can cause division within the Nigeria

community and it may lead to competitions between

groups and within groups should be carried out with the

other interest at heart.

They should give room for each member or group

to express their feelings.

26
 This means that such members or group will agree

to settle major conflict so that they can live together in

peace in other way, group should agree to co-operate

especially when they can share common aims and

objectives in one work, when there is conflict on any

issues, people must talk till they agree.

The skill with which society handles peace, and

other aspect of relationship in the community is through

negotiation.

By negotiation we mean a way of getting ones

need, met without using anger or force for example all

areas which we discussed earlier as capable of causing

conflict in the society could be negotiated using different

skills listening to the opinion of others, asking open

questions of issues before decision are taken, looking at

different position and giving alternatives position

Where there is need for us to disagree we need to know

how to refuse to take what we do not like.

27
 This is because there are times when people would

want others to do something they are not interested in.

We allow others to express their opinion on matters

which relate to them, this help us to reach an agreement

on most issues that affect society, this help conflict

resolution in society.

Leader and followers should learn to negotiate so that

there can be peace and progress in society.

Conflict management becomes easy where people in a

society obey the laws of the land people in authority

must not promote self interest.

Rivalry with groups must be settle through

understanding and allowing opinion of others.

28
 CHAPTER THREE

3.0 METHOD OF STUDY

3.1 Research Designed

The research design is used in the research is descriptive

survey, which seeks to explore the major element and

characteristics of any phenomenon

3.2 Population of Study

According to the national population commission in the 2006

census was 140, 000,000 estimates from this population a

total of two hundred (200) people will be sample.

The representatives 0.000143% of the total population.

3.3 Sample and Sampling Procedure.

The sampling procedure used in the survey is satisfied

random sampling

The total population that made up of the entry.

The researcher then used simple sampling to select

appropriate sample size from the populace.

29
3.4 Instrumentation

The instrument used by the researcher include.

Primary data

Secondary date

3.5 validity and reliability of instrument to ensure the validity and

reliability of the instrument, it was subjected to carefully

examination by the researcher

3.6 ADMINISTRATION OF INSTRUMENT.

The administration of instrument used by the researcher

includes:

Observation

Interval

Frequency Table.

30
 CHAPTER FOUR

4.0 DATA ANALYSIS AND DISCUSSION OF FINDINGS

4.1 Presentation of Data

Here, findings are analyzed to give solutions to each of

the research question using the response of the questionnaire

Solution to question 1

Why is it that most countries of the world decided to go for

commercialization and privatization?

Response to Question, 10, 16 and 17 in the questionnaire

administered to the respondents were used to answer question

TABLE 4.1

Response Value gotten percentages

Yes 195 97.5%
No 5 2.5%
Total 200 100

From the above table 4.1 one can easily deduce that

about 97.5% of the respondents supported the idea of

31
 commercialization and privatization to be encouraged in

Nigeria, some of the respondent pointed that Latin American

countries like Chile and Argentina has transferred large state.

Controlled telecommunication, railways, power and energy,

airline, mineral and oil and petroleum to private ownership

during the 1970 and 1980’s which implies that private hand

will reduce losses in area of management.

4.2 Data Analysis

SOLUTION TO QUESTION 2

Has privatization and commercialization in any way help

to solve the problem of unemployment in Nigeria?

Response to question 8, 11, 14 and 15 in the questionnaire

given to the respondents were used to answer question 2

TABLE 4.2

Response Value gotten percentages

Yes 173 86.5%
No 27 13.5%
32
Total 200 100

From the table 4.2 above the number of respondents

that canter the idea stand at 13.5% which is so small compare

to those that supported the responded point that many

countries had use the idea of commercialization and

privatization to solve the problem of unemployment (i.e.

places like Japan, Mexico etc.). Saying that they at better

position than Nigeria

They say, it will make more free enterprises for

individual involvement

Solution to question 3

Is Nigerian government mature enough to carry out

commercialization and privatization exercise?

