The interest of this study is to destroy valuable contributions to
companies management and general industrial development in Nigeriathrough
privatization and commercialization Nigeria has been lacking behind in terms of
development owning to numerous reasons some of which are embedded in the
management of her local producers system. In this study therefore, the
interesting is to carryout some research into these problem that impede company
management process in Nigeria and suggest ways and means of moving them through
modern management process and in addition X-ray the far reaching benefit that
could be drawn from privatilization and commerclizatin on company management.
the dilemma of external indebtedness and internal economic stabilization
The major component of this medication is the gradual dismantling
of state control. How the management of companies affected by privatization
going to fare, because the crux of this study. Some selected government
enterprises operating within the continues or bead quarter in the state were
studied to give the research an empirical touch. In conclusion few question
which may be agitating the minds of people were answers. Among these question
government intervened in economics activates an did why is it urgent now that
state control has be dismounted for private initiations to come in?
A note of
wanting was sounded about seeing privatization as a solution to all management
and economics ills and that the right remedy should be given to the appropriate
private ailment at the right time.
1.1 General background to the subject matter
assouated with the subject matter
that search will contend with
of the studying area.
of important terms
2.0 Literature Review
2.1 The origin of the subject matter
2.2 School of thought with the study area.
2.3 The school of thought relevance to the problem
of the search .
2.4 Different method of the studying the problem
3.1 Data presentation
3.2 Analysis of the data
It has been exonerated that the economic situation of Nigeria from
the recent past to p
resent is anything but good. Datas back to the colonial ear,
Nigerians economy has been saddled with planlessness and bad administration.
Other countries like Taiwan, south Korea and even south African that started
from the same platform as Nigerian in quest of economic emancipation have today
made considerable achievement.
Nigeria, she was held down to low economic attainment by a vicious circle of
force, tribalism, nepotism, political profiteering, poor education orientation
and poor work altitude. This circle however, was often broken by seeing
economic progress as in the area of grandaunt pyramids of the sixties and the
oil boom era of the seventies which bid not stand the test of time.
Nigeria have been conscious of dividing economic fortunes and
proclamation of such measures as how profit image operation feed the
Nation,(OFN), Austerity measures war against indiscipline program (SAP) of the
Ibrabim Babamosi Babangida administration (1965-93) . SAP has one of its
children as privatization and commercialization.
All the above measures were geared towards economic stabilization.
The extent of success of each depends upon the straight of will and
purpose of their proporients.
memory came, Nigeria was one known for her groundnut pyramids . In the 1970-84,
groundnut production had gone down considerable from what it used to be
in the sixties when Nigeria was the world trading exporter of groundnuts, by
1984, Nigeria has become a net importer of groundnut oil, cocoa, beans and
cotton to mentioned but a few and so was importing more than it was exporting.
With the outbreak of Middle East war in 1973, oil prices rose to an
unprecedented level and Nigeria becomes the most industrialized in the
Unfortunately she made no contingencies and could not utilize her
sudden found wealth. Nigeria abused her ability to import and this depleted her
enternal reserve to the barest minimum Nigeria was no longer in a position to
pay for her imports through exchange earning, she began to accept short credits
which ironically graduated to long term embarrassing debts.
the countries long term projects she sought for and contracted to assist in the
wan syndication and for which a significant amount from the loan was paid out
as management fees, legal fees, placement fees and so on.
most of the school term loan Nigeria borrowed to financial projects with long
term returns began to mature by 1983, there was a backlog of matured debts and Nigeria
was harrssed from pillar to post by creditors. She was advised to borrow from
IMF. Given their considitionalities, but Nigeria refused because of us far
reading Implication on the economy.
government rather Rose to impose economic measures with the aim of restricting
the economic, making the productive sector more completive and reallocating
resource for more efficient uses. However, because of the lack of political
will, the measure were not pursued vigorously until the military came win 1984
with a view of ensuring a turn around from economic independence and
depression. This economic down turn was accompanying by austerity. In this
case, the problem was not solved as there was a persistent decoration of the
balance of payment , external debt problem, capital flight and further
devaluation of the Niara. To correct some of these anomalities and Immune, the
economy future shocks. The military government reacted promptly and mapped out
the economic recovery package –SAP to improve resources, allocation increase
Privatization and selective commercialization therefore forms one
of the measures for implementation and realization of the objective of SAP.
