The Privatization Policy In Nigeria An Evaluation Of Its Implication (A Case Study Of Nigeria National Petroleum, NNPC)

Project and Seminar material for Public Administration

The Privatization Policy In Nigeria An Evaluation Of Its Implication (A Case Study Of Nigeria National Petroleum, NNPC)


Abstract


This study was carried out to examine the the privatization policy in Nigeria an evaluation of its implication with a special reference to NNPC. Specifically, the study determine the contribution of privatization towards the growth and development of NNPC and Nigeria as a whole. The study also determine/identify major problems associated with privatization of public enterprises using NNPC as a focus study. The study further itemize solution to problems of privatization of public enterprise with particular reference to NNPC.Lastly, the study make recommendations on privatization policy in Nigeria.The study employed the survey descriptive research design.A total of 30 responses were validated from the survey. From the responses obtained and analyzed,the findings revealedthatthe impact of privatization towards national growth and development is improve efficiency, provide fiscal relief and increase the availability of credit for the private sector. The study also revealed the problems associated with privatization of public enterprise is the unablement to attract credible foreign investors,lack of political and economic stability and lack of conducive business environment. Furthermore, the nature of privatization policy is the transfer of ownership, property or business from the government to the private sector the process by which a piece of property or business goes from being owned by the government to being privately owned. More so, the implications of privatization is increase in tax and profit revenue,It brings about innovation and creativity and spurred economic growth and improved services. Lastly, the solutions associated with the privatization is savings of taxpayers’ money, improve service quality and streamline and downsize government. The study thereby recommend that the revenues accrued from the sale of government properties, should be reinvested in a tangible public interest, such as education, health, and other social services. Also, there is a need for government to keep reliable data on the employment levels, especially before and after the privatization exercise to see whether employment is increasing or decreasing as to douse unnecessary tension of labor unions.


Chapter One


1.0 Introduction

1.1 Background to the Study

The Nigerian National Petroleum corporation and the petroleum ministry appear desperate to maintain their hold on the downstream sector of the oil industry by planning new refineries and voting more money to maintain the existing refineries such as Enugu, Kaduna, Warri and Port-court

The moves have undoubtedly raised doubts about the federal government’s privatization policy and its avowed commitment to the liberalization of the+ oil industry.

According to Austin Oniwon (2006), the NNPC group managing director the corporation is forging ahead with its plans for the construction of Greenfield refineries and petrochemical plants.

According to Okorie .M. (2006:231) privatization can be defined as the selling and transferring of at least part of the state ownership of a corporation to private owners. It can be defined as the process where by the government handover its management or assets of services to private interest.

According to Odike .J. (2002: 263) privatization is a direct obverse of nationalization. It involves the sales of formerly public enterprises to private individuals and groups. Privatization can also be partial (government still retiring some shares in the businesses) or total (ownership is entirely transferred to the private persons who have paid an agreed amount to the government).

In Nigeria, the Decree No. 25 was enacted in July 1988 to set up the privatization and commercialization programmes. As at this year 2006, it has not been possible to carry out a comprehensive privatization of government enterprises.

On 18th, 2002, the Federal Government has suspended its planned privatization of Nigeria National Petroleum Corporation (NNPC) refineries and its subsidiaries until all issues raised by workers in the industry are resolved. A committee headed by employment, labour and productivity, minister Alhaji Musa Gwadabe has been set up to critically examine and resolve all workers concern as well as that of other stakeholders.

The privatization and commercialization Act of 1988, which later set up the technical committee on privatization and commercialization (TCPC) Chaired by Dr. Hamza Zayyad with a mandate to privatize III public enterprises and commercialize 34 others. In 1993, having privatized 88 out of the III enterprises listed in the decree. The TCPC concluded its assignment and submitted a final report which NNPC is inclusive.

Operators in the oil and gas industry has warned that the proposed privatization of the Nigeria National Petroleum Corporation (NNPC) may not succeed unless the federal government put in place necessary measures to ensure that the budgeted plan model does not go the way of Nigerian Telecommunications Company (Nitel). Industry Operators agreed that the privatization of the national oil company is the best thing, that could happen in the sector. They, however, cautioned the government to avoid the mistakes made with Nitels privatization.


