The Policy Of Privatization And Commercialization Of Public Enterprises In Nigeria: An Appraisal Of Telecommunication

Project and Seminar Material for Political Science

The Policy Of Privatization And Commercialization Of Public Enterprises In Nigeria: An Appraisal Of Telecommunication


Abstract


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 enterprise institutions 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 affairs of public enterprises. The project title is the policy of privatization and commercialization of public enterprises in Nigeria: An appraisal of telecommunication. The problems are; is political interference and mismanagement of resources responsible for the poor performance of public enterprises in Nigeria? Could policy of privatization and commercialization enhance the efficiency of public enterprises? Structural-functional theory is used as suitable framework of analysis for the policy of privatization and commercialization of public enterprises in Nigeria.

The researcher reviewed some relevant textbooks, also used the secondly method of data collection. He found out that privatization is seen as means to harness economy or as measure to increase efficiency of the public sector or organization. Also, the privatization and commercialization has improved the potential, the efficiency and service delivery in Nigeria by making telecommunication easily accessible and affordable. These are the recommendations; as the privatization is in the hands of few individuals government should ensure that before granting the license or opportunity, they should examine and select the competent people who will handle private enterprises and not people of questionable character. The only thing left is for government to hands – off from those enterprises as advocated in the current or present privatization and commercialization exercises.


Chapter One


General Introduction

1.1 Background of the Study

The importance for the establishment of public enterprises or corporations was felt in 19th Century and there after. There were a lot of upheavals in European society because of industrialization and urbanization. Social issues like unemployment and economic inequalities necessitated state intervention in economies. Britain is widely referred to as the father of public enterprises.

A good number of African Countries chose the public sector for economic and social development. This account for the reason why many more functions like industrial production, transport, social services, communication etc were assigned to the state in addition to its traditional functions like security, justice etc.

Despite the several exercises of Nigeria economic policies to promote agriculture, industries and other activities, government still depend on monoculture commodity (oil) which failed to provide good capital investment and development due to weak technological base, poor managerial skill etc. This promoted or enhanced the desire to establish various enterprises and massive establishment of government agencies and institutions. 1979 constitution of Nigeria described the official operating of these enterprises and public servants they managed as well as private enterprises. After reviewing the performance of the Nigeria Railway Corporation in 1967 the commission that carried out the exercise recommended that corporation should have an Executive Board whose Chairman would also be the Chief Executive.

The government enterprises require constant financial backing for the smooth running. Due to inadequate capital and lack of financial autonomy public enterprises in Nigeria are confronted with a lot of problems, by managers and employees, government interference, inadequate capital, technological limitation, and political interference in the affairs of public enterprises in Nigeria.

Since monoculture economy cannot meet the demand or generate large sum of revenue to run the economy or by public enterprises, the government seeking ways to reduce the rapid increase of bad economy by adopting policy to boost our economy.

Privatization and commercialization policies are adopted by federal government as a remedy to problems that emanated from public enterprises. There are economic policies which grant full autonomy to public enterprises so that they can operate without government subvention, control and interference which ultimately resulted in efficient provision of service and high productivity that contribute to national growth and development. Although, these two concepts have identical goals and purpose, that is provision of efficient services to the public, high productivity and profitability, yet, they are different in nature and character.

The Federal Government of Nigeria in (1988) through Decree No. 25 set up the Technical Committee on Privatization and Commercialization (TCPC). The TCPC was charged with the responsibility of privatization and commercializing some selected government enterprises. The main reason was to promote greater efficiency and productivity in the public enterprises.


1.2 Statement of Problem

Public enterprises were established by the Federal Government especially in the 1960s and early 1970s when the public sector was seen as a major contributor to economic growth and socio-political stability. The public enterprises of Nigeria set up by government to perform definite social and economic functions for the public.

The functions that informed the establishment of these public enterprises are to control the resources and raise funds for the provision of certain infrastructure facilities particularly in service requiring heavy financial investment e.g. Railway, Electricity, Telecommunication etc. also, to perform the function of generating revenue that will add for financing development programme and projects as veritable instrument for creation of jobs.

Therefore, since those functions are not performed, creditable, or efficiently privatization and commercialization policy is introduced by Federal Government of Nigeria. In identifying the problems militating against their performance, the problems are stated clearly below:

  1. Is political interference and mismanagement of resources responsible for the poor performance of public enterprises in Nigeria?
  2. Could policy of privatization and commercialization enhance the efficiency of public enterprises?
  3. Does the privatization and commercialization improve the potential, the efficiency and service delivery in Nigeria telecommunication?

1.3 Objective of the Study

There are some certain aims and objectives for which the researcher embarked on this work such as:

  1. To ascertain if political interference and mismanagement of resources is responsible for poor performance of public enterprises.
  2. To ascertain if privatization and commercialization could enhance performance of public enterprises.
  3. To discover if the privatization and commercialization of public enterprises has improved the efficiency of service delivery.

1.4 Significance of the Study

The importance of any research is tied to find out solutions to the various problems that face mankind in the environment or society. The study creates awareness to every citizen of this country and economic planners on the implications of these privatization and commercialization of the public enterprises in Nigeria economic development.

It helps policy makers to assess the performance of NITEL following the privatized and commercialization policy. It helps researchers on contemporary issues have first-hand knowledge of the performance of privatized and commercialized public enterprises.


1.5 Hypotheses

According to learner’s dictionary hypothesis is an idea or explanation of something that is based on a few known facts but that has not yet been proved to be true or correct.

Therefore, based on the nature of this work the researcher possesses the following hypotheses to guide the study.