Responses to question 7, 9, 18, 12 and 13 in the questionnaire

given to the respondents were used to answer question 3

TABLE 4.3

33
 Response Value gotten percentages
Yes 189 94.5%
No 11 5.5%
Total 200 100

In table 4.3 above respondents that says that Nigeria is

mature enough to handle and welcome privatization and

commercialization stands at high percent (i.e. 94.5%). The

reason is that more local or small industries will find their way

in all nooks and canines of Nigeria communities there by

ensuring effective competition.

Solution to question 4

What are the modalities for carry out privatization exercise.

Response to question 19 and 20 is used to handle question 4.

TABLE 4.4

Response Value gotten percentages

Yes 179 89.5%
No 21 10.5%
Total 200 100

34
 From the table 4.4 above 89.5% of the respondents give

several ways of modalities of carrying out privatization

exercise which for sale of shares of affected enterprise through

the Nigeria stock exchange.

Private placement of shares of affected enterprise.

Sales of assets where the affected enterprises cannot be sold

either by public offer of shares or by private placement of

shares management buy out (MBO) here sustained part of the

enterprises is sold to the workers.

Deferred public offer.

CHAPTER FIVE

5.0 SUMMARY, RECOMMENDATION AND CONCLUSION

5.1 Summary of Findings

In summary, we can say that the phase 1 of the

privatization has given the Nigeria economy some benefits like

Performance of the privatized enterprise so far has led to

a considerable increase in the volume of corporate taxes

35
accruing to the national treasury thus not only has the drain

on public finance bonus, with subsidy soaking deficit being

replace by tax yielding profits.

The sales of shares and assets realized over 3.7 billion a

gross privatization proceeds from the privatization on 55

enterprises whose total original investment according to the

records of the ministry of financed incorporated (MOFI) was N

652 million. This represents less than 2% of the total value of

the federal Government’s investment at 30th November 1990

which stood at N 36 Billion.

The programme of privatization has grately minimized

the scope of political patronage in the form of Board

appointment and jobs for the boys.

Under the phase 1 of the programme, the federal

government relinquished about 280 directorship position in the

privatized enterprises. The operational autonomy enjoyed by

these enterprises has put a stop to their use as dumping

36
grounds for political appointees at management and board

levels.

Privatization has massively expanded personal share

ownership in Nigeria, Over 800,000 shareholders were created

almost twice as many as there were in 1988 when the exercise

started. The programme has also intensified the operations of

the capital market, created new awareness in the virtue of

shareholding as a form of savings rather than an enlist

pastime which it was though to be.

This is a good development which enhances capital

formation and economic growth. By reducing the reliance of

public enterprises on the government for finance the

programme of privatization, has encouraged new investment

in the enterprises concerned.

The cold hands of treasury control have been replaced by

the worm hands of the capital market which are as stimulating

as they are invisible.

37
 Many of them have discovered that it is easier to raise

found through the capital market than it is to do so from the

treasury, once the necessary investor confidence that has

been developed.

The new operational autonomy of these enterprises and

their liberation from political interference in day to day

management has improved the internal efficiency on these

enterprises allowing them to liberalize their purchasing as well

as rationalize labour practices.

This has increased massively their profitability. The

negative perception of public enterprise in the mind of general

public as no body’s business has also changed.

Fluctuation of shares of privatized enterprises have

greatly stimulated the rapid growth of the Nigeria capital

market and help to depended and broaden it.

As stated earlier, market capitalization has grown from N

8.9 billion in 1987 to over N 65.5 billion by 1994 and N 428.9

billion as at August 2000.

38
 Privatization has allowed the management of privatized

enterprises full freedom to realize their optimum potential.

This has led to more productive employment and economic

growth in general terms.

5.2 Recommendations

For the general development the researcher

recommends that government and every well meaning

Nigerians to buy the idea of privatization and

commercialization there by placing more effort on both system

withdraw from that, and idea of not my father’s business and

monopoly.

