PRIVATISATION AND COMMERCIALISATION IN NIGERIA: PROBLEMS AND PROSPECTS

Abstract

The twin-problems of mismanagement and corruption encountered by the state-owned corporations constitute the impetus for the recent privatization and commercialization of those corporations in Nigeria. It goes on to reason that a decaying public sector would give rise to inefficient private sector. This paper examined the problems and Prospects of privatization and commercialization of public enterprises in Nigeria is the attempt to help the general public to know about the privatization and commercialization and how they have affected the development of the Nation. Although, some of the problems facing public- owned enterprise were examined as well. It looked at the pressure on the International Monetary Fund (IMF) to fully implement the structural adjustment program that leads to massive deregulation, privatization, and commercialization of public owned enterprises. In addition, it looked at the merits if any, of privatization and commercialization through extensive theoretical review of the performance of the private enterprise in Nigeria. Theories, rationale, and challenges of privatization and commercialization were addressed. The conclusion was that privatization is a good policy measure, which must be pursued with vigor, truth, sincerity, and transparencies even though the government is using such policies to foster a new division of labour between the public and private sectors in a bid to order, increase the efficiency and contribution to the development of both sectors. Privatization and commercialization in Nigeria will be a mirage unless institutional reforms take place. The government should create an environment favorable for private economic activity. This can be done by showing zero tolerance for corruption, nepotism, and misuse of public funds and property by both government and non-government officials.