  1. Political interference could affect the efficiency or performance of public enterprises.
  2. The policy of privatization and commercialization could enhance the efficiency of public enterprises.
  3. The privatization and commercialization has improved the potential, efficiency and service delivery in Nigeria by making telecommunication easily accessible and affordable.

1.6 Scope of the Study

The scope of this study is limited to the activities of privatization and the commercialization of public enterprises in Nigeria which was enhanced as a result of the inadequacy and failure surrounding its activities and programmes to the public which are the major benefactors of the services been rendered by these public corporation. It is limited to 1985-2009.


1.7 Definition of Concepts

Privatization:

Privatization is the policy of selling off public enterprises to individuals, groups and organizations; they should operate under the principle of profitability, effectiveness, efficiency and viability than in public interest.

Commercialization:

Commercialization is a policy in which government grants full commercial status to corporations which enable them to operate strictly under business principles and practices without government control or interference and exercising absolute financial autonomy.

Public Enterprises:

According to Ogunna (1999), who sees public enterprises as enterprises set up by government to perform definite social and economic functions for the public .

Telecommunication:

According to Oxford Learner’s Dictionary telecommunication can be known as the technology of sending signals, images and messages over long distances by radio, mobile phone, satellite etc.

Political Interference:

It can be defined as a situation whereby the government or leaders are in control of the affairs or activities of the public for their own interest.


Chapter Five


Summary, Conclusion and Recommendations

5.1 Summary:

In the chapter we explored the meaning and the main objective of privatization including, improving economic efficiencies against the background of poor economic performance of Public Enterprises, reducing government interference in the economy, reducing the administrative burden of government, providing opportunity for competition etc.

Generally, this research work was designed to analyse the implication of privatization and commercialization of public enterprises with an over view or special reference to Nigeria Telecommunication Plc.

In the year 1960s and 1970s public enterprises were regarded as veritable tools for achieving national socio-economic development particularly in the developing countries. It noted that public enterprises enjoy freedom in the management of their affairs.

It noted that the performance of public enterprises especially in Nigeria has been generally disappointing due to excessive political interference, absence of competitive environment, corruption and poor infrastructures.

The policy of privatization and are more efficiently and effectiveness strictly on socio-political and economic growth rather than public enterprises. The policy contributed a lot in improvement of productivity. Privatization was seen as a means of harmonization of economy or as a measure to increase efficiency of the public sector or organization.

It was seen that inefficiency of the most government enterprises were due to incompetent leaders or mal-administration and nonchalant attitude of leaders.

Finally, the two most common forms of public enterprises reforms and commercialization were identified and discussed. Privatization is seen as solution to all these infectiveness and inefficiency of public enterprises.


5.2 Conclusion

In conclusion privatization has been seen as a means to get government interested in fostering a new division of labour between the public and private sectors in order to increase the effectiveness and contribution to development of both sectors. Therefore, the success of privatization should be judged not in terms of the sale, the price paid to government or expansion of enterprises sold but rather, on the basis of wealth.

It is very clear that we cannot exclude economic from politics and it is well-known that the basic problem facing public enterprises in Nigeria is control or management. This cannot be addressed through privatization. Honestly, the exercise reduces real income and encourages people in economic recovery.

As the Federal Government of Nigeria (FGN) 1993 also currently observed the primary agreement for privatization and commercialization is of course, that the efficiency and profitability of the investments will improve after the exercise.

Therefore, the National Telecommunication Policy presents the policy objectives of the Federal Government of Nigeria in promoting the development and utilization of telecommunications infrastructure and services, accelerating the socio-economic and political development of the nation and enhancing the quality of life of the Nigerian citizens. The Federal Government of Nigeria is confident that if the policy is implemented citizens will reap the benefits of improved and affordable telecommunications as the engine of growth of national economy.

Finally, it is work of government to restructure the economy of the country and harness the political and economic power. These exercises bring about competition from various private enterprises in Nigeria Telecommunications sector such as; Mobile Telecommunication Network, ETISALAT, Global COM, Zain, etc. Also, since those private enterprises have performed efficiently and effective, means of communication is very easy, cheap and the programme create job opportunities, economic development etc.


5.3 Recommendations

This research work has analysed the reasons and rationale for privatization and commercialization on the citizens and on the productive efficiency of the public enterprises. The researcher suggested the following:

  1. As the privatization programme are in the hands of few, Government should ensure that before granting the license or opportunity, they should examine and select the competent people who will handle private enterprises and not people of questionable character.
  2. The necessity of telecommunication is to improve the low level of communication in the country. Government should provide enabling environment to all the thirty six states so that, there will be harmony of interest in different geographical location.
  3. The only thing left is for government to hands – off from those enterprises as advocated in the current or present privatization and commercialization exercises.

Finally, the above recommendations are aiming to be considered and embarked on. The programme will enhance the economic stability and development. Also, reduce or exterminate the unequal distribution of resources. Since public enterprises are gradually replaced by private sector, it will bring more efficiency in the production or economic development.


Get Complete Project Material

5,000 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…


Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to Any of the Account Below

Access Bank PlcAcc No: 0811003731
Samphina Academy
Current Account
Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card


FOR STUDENTS OUTSIDE NIGERIA
CLICK HERE To Purchase Material ($15)
FOR GHANIAN STUDENTS
Make Payment of 120 GHS to 0553978005 | Douglas Cloud Osabutey | MTN MoMo

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: The Policy Of Privatization And Commercialization Of Public Enterprises In Nigeria: An Appraisal Of Telecommunication

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply


  Contact Our Help Desk


Need a Different Topic? Perform a Quick Search



List of Related Works

Click on Any Topic to Preview the Content

samphina.academy

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.