PRIVATISATION AND COMMERCIALIZATION AS AN INPETUS TOWARDS ECONOMIC
DEVELOPMENT IN NIGERIA
(A STUDY OF TELECOMMUNICATION)
RESEARCH PROJECT
WRITTEN BY
YOUR NAME
MATRICULATION NO.
SUBMITTED TO FACULTY OF BUSINESS ADMINISTRATION IN PARTIAL FULFILLMENT
FOR THE AWARD OF B.SC IN BUSINESS ADMINISTRATION
AUGUST 2012
ABSTRACT
This
is a 69 page project that focused on Privatization and Commercialization as an
impetus to Economic Development of Nigeria, A Study of Telecommunications. Countries
all over the world in their efforts to achieve industrial growth and
development often time embark on one developmental strategy or the other. This
is as a result of immense benefits associated with industrialization. To
achieve sustained growth and development that will increase the social benefits
and welfare that will accrue to Nigerians, the federal government has adopted
various strategies to save the country’s economy from the wool and to move the
nation forward. Privatization and Commercialization were some of the strategies
and policy measures of the government, taken to move Nigeria to her Promised
Land. This project x-rayed various privatization and commercialization
programmes of Nigerian Government starting from 1988 till date. The various
objectives of the programmes, problems encountered and successes achieved in
the implementation of the programmes were also examined. Some research
questions examined include:- What were the impacts of Privatization and
Commercialization on Economic Development of Nigeria? To what extent did the
Privatization and Commercialization exercise of the federal government achieved
the intended objectives of the government?
Some hypotheses tested include: the privatization and commercialization
programme of the federal government does not impact positively on Nigeria’s
economic development; corruption among political class and government officials
did not negatively impact on the success of Nigeria’s Privatization and
Commercialization programme. It was found from the study that corruption among
political class and government officials did negatively impact on the success
of Nigeria’s Privatization and Commercialization programmes. Nigerian
government can improve on the success of future privatization and
commercialization programmes by adopting strategies that will eliminate
corruption in the society. Corruption has actually eaten deep into the fabrics
of our society. However efforts can be made to reduce the evils of these ills
in the society called corruption.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background
to the Study
Countries all
over the world in their efforts to achieve industrial growth and development
often time embark on one developmental strategy or the other. This is as a
result of immense benefits associated with industrialization.
As a nation
industrializes, the productivity level of such a country will increase thereby
leading to increase in the aggregate Gross Domestic Product and cumulatively
towards the achievement of higher National Income and higher Per Capital Income
which is a measure of standard of living and social benefits accruable to such
a society.
According to the
classical economists like Adam Smith (1776), John Stuart Mills and David
Ricardo (1817) production is the process of creating and expanding wealth of a
nation. Through increased productive activities, a country’s standard of live
can be increased tremendously which shall ultimately lead to higher social
benefits that shall be enjoyed by the people of that society.
As noted by Karl
Marx in his political economy, the production and reproduction of the material
existence of a society is essential for its continued existence. Thus people’s
productive activity is the primary condition of existence because for people to
eat and sustain themselves, they must work. To Frederick Engels “work creates
Man himself”. It is only by labour that people create and recreate their entire
material life (Anifowose R. & Enemuo F. (2008).
To achieve
sustained growth and development that will increase the social benefits and
welfare that will accrue to Nigerians, the federal government has adopted
various strategies to save the country’s economic from the wool and to move the
nation forward. Privatization and Commercialization are some of the strategies
and policy measures of the government, taken to move Nigeria to her Promised
Land.
In July 1988,
the Federal Government of Nigeria promulgated Decree No. 25. This Decree
outlined how the policy of Privatization and Commercialization shall be
executed in Nigeria. The motivation for embarking on this policy was due to the
government’s desire to reverse the economic difficulties that have arisen in
the society as a result of decades of the state acting as a major and
dominating producer of goods and services in the country. The primary aim is to
reduce the size and expenditure of government, and the promotion of efficiency
and effectiveness in the economic sector of the country.
