Privatization of Electricity Industry in Nigeria:
The interventionist development policies of the period resulted in the creation of a number of public enterprises. After World War II most countries, particularly developing countries, have attempted to use public enterprises to achieve economic and social objectives.
In most countries, public or collective goods and services, have always been made available by the state. They must be supplied collectively, for if a private entrepreneur supplies them, they cannot drive the community as a whole to pay him, nor would he be able to prevent anyone who did not pay him from consuming his products Paul, In order to put socio-economic development in motion and also guard government finance under conditions of capital lack and basic imperfections in private business organizations, Nigeria and most other African countries, regardless of ideological dispositions, unavoidably made fairly extensive use of public enterprises for resource mobilization and allocation, particularly within utilities and social services sector in the s through the s.
Public enterprise approach to resource mobilization and allocation has been in accord with the Keynesian approach to economic development, particularly since the post global economic depression Bos, These include corporation, authorities, boards, companies and enterprises owned and operated by the government Jerome, The Fourth National Development Plan states that: The actual performance of the public enterprises in Nigeria leaves much to be desired.
It is clear that many of them are not responding to the changing and dynamic economy. Some do not possess the tools for translating into reality, the hope of successful commercial operations. The level and quality of Personnel are sometimes mediocre and reflect the Worst traditions and rigidities of the civil service.
Even after so many years, the position of these enterprises did not improve despite government efforts to sustain their rapid development. Although, several factors accounted for the poor performance of public enterprises,Okereke Therefore, in order to bring about solutions to the poor performance of public enterprises and also, an increase in economic development, Nigeria embraced and adopted the privatization and commercialization policy through the Privatization and Commercialization Decree of as part of the Structural Adjustment Policy SAP of the Babangida regime Underlying the Structural Adjustment Policy, has been a new-liberal development strategy referred to as the Washington consensus which prioritizes the opening up ofnational economies to global market forces and the requirement for limited government intervention in the management of the economy Ayodele, One of the main objectives of SAP was to pursue deregulation and privatization leading to the removal of subsidies, reduction in the wage bills and the retrenchment of the public sector, ostensibly to trim the State down to size Egwu, The decree mandated TCPC to privatize three public enterprises andcommercialize thirty-four others, inthe TCPC concluded its assignment and submitted a final report privatizing eighty-eight out of the three enterprises listed in the Decree.
The privatization and commercialization policy aimed at making the enterprise more efficient by raising funds for the state, relieving the state of the burden of supporting non performing organizations and additionally stimulating competition.
The problems facing Nigeria today are testimony of the inadequacy of past policies to achieve good result. Besides, Nigeria is believed to have experienced relatively high quotient of violence, which is anchored on the political and economic crisis emanating from the Niger-Delta region, and this has negative ripple effect on the economy of Nigeria Ifionu and Ogbuagu, In addition to this, the power sector has over the past 25 years witnessed a slow and steady decline, leading to near complete failure of the system in Still, Nigeria cannot boast of a steady and economically priced power that can meet the need of the people.
At the beginning of the s, the country had entered difficult times. Scarcity of foreign exchange had set in. Retrenchment of workers was rampant in both private and public sectors. There was inflation, very high levels of unemployment affecting both skilled and unskilled workers, and low levels of plant capacity utilization.
The origin of the socioeconomic difficulties was generally traced to the global economic recession which opened with the decade of the s. Earlier, these socioeconomic problems had forced the Federal Government, under President ShehuShagari, to embark on an economic stabilization policy.
The problems of performance of the public sector enterprises in Nigeria were further complicated by the downturn in socioeconomic development in the country due to the global economic recession and the collapse of the oil market.
Thus, towards the end of s, the public enterprises, which had grown too large, began to suffer from fundamental problems of defective capital structures, excessive bureaucratic control and intervention, inappropriate technologies, gross incompetence, and blatant corruption Akinpelu, The chapter contains a brief narrative on public enterprises in Nigeria with impact on Nigeria’s economic development, the concept of privatization and commercialization, history of thepolicy and the evolution of the Power Holding Company of Nigeria (PHCN) and its activities in Nigeria.
Free Privatization papers, essays, and research papers. Pros and Cons of Privatization - Privatisation means transferring the control of an enterprise from the government sector to the private sector. Thesis on privatization in nigeria ph.
d thesis: staff recruitment, retention strategies and performance of selected public and private organizations in nigeria If you are getting stuck on the introduction, shift your focus towards the main body of the essay, then, revisit it after youve read your work.
Evaluation of Privatization Policy in Nigeria ( - ) - A Study of Bereau for Public Enterprise (BPE) - Peter Ogwuche Iduh - Master's Thesis - Economics - Case Scenarios - Publish your bachelor's or master's thesis, dissertation, term paper or essayPages: Nigeria, the telecoms company and the fiscal impact of the whole privatization process on the Nigerian economy and labour market; while the paper is concluded with remarks on the privatization of the specific utility companies ; what are the conclusion as to the efficacy of the privatization activities in the Country.
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It is defined as the transfer of state owned resources to private control. ADVERTISEMENTS: This can be achieved through direct [ ].