The Effect of Commercialization and Privatization on the Nigeria Economy With a Case Study of Uba Plc
CHAPTER ONE
Objective of the Study
There are some certain aims and objectives for which the researcher embarked on this work such as:
(1) To ascertain if political interference and mismanagement of resources is responsible for poor performance of public enterprises.
(2) To ascertain if privatization and commercialization could enhance performance of public enterprises.
(3) To discover if the privatization and commercialization of public enterprises has improved the efficiency of service delivery.
CHAPTER TWO
LITERATURE REVIEW
REVIEW OF RELATED LITERATURE
There are various kinds of opinions of many scholars. On the activities of privatization and commercialization of government owned industries. The federal government has restated its commitment to the privatization programme, saying that it would not allow obstacles to make it change its focus.
UKWU [1982] said that the perennial problem of public enterprises arise from the composition of the board and their relationship with the management. In particular, the conflict between the chairman and the chief Executive himself usually, direct appointees are appointed for reasons of political patronage rather than any contributions they are capable of making to enhance performance.
Abba (2008) argued that some public enterprise, whose establishment are hinged on regulatory philosophy have also not lived up to standard. Due to endemic corruption in these
enterprises, officials collect bribes and truncate their primary reasons for establishment.
But in the words of Chief Olusegun Obasanjo (1999) in his assessment of the decline in Nigerian government owned industries asserts that these industries that these suffer from fundamental problems of detective capital structure ,excessive bureaucratic control or interception, inappropriate technology, gross incompetence and mismanagement, blatant corruption and crippling complacency which monopoly engenders.
Excessive ministerial control and political interference according to Ogunna (1999) defect the primary objective of living-off government owned industries and public corruption and therefore, are anti-theatrical to effective performance.
RYNDIMA et al[1980] dealing on the political economy of surplus augured that for there to be increase in productivity or output commonly known as „‟Surplus Value‟‟, there will be intensified exploitation of the workers in the public corporations. These measures can measure up; there are other ways of getting
their desired objective, example by spreading up work [production] overtime and underpayment of workers.
In the words of Ogunna [1999] the poor performance of government owned industries in, Nigeria can be approached from the perspective of inadequate financial and material resources; poor management, corruption and lack of continuity of public corporation boards.
Ollor[1986] was in support, when he said that giving the economic recovery objective of the government „privatization‟ will relieve the financial burden of government and release fund for it to use in other areas.
CHAPTER THREE
RESEARCH METHODLOGY
RESEARCH DESIGN
Research method has to do with the methods adopted by the researcher to collect data which are relevant to the problem under consideration. The researcher used survey study method in the course of this research.
SOURCE OF DATA
The data to be used for the study will be collected through two main sources which are
[1] Primary source
[2] Secondary source
PRIMARY SOURCE OF DATA
Specified (2000) defined it as the data collected on first hand information from the original source for the users express purpose. Such data are usually obtained from the field through interviews,
questionnaires; survey planned experimental observation or recording of official transaction. The questionnaire was designed and distributed to respondents and later collected and analyzed by the researcher.
SECONDARY SOURCE OF DATA
The secondary source of data is obtained from the review of related literature. In other words, the researcher consulted published and unpublished books, journals, newspapers, magazines, official documents(that is government and non-government organization official documents with relevant data), the researcher made use of Caritas University library, lecture note book to mention but a few
LOCATION OF THE STUDY
Osondu (2004) said that, the area of the study refers to the geographical location covered by the researcher. The researcher focused her mind and interest on the study of the UBA PLC), Enugu as a case study concerning herself with the effect of Privatization and commercialization of government owned industries. The case study is located in urban area.
POPULATION OF THE STUDY
For any researcher to collect information for a given research work, the researcher must specify the entire group that should embrace the information (Nworgu, 1991).Research population according to Osuala (2000) refers to the whole object from which the sample is drawn. Silverthorne, Fisher and Fort [1980] defined population as the totality of any group, person or project which is defined by some unique attribute. The population of the study which are the writers in the Nigerian telecommunications limited (UBA PLC). Enugu is two hundred (200) workers, both senior and junior staff.
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter deals with the presentation of data collected in the course of the study with a view of making valuable recommendations and conclusions.
In analyzing the data collected, tables were used in the presentation of data. The simple statistical method of frequencies and percentages were applied. The research questions were also analyzed.
Table 4.1.1 shows that 56 respondents were of the view that government embarked on privatization in order to generate profit, while 42 respondents were of the view that government embarked on it in order to enhance efficiency in service delivery. The other 35 respondents were of the view that government embarked on it to create employment opportunities.
Therefore, we can say that government embarked on privatization and commercialization to generate profit.
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENTATION AND CONCLUSION.
In this chapter, the researcher presents the summary of her findings based on the analysis of the data collected. As a result of findings recommendations are made which invariably leads to the conclusion.
FINDINGS
The researcher, after a thorough analysis of data gathered, found out as follows.
- That the Nigerian government embarks on privatization and commercialization to generate profit.
- That UBA PLC was making more profit through privatization and commercialization more job opportunities have been created.
- That privatization has a positive impact on the economy.
- That, the working conditions of staff of UBA PLC have improved.
- That the output of UBA PLC improved since commercialization took place.
- That the masses were now satisfied with the service of UBA PLC.
- That, there are many problems militating against privatization and commercialization which includes corruption, lack of fund, inadequate skilled manpower, recruitment by patronage etc.
- That government interference affects the effective functioning of UBA PLC.
- That recruitment by patronage can be reduced by privatizing and commercializing UBA PLC.
RECOMMENDATIONS
Based on the findings, the following recommendations have been made knowing fully well that, as privatization is in the hands of few individuals, government should ensure that before granting the license, they should examine and select the competent people who will handle the private enterprises and not people of questionable character.
That partial commercialization and privatization should be adopted in government enterprises that are involved in providing strategic service like maintenance of peace and other security and vital documents, economic regulation etc. should not be privatized. This is because of the nature of their services/products, but should be restricted and reorganized in order to make them more efficient.
In order to put a stop to the problems militating against government industries, corruption should stop among them, government should not interfere in the affairs of UBA PLC, capable hands should be employed to manage the UBA PLC, and also recruitment by merit should be applied.
CONCLUSIONS
In conclusion, privatization has been seen as a means to get government interested in fostering a new division of labour between the public and private sectors in order to increase the effectiveness and contribution to development of both sectors. Therefore, the success of privatization should be judged not in terms of the sale, the price paid to government or expansion of enterprise sold but rather, on the basis of wealth.
It is very clear that we cannot exclude economic from politics and it is well known that the basic problem facing public enterprises in Nigeria is control or management. This can be addressed through privatization in order to reduce expenditure and encourage economic recovery.
From the respondents, submission, the researcher concluded that excessive political interference in the operational matters of public sector creates negative impacts and obstacles to the operation of UBA PLC Enugu.
As the federal government of Nigeria (FGN) 1993 also currently observed, the primary agreement for privatization and commercialization is of course that the efficiency and profitability of the investment will improve after the exercise.
Finally, it is the work of government to restructure the economy of the country and harness the political and economic power. These exercises bring about competition from various commercialized and
privatized enterprises in Nigeria including UBA PLC, Enugu. Also, since these private enterprises have performed efficiently and effectively provision of electricity has been cheap and easy, job opportunities created, all adding to economic development.
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