Since Nigeria
got her independence in 1960, Nigerian government has been taking active roles
in running the economic affairs of the country. The state have dominant control
in the management of such important activities like banking, insurance,
agriculture, manufacturing, mining, commerce, construction, provision of health
facilities, supply of energy, communication, transportation and provision of
basic goods and services.
For instance,
prior to the government privatization and commercialization exercise, there
were about 70 non commercial and 110 commercial state-owned enterprises which
depended on public funds and management for their operations. In monetary
terms, the Federal Government invested or held equity shares of over N36
Billion in about 500 enterprises. A good number of them were inefficient and
unprofitable ventures that depended on state funds. The direct consequent of
this and scope of public involvement in the economy was that about 40 percent
of the country’s annual capital expenditures were expended on public
enterprises.
After this long
period of difficult-to-manage phenomenal growth in the size of the state,
followed an era of shrinking public resources worsened by huge foreign debts
and service obligations. In addition, there exist economic constraints on
government activities and deeply declined ability to continue supporting
largely unprofitable public enterprises. With the strong influence of
International Monetary Fund (IMF), World Bank and the Structural Adjustment
Programme which these international bodies insist that Nigeria must adopt in
order to continue obtaining from international capital, credit investment and aid.
Nigeria had no alternative but to embrace the economic philosophy of reducing
the size of the state bureaucracy through privatization and commercialization
of public enterprises.
1.2 Statement of the Problem
Before the
privatization and commercialization exercise of the Federal Government, most
government funded and managed establishments were inefficiently and
ineffectively managed. These establishments were pipes through which the
nation’s wealth was siphoned to the drains. The mentality and orientations of
many Nigerians then was that government’s property was no body’s property.
Anybody that therefore assume any managerial and leadership position then
capitalize that as opportunity to amass wealth and steal the nations wealth.
Consequently, looting of national wealth went on unbridled. The politicians,
the military, the bureaucrats, civil servants and those in one position of
authority or the other both at the federal, state and local government levels
in the country used that as opportunities to loot the national treasury at the
detriment of the common people who did not have the opportunity of being in
government or of holding one official post or the other. Consequently, the
nation’s wealth were not evenly distributed. The income gap between the rich
and the poor was interpolated. The society which hitherto had no social class
structure became dissected into two classes – the poor and rich. The middle
class disappeared from the nation’s income class. This ugly trend continued
unabated with the poor continuously languishing in abject poverty. The ugly
consequence of these was that our morals and social values as a people were
thrown to the mud. The social values that bided us together went to the blues.
Bribery and corruption became the other of the day. It was no longer the end
that justify the means but rather the means that justify the end. Our people no
longer care how you made wealth but rather whether you made wealth. Chieftaincy
titles and honours are now bestowed on boys of underage just because they can
pay for them. Thus our symbol of honesty and personal dignity became what can
be purchased by money.
1.3. Aim and Objective of the Study
The main aim of
this study is to find out whether Privatization and Commercialization actually
act as impetus on national development.
Other objectives
of this study are:-
i.
To identify the impact of Privatization
and Commercialization on Economic Development of Nigeria
ii.
To identify the extent the Privatization and
Commercialization exercise of the federal government achieved the intended
objectives of the government.
iii.
To identify the problems that hindered the
Privatization and Commercialization exercise of the federal government.
iv.
To identify means that these problems can be solved.
v.
To identify the best strategies to use to improve on
future privatization and commercialization programmes of the government.
1.4. Relevant Research Questions
The following
questions were asked in this study:-
1.
What are the impacts of Privatization
and Commercialization on Economic Development of Nigeria?
- To what extent did the Privatization and Commercialization exercise of the federal government achieved the intended objectives of the government?
- Identify the problems that hindered the successful operation of the federal government’s privatization and commercialization programmes?
