PRIVATIZATION AS AN ALTERNATIVE DEVELOPMENT STRATEGY FOR NIGERIA 1986 – 2003

PRIVATIZATION AS AN ALTERNATIVE DEVELOPMENT STRATEGY FOR NIGERIA 1986 – 2003

Abstract:

This research work is aimed at determining whether privatization can be a good alternative development strategy for the country. The theoretical foundation of privatization is embodied in Kyenesian inability to solve the economic recession. This led to casting doubt on the ability of public enterprises to fulfill the propelled and enduring growth of the economy. Some of the problems of public enterprises in Nigeria include: poor human and materials management, lack of strategic management, poor debts management, etc. The Technical Committee on Privatization and Commercialization used various methods in privatizing the state owned enterprises. The methods include: public offer for sale of shares, through the Nigeria Stock Exchange, private placement and the sale of assets. These methods were evaluated in this study. Despite the upsurge literature on privatization, little empirical knowledge is available on the performance of privatized Companies. Can the privatized firms better than before privatization?. This thesis was carried out with broad objective of assessing and evaluating the challenges and the prospects of privatization exercise in Nigeria. Secondary data were obtained from BPEs Reports, TCPC Reports, First Bank of Nigeria Annual Reports, Journals and other sources. The difference of the two main means was used as the statistical tools to test the research hypothesis. The results shows that their has been significant improvement in the performance of the sampled companies after privatization then before privatization. This shows that privatization is a good alternative development strategy. The analysis of variance used in this study confirms the expectation that privatization enhance efficiency.

PRIVATIZATION AS AN ALTERNATIVE DEVELOPMENT STRATEGY FOR NIGERIA 1986 – 2003