THE IMPACT OF PRIVATIZATION AND COMMERCIALIZATION OF PUBLIC ENTERPRISES ON ECONOMIC GROWTH OF NIGERIA

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ABSTRACT

So much effort has been made towards understanding the relationship between privatization and commercialization and the economic growth of Nigeria. Privatization and commercialization of pubic enterprises in every economy is introduced for the attainment of specific objectives which includes economic growth and stability. Data was collected and analyzed using ordinary least square method (OLS). The result of the study shows that there is a positive but insignificant impact of private investment on the economy, this due to lack of investment in the private sector. On the strength of this evidence, this work recommends that the government should allow the private sector to establish major companies like electricity generating companies, water supply companies etc. This study finally concludes by saying that the impact of privatization and commercialization of public enterprises on economic growth 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.


CHAPTER ONE



INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Several experts and informed opinions have presented privatization and commercialization as one of the bitter pills to be taken by

Nigeria’s in order to recover from economic slump, it to a great extent helps to solve some vital problems that has led to the untimely devastating problems is the syndromes of “not- my fathers- work” which has greatly and negatively affected both smooth running and performance of the these enterprises. The privatization policy was recommended by the onside report of 1982 by the Athakem study group of statutory corruptions and state owned corporations set up in September 1984, the competence of chief Executives of Nigeria public enterprises held in Jos, plateau state in May 29-30, 1985 and by international minatory fund, as a condition for is loan to Nigeria.



Public enterprises in Nigeria has been considered as inefficient and wasteful, this is because they have viewed it wish the profit criterion. According to a school of thought asserting the activities for public enterprises with the profit criterion is not always a fair judgment.......
  


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