THE EFFECT OF PRIVATIZATION AND COMMERCIALIZATION THE NIGERIAN ECONOMY

ABSTRACT 

The privatization and commercialization of Nigerian enterprises today, faces a 

lot of challenges in tackling the menaces of corruption and mismanagement of 

public funds. 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 enterprises institution 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 the affairs of public enterprises. This study concluded by saying 

that the effect of privatization and commercialization on the Nigerian economy 

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.         

 

 

TABLE OF CONTENTS 

Title page 

Approval page 

Dedication 

Acknowledgement 

Abstract 

List of tables 

 

Chapter one:  

Introduction 

1.1     Background of the study                                                               1  

1.2     Statement of the problem                                                              3 

1.3     Objectives of the study                                                                  4 

1.4     Statement of hypothesis                                                                 5 

1.5     Significant of the study                                                                 5 

1.6     Scope and limitation of the study                                                  6 

1.7     Definition of terms                                                                        7 

 

Chapter two 

Literature review 

2.1   Theoretical framework                                                                       8 

2.2   Reason for the establishment of the public enterprises in Nigeria     11 

2.3   Rational for privatization and commercialization in Nigeria             13 

2.4   Privatization and commercialization programme in Nigeria               15 

2.5   Technical committee on privatization Act of (1988) (TCPC)             16 

2.6    Bureau for public Enterprises Act of 1993                                              17 

 

2.7    Public enterprises privatization and commercialization Act of 1999      18 

2.8    Politics of privatization and commercialization in Nigeria                     19 

2.9    Privatization and commercialization exercises (1999-2010)                 20 

2.10   Empirical literature reviews                                                                   22 

 

Chapter three 

3.1   Research methodology                                                                            26 

3.2   Model specification                                                                                  27 

3.3   Method of evaluation                                                                                 27 

3.4   Justification of the model                                                                      28 

3.5   Research Approach                                                                             28 

 

Chapter four  

PRESENTATION AND ANALYSIS OF RESULT 

4.1 Presentation and interpretation of results                                           30 

4.2 Economic apriori criteria                                                                     32 

4.3 Statistical criteria (first order test)                                                     33 

4.4 Econometric criteria                                                                            36 

 

 Chapter five 

 SUMMARY CONCLUSION AND RECOMMENDATIONS 

5.1   Summaries of findings                                                                       42 

5.2   Conclusions                                                                                        43 

5.3    Recommendations                                                                             44