5.3 Conclusion

In conclusion, if privatization must of necessity bring

forth the desired benefit, it has to be viewed not as an end

itself but as a means to get government interest in flustering a

new division labour between the public and private sectors in

order to increase the efficiency and contribution to

39
development of both sectors. Therefore, the success of

privatization should be judged not in terms of the sale or

contract itself or the price paid to government or even the

survival or expansion of the enterprises sold, but rather, on

the basis of whether there are net benefit to the economy

(Shirley 1998) privatization must result in better service at

lower prices as desired by consumers who, often times, are

not must bothered about economic philosophies.

If privatization does not bring tangible benefits in one

form or another, the opponents of privatization who argue that

the benefits are not worth the cost would feel justified and,

indeed as the F G N (1993) also correctly observed the

primary argument for Privatisation and commercialization of

course, that the efficiency and profitability of the investment

will Improve after the exercise.

At the end to the day, it is perhaps only a clear

demonstration of such improvement, which will convince

people who hold such (opposing) views.

40
 The ongoing Privatisation is a good policy measure,

which government must pursue with vigor. The Privatisation

equity loan program of government should be reactivated and

made available to the poor and civil servant.

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Ayodele S. (1988) Privatisation and Commercialization of

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to the study of public Administration”. Public

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Okigbo, P. (1998), “A layman’s Guide to Privatisation” Daily

Champion, May 4, 1998 pp24

Riveyemanu, A and G Hyden (1975) A Decade of Public

Administration in Africa Nairobi, Kenya, East African

Literature Review, Bureau, Nairobi

43
Ugorji, E.C (1995) Privatisation and Commercialization of

State owned Enterprises in Nigeria.

Strategies for improving the performance of the

economy cooperation Political studies 27(4), 573-

560

World Bank, (1991). “The Reform of Public Sector Management”,

Washington D.C Policy and Research services No18

Appendix “A”

The table in the appendix revealed that majority of the

privatized enterprises are doing well such that their price has
44
appreciated in the capital market Unipetrol (now Oando)

recorded negative growth rate the worst was Sun Insurance.

However, the services of majority of commercialized

enterprises have deteriorated for example National Electric

Power Authority (NEPA) now Power Holding company of

Nigeria (PHCN), Nigeria Telecommunication Limited (NITEL)

and Nigerian Railways corporation (NRC) deteriorated in

performance after commercialization Nigeria Postal services

(NIPOST) is the only exemption.

Letters now get to anywhere in Nigeria within 3 days as

against 14 days before it was commercialized.

QUESTIONNAIRE

On a topic effect of Privatisation and commercialization on

public enterprise

45
SECTION A.

1. Date of interview :

2. sex of respondent: Male [ ] Female [ ]

3. Age of respondents: 20[ ] 21-40 [ ] 41-60 [ ]

above 60 [ ]

4. Marital status: married [ ] single [ ] widow [ ]

5. occupation : farming [ ] business [ ] student [ ]

6. level of education: primary [ ] secondary [ ] tertiary

[ ] none [ ]

SECTION B

7. Will infant industries or firms stand when there are

Privatisation and commercialization? Yes [ ] No [ ] if

yes then comment

8. Unemployment will be reduce if Nigeria government

encourages Privatisation and commercialization? Yes [ ]

No[ ]
46
9. Will commercialization and Privatisation bring complete

free market system? Yes [ ] No [ ]

10. Has both any country of the world benefit from both

systems? Yes [ ] No [ ]

11. Has both in any way help to reduce national debt? Yes

[ ] No[ ]

12. Who is involved in the commercialization and Privatisation

exercise?

13. With the help of both, Nigeria economy will grow faster?

Yes [ ] No [ ]

14. Is it true that both breaks monopoly? Yes [ ] No [ ]

15. Can Nigerian’s office holder remain active if both systems

are encouraged? Yes [ ] No [ ]

16. Can both systems welcome foreign investors? Yes [ ] No

[ ]

17. Not my father’s business is not common in the said issue?

Yes [ ] No [ ]

47
18. Almost all Nigeria firms fail to stand because of non-

existence of Privatisation and commercialization? Yes [ ]

No[ ]

19. Measures are used to carry out both systems? Yes [ ] or

No [ ]

20. Nigeria involvement in the above issues have upgrade

some sectors of the economy Yes [ ] No [ ]

48