1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
The study on the effect of privatization and commercialization on
company management is commercialization on company management is organized
under three chapters.
The first chapter introduces the topic of the study, give the
background of the subject matter, problem associated with the subject matter,
problem that search will contend with , important of studying the area,
definition of important terms, then reference.
chapter reviews literature which has been written on the subject matter in the
past presentation analysis the data, and makes recommendation, which brought
1.2 PROBLEM ASSOCIATED WITH THE SUBJECT MATTER
The aim of these studying are: To investigate the effect of the
initiated process of gradual succession of public sector enterprises by the
private sector on such enterprises that by the nature of their operation and
other socio-economic factor are best performed by the private sector.
To evaluate the recommended solution to the problem of absolute
dependence of commercially oriented perastatals on the treasury for funding and
to encourage their approach to the capital market.
To find out
ways of ensuring positive returns on public sector investment in commercialized
enterprises and re-orientating the enterprises for privatization and
commercialization towards a new horizon of performance improvement, viability
and overall efficiency.
Lastly, to provide institutional arrangements and operational
guideline that would ensure that the gains of privatization and commercialization
are sustained in the further.
THAT SEARCH WILL CONTEND WITH
Privatization and commercialization of public enterprise like wind
is blowing across the world, dismantling old structures and ideas and creating
new foundation in political economy.
The world privatization was corned to desirable the process of
moving from the public to the business. It involves the sale of formerly
public enterprises to private individuals and groups. Privatization can also be
partial (government still retaing some shares in the business) or total
ownership is transferred to the private person who have paid an agreed amount
to the government.
privatization and commercialization of 1988 and baren of public enterprise act
of 1993, defined privatization as the relinquishment of part or all of the
equity and interest held by the federal government or any of us agencies in
enterprise weather whorlly or partly owned by the federal government.
N0 25 of 1988 defines commercialization. As the organization of enterprise
wholly or partly owned by the federal government in which such
commercialization enterprises shall operate as profit making commercial venture
and without receiving money from federal government.
Privatization and commercialization no doubt aim at achieving some objectives.
These objectives are lack of well seasoned management and wastage of resource
rather than profit making becomes the force during the public enterprise into
objective is to find out the effect of the exercise on management of affected
comprises. To achieve this, the following question, need to be answered:
do we go about not about getting the best from privatization but also
controlling it to yield expected output?
categories of public enterprise should be practiced should the viable ones be
private individuals and initiatives be able to provide goods services
efficiently and at minimal cost, that is will denationalization bring about
efficient and reduced cost of production?.
1.4 IMPORTANT OF STUDING THE AREA
Seeing the increase in the chromching role played by
the public sector in provision of goods and services, affects the entire
economy there arise the need to restructure the economy, because of
drastic reduction in revenue accruable to the government.
government has to re-consider and re-direct its scarce resources into more
socially beneficial and economically productive venture rather than
engaging in pure economic activity which the private sector would handle better.
The study will examine if privatization could be a remedy for all
billing public sector, it will also examine the most efficient way in which
privatization policy will re-applied so that the best will be extracted from it
also become exigent, as it is a pre-requisite for the award of higher National
Diploma in Business administration and Management and technology .
1.5.1 For the sake of Charity, thus study will give
operational definition of some variable in the topic
relinquishment of part or all the equity and interest held by the federal
government or its agenesis enterprise whether wholly or partly owned by the
federal government to the private sector.
re-organization of enterprise wholly or partly owned by the federal
government in which commercialized enterprises shall operate as profit
making commercial venture and without subvention from the federal government .
joint stock or limited liability company which is legal entity setup for the
purpose of conducting commercial or industry operation and with a capital which
is divided into shares that are held by its member
causes, produce or have a result.
administration and policy makers of business or other organization in a
corporation .it is the board of directors elected by share holders and the
officers of the cooperation appointed by the board of directors.
TERMS AND CONDITIONS APPLY
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