Privatization and National Development in Nigeria: a Case Study of Nigeria’s Power Sector
CHAPTER ONE
OBJECTIVES OF STUDY
Essentially, this research attempts to produce a theoretical explanation of the privatization policy in relation to Nigeria’s power sector and how it affects national development. The following research objectives shall be considered:
- To clearly define the relationship between privatization and the socio-economic well-being of the Nigerian society.
- To fully understand the major challenges on the part of the Nigerian power reform as well as define appropriate measures out of the dilemma.
- To ascertain the environmental cost implications of privatizing the energy sub-sector in relation to the Nigerian political economy.
- To examine the implications of the global dynamics of privatization, deregulation and di-vestment policies in Nigeria and Africa at large.
- To evaluate the efficacy and commitment of the present administration in her bid to probe public power funds that are being misappropriated by public officials in Nigeria.
- To examine the environmental impact of nuclear energy option in an attempt by the federal government to proffer lasting solution to epileptic power supply in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
Privatisation
McLean and McMillan (2003) posits that privatisation is the sale or contracting out of public assets to the private sector by the public sector. This, according to them, was the case in the United Kingdom, when the Thatcher government sold out industries in telecommunication, gas and electricity in 1979. According to Sharma, Sadana and Kaur (2012, p. 154), “privatisation is the transfer of ownership and management of country’s economic activities from public sector to private sector”. This implies that privatisation involves the private sector not only taking ownership of public sector organisations, but also being actively involved in its management and operations. They further view privatisation as a channel through which the public sector is reformed. Reformation here is drawn from the assumption that the public sector is grossly bedevilled by mismanagement, wastage of resources, excessive and unnecessary delays in completing projects, poor returns on investment, and general inability to maintain public organisations. This is further extended by Zahra, Ireland, Gutierrez and Hitt (2000, p. 511), in their definition of privatisation as “any action that transfers some or all of the ownership and/or control of state-owned enterprises to the private sector”. This brings to the fore, the various forms of privatisation. That is, complete transfer of ownership of public enterprises to private entities, part ownership of public enterprises, some level of control (partial or exclusive) of public enterprises by private individuals or organisations, which characterise the concept of privatisation. Wang and Liu (2017) opine that the need to attain coherence, flexibility and productivity, drives governments to adopt the privatisation strategies. They contend further that privatisation reforms, like outsourcing of public services, liquidation and outright sales of public enterprises to private individuals, have been adopted by governments in different countries of the world since the late 1970s. This is a recognition of the impact privatisation has on enterprises, by galvanizing performance. When there is presence of competition in the market environment (as privatisation is said to promote), the application of market mechanisms to put competitive pressure on service providers is perceived as spurring these service providers to not only lower their prices, but also improve the quality of public service they produce and deliver (Andrews and Entwistle, 2015). This enhances cost efficiency, quality of production and delivery and overall satisfaction of the end users – who are the citizens. This position is corroborated by Donald (2018) that privatisation is geared towards attracting foreign and local investments, job creation, bringing about competitiveness in local products, ensuring technological and skill transfer, as well as stimulating other sectors of the economy.
Development/National Development
The concept of development is all-encompassing and encapsulates wide sphere of issues and dimensions. There is difficulty in ascertaining what exactly makes for development, as it is relative. While a nation, for instance, may be identified as developed in one or more metrics, it may be found to be developing or underdeveloped in other parametres. The concept of development gained wide usage in the period just after the World War II when there was a need for reconstruction of war-torn Europe and this took the form of industrialisation (Rapley, 2007). Some scholars view development as economic growth, other see it from the viewpoint of the family structures, political and technological advancement, freedom from poverty and degradation, and so on (Szirmai, 2005). However, there exists various parameters for determining what is developed or otherwise. As a multi-dimensional process, it should be seen to include economic, social, political, and administrative development (Ibietan, 2014).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine privatization and national development in Nigeria: a case study of Nigeria power sector. Staffs of Ministry of power in Abuja form the population of the study.
SAMPLE SIZE DETERMINATION
A study sample is simply a systematic selected part of a population that infers its result on the population. In essence, it is that part of a whole that represents the whole and its members share characteristics in like similitude (Udoyen, 2019). In this study, the researcher adopted the convenient sampling method to determine the sample size.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
TEST OF HYPOTHESIS
H0: There is no relationship between national development and privatization of Nigeria’s power sector.
H01: There is a relationship between national development and privatization of Nigeria’s power sector
H2: Privatization of the power sector does not have the potential of enhancing efficiency of power supply in Nigeria
H2: Privatization of the power sector have the potential of enhancing efficiency of power supply in Nigeria
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain privatization and national development in Nigeria. A case study of power sector. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of privatization and national development in Nigeria.
Summary
This study was on privatization and national development in Nigeria. A case study of power sector. Six objectives were raised which included: To clearly define the relationship between privatization and the socio-economic well-being of the Nigerian society, to fully understand the major challenges on the part of the Nigerian power reform as well as define appropriate measures out of the dilemma, to ascertain the environmental cost implications of privatizing the energy sub-sector in relation to the Nigerian political economy, to examine the implications of the global dynamics of privatization, deregulation and di-vestment policies in Nigeria and Africa at large, to evaluate the efficacy and commitment of the present administration in her bid to probe public power funds that are being misappropriated by public officials in Nigeria and to examine the environmental impact of nuclear energy option in an attempt by the federal government to profer lasting solution to epileptic power supply in Nigeria.. The study adopted a survey research design and conveniently enrolled 80 participants in the study. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from ministry of power. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
From the discussions in this paper anchored on the submissions of a galaxy of scholars, it is discernable that there are ways by which the government can ensure privatisation is efficiently carried out, while also managing public–private partnerships: goals and objectives for such partnerships must be clearly identified and stated in binding codified laws and terms of operation. To corroborate, Abdullahi and Usman (2013) posit that the strategic plans by which the privatisation shall run for the parties involved must be developed; the procedure for privatisation and partnerships must be clear and transparent; there should be appropriate methods for assessing and evaluating the entire process; the right and appropriate structures for funding private sector participation must be put in place; there should also exist a system of government monitoring, supervision and regulation that would be very efficient; the management capacity of the private sector should be considered and strengthened; and very crucial of all is the measure that must be put in place to ensure there is job protection for all government employees in privatised enterprise.
Recommendation
There is a need for the Nigerian government to ensure that there is a favourable environment for privatised enterprises to thrive. This includes the provision of financial and credit facilities that can be easily accessed by the private sector to strengthen the provision of services to the citizens. Also, bureaucratic bottlenecks and undue redtapism that slows down processes of accessibility to government/stakeholders and approvals should be totally eliminated when relating with the privatised organisations. The usual policy somersaults and policy adjustments on agreements made with private sector investors in the privatisation process should be jettisoned, in order to make. This brings about distractions to the private sector operatives and hinders meaningful progress towards development. There is need for a continuous review of privatisation agreements with non-performing privatised enterprises. This will ensure that private sector operators live up to expectation mandate of effectively managing these enterprises for improved performance, with the ultimate goal of galvanising national development.
References
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