1.2 Statement of the Problem

The issue of privatization has been a subject of intense global debate in recent years. In Africa, it has remained highly controversial and political risky. Privatization in Nigeria (NNPC) has not been a popular reform. It has received so much criticism from labour, academic and individuals. There have been numerous strikes against proposed sell-offs by unions fearing loss of jobs. While proponents of privatization see that aspect of economic reform as an instrument of efficient resource management for rapid economic development and poverty reduction, the critics argue that privatization inflicts damage on the poor through loss of employment, reduction in income, and reduction access to basic social services or increases in prices. Indeed, despite the fact that privatization has taking place on our oil sector, the economy still softer the above mention problems up to date.


1.3 Objectives of the Study

The objectives of the study include the following

  1. To determine the contribution of privatization towards the growth and development of NNPC and Nigeria as a whole.
  2. To determine/identify major problems associated with privatization of public enterprises using NNPC as a focus study.
  3. To itemize solution to problems of privatization of public enterprise with particular reference to NNPC.
  4. To make recommendations on privatization policy in Nigeria.

1.4. Research Questions

  1. What is the impact of privatization towards national growth and development?
  2. What problems are associated with privatization of public enterprise (NNPC).
  3. What is the nature of privatization policy on NNPC?
  4. What are the implications of the above policy towards their organizational goal attainment?
  5. What is the solutions associated with the privatization of NNPC.

1.5 Significance of the Study

It is intended that the result of this study will help in the following ways:

  1. It will benefit the management to know their operation capacity in the society as well as understanding their major strength and weakness.
  2. The federal government will benefit on the ground whether to privatized all the public assets or on a contrary.
  3. It will position the management to know the level of customer satisfaction with their view towards privatized product.
  4. The reader will also benefit from the work which may serve as reference material.
  5. The federal and managerial committee to NNPC will benefit on some essential policy not covered in the course of their policy initiation.

1.6 Scope of the Study

The scope of the study under the privatization policy in Nigeria starting from 2000-2010 will based on Nigeria National Petroleum Corporation (NNPC) as one of Public enterprise in the country will was totally owned by government but due to some set back the federal government see the need to privatized partly o private enterprise whom they think assume they can manage it better.


1.7 Definition of Terms

NNPC:

Nigerian National Petroleum Corporation

Privatization:

Privatization can be defined as the selling and transferring of at least part of the state ownership of a corporate to private owners. Also, it can be defined s the process where by the government handover its management or asset of service to private interest.

Policy:

This can be define as a plan of action agreed or chosen by a political party, a business etc over what to be done and means of achieving such plans.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

In this study, our focus was on the privatization policy in Nigeria an evaluation of its implication using the Nigeria national petroleum corporation(NNPC) as a case study. The study specifically was aimed at highlighting the contribution of privatization towards the growth and development of NNPC and Nigeria as a whole, determine / identify major problems associated with privatization of public enterprises using NNPC as a focus study, itemize solution to problems of privatization of public enterprise with particular reference to NNPC and make recommendations on privatization policy in Nigeria. A total of 30 responses were validated from the enrolled participants where all respondent are drawn from staff of NNPC.


5.2 Conclusion

Based on the finding of this study, the following conclusions were made:

  1. The impact of privatization towards national growth and development is improve efficiency, provide fiscal relief and increase the availability of credit for the private sector.
  2. Problems associated with privatization of public enterprise is the inability to attract credible foreign investors,lack of political and economic stability and lack of conducive business environment.
  3. The nature of privatization policy is the transfer of ownership, property or business from the government to the private sector the process by which a piece of property or business goes from being owned by the government to being privately owned.
  4. The implications of privatization is increase in tax and profit revenue,It brings about innovation and creativity and spurred economic growth and improved services.
  5. The solutions associated with the privatization is savings of taxpayers’ money, improve service quality and streamline and downsize government.

5.3 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

  1. That the revenues accrued from the sale of government properties, should be reinvested in a tangible public interest, such as education, health, and other social services.
  2. There is a need for government to keep reliable data on the employment levels, especially before and after the privatization exercise to see whether employment is increasing or decreasing as to douse unnecessary tension of labor unions.
  3. Also, the government should take it as a matter of importance, to put in place a mechanism through which irregularities and another form of corruptive tendencies associated with the policy could be curbed.

Project Material Download

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
PalmPay Main LogoAcc No: 8143831497
Samphina Academy
Digital 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 Privatization Policy In Nigeria An Evaluation Of Its Implication (A Case Study Of Nigeria National Petroleum, NNPC)

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.