- In what ways can these problems be solved?
- Are there ways that the government can improve on their future privatization and commercialization exercise?
1.5. Relevant Research Hypotheses
1. H1:
The privatization and commercialization programme of the federal government
impacts positively on Nigeria’s economic development.
H0:
The privatization and commercialization programme of the federal government
does not impact positively on Nigeria’s economic development.
2. H1:
The Privatization and Commercialization programmes of the federal government
have achieved the intended purpose.
H0:
The Privatization and Commercialization programmes of the federal government
have not achieved the intended purpose.
3 H1:
Corruption among political class and government officials did negatively impact
on the success of Nigeria’s Privatization and Commercialization programmes.
H0:
Corruption among political class and government officials did not negatively
impact on the success of Nigeria’s Privatization and Commercialization
programmes
4. H1:
Sincerity on the part of the government in the implementation of the future
Privatization and Commercialization programmes can make the exercises
successful.
H0:
Sincerity on the part of the government in the implementation of the future
Privatization and Commercialization programmes cannot make the exercises
successful.
5. H1:
Nigerian Privatization and Commercialization programmes brought about income
inequality among Nigerians.
H0:
Nigerian Privatization and Commercialization programmes did not bring about income
inequality among Nigerians.
1.6. Scope of the
Study
This study focused on Privatization and
Commercialization as an impetus towards economic development in Nigeria – A
Study of Telecommunication. In this study, the researcher investigated how
Privatization and Commercialization contributes towards economic development in
Nigeria. This study also identified some problems that impeded the successful
implementation of the federal government’s privatization and commercialization
programmes and also suggested ways that these problems could be solved. This
study also x-rayed the state of corruption and looting going on in the state
owned organizations that brought about inefficiency and ineffectiveness in the
management of these establishments which subsequently led to their
privatization and commercialization. This study also examined government’s
insincerity in implementing these programmes and also suggested means of making
future privatization and commercialization exercise successful.
1.7. Significance of Study
The government’s
privatization and commercialization programmes as presently being implemented
in Nigeria are faced with several problems as it was pointed out the previous
section of this study. At the end of this study, solutions shall be found for
most if not all the problems that confront this exercise presently. The
findings of this project shall be hosted on the net and made accessible to
those that are vested with the responsibility of this privatization and
commercialization programme. This study shall also act as a good reference
point for future users and readers. It is hoped that the other students in
other Nigerian tertiary institutions as well as the larger society shall
benefit from this work since this projected shall be made available in
libraries and other educational centres throughout Nigeria where people can
have access to them.
1.8. Definition of
Terms
Commercialization: This is the process of making
government owned and funded establishments to be self sustaining and profit
oriented
Economic
Development: This is the process
by which a high degree of self-reliant economic growth in a given society,
sustained over a long time, is associated with a substantial reduction in
poverty, unemployment and inequality.
Deregulation: This means removal
of controls, rules, restrictions or standards on the operations of a
functioning system.
Indigenization: This is the transfer
of equity shareholding and ownership in companies to the indigenes of a country
or a state
Privatization: This the process
whereby government equity interests in companies, corporations and parastatals
are being sold to private individuals and companies including foreigners
Subsidy: Money paid
by a government to help an industry
REFERENCES
1.
Adebayo, A. (1999) Economics, A Simplified Approach,
Lagos: African International
Publishing Ltd, page 210.
2.
Anifowose, R. and Enemuo, F. (2008) Elements of
Politics, Lagos: Sam Iroanusi
Publications, pages 44-45.
The complete part of this project is
available for sale
PROJECT PROPERTIES
Project Status
|
Available
|
Number of Chapters
|
5
|
Number of Pages
|
68
|
Number of Words
|
15,383
|
Number of
References
|
16
|
Project Level
|
B.Sc.
|
Price
|
N15,000
(Non-Negotiable)
|
Abstract, Sample of
Questionnaire are included
|
|
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