PRIVATIZATION OF GOVERNMENT PARASTATALS AS A PANACEA TO ECONOMIC GROWTH IN NIGERIA

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1.0. Introduction

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1.1. Background of the Study

Government establishment from the inception was meant to give its service to Nigerians at subsidized rate with the impact of our oil revenue. Priviatilization was very low because of the developing nature of our economy.

In recent time, the mismanagement of government parastatals has been a subject of debate. This is unconnected with the level of corruption practices which has presented in to the veins of wide range of Nigerian populaces. Lack of full utilization of resources, financial and administrative mismanagement of most public sectors over the year has resulted into weak and stagnant economy. Capital flight excessive debts incurring and under development.

The indolent performance of the state in the administration of the public business establishment create a situation in which national funds that could have been used or better spent to generate new economic activities and employment opportunities are being ibid to subsidize dead wood that will never grow or change as analogy for the public enterprise it is against background of re-organizing and making that the government of general Ibrahim Babangida in his budget speech in 1986. categorically declared to pursue a policy of privitilization of government parastatals since the introduction of SAP (Structure Adjustment Programme in 1986 The debate on the issue of priviatilsation has gradually assumed the common with all controversies the emotions generated the controversy of tent overshadows the issue s itself.

More so, president Olusegun Obasanjo in one of his broad made it clear to Nigerians the essence of privatilization in this government, which will bring development in all ramifications, privatization is mostly defined as the “ Transfer of government owned industries to public sector implying that the predominate share in ownership of assets in transfer lies will private shareholders”.

Taking a survey of privitalization it will discover that it is not a new subject in the economics literature since the end of the end world war, rapid indeed specula development in technology especially in the fields of communication and information management has facilitated increasing contact and interaction amongst people of the world. Technology has also helped to unlock an unprecedented capacity for the creation of wealth and has prompted massive increase on trade between nations.

Commercialization information and trade have facilitated the rapid breaking down of all great barriers, ideology came crushing down the collapse of the solvent union and the system of centrally planning economy that has promoted and championed scene the Russia Revolution of 1918. also after the second world war, Britain embarked on deliberate policy of nationalization of its basic industries with a view to enhancing efficient planning of British economy and to ensure an uninterrupted flow of essential services and goods to the venerability of the populace but the transfer of fourteen (14) large companies and many smaller ones employing a total of absolute 6,000,000 people from public to private hands over the first eight year. British is today a leader in the course of priviatilization of public enterprises with over 90% of the economy in the privatization in the same vein is the united State of America (USA), which seems to be the most privatized economy in the world.

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1.2 Statement of the Problems

The role of government enterprises in the economic development of modern nation cannot be ignored. The unique historical condition of the development of modern nation cannot be ignored. The unique historical condition of the developing countries had urged government participation or extensive intervention in most sector of economy a vital necessary.

In the capitalist economy parastatals came in being as part of the general economics policy to correct market failure. The market may lead to no-optical resources allocation for several reasons for instance private and social rationality may diverge externalities and indivisibility may the weak or there may be which has called a “Defective telescope faculty” in the part of private enterprise. Regarding this background the consideration involved in the establishment of state parastatals may be ground under two bases.

Firstly, there is problem of subjective criteria in appointment of exetecutives and principal functionaries of parastatals were appointed not because of their proven integrity and capacity to deliver goods and service but their appointment had been made for the reason of nepotism dressed up in disguise of federal character. This makes sense accountability to be of no space with executive and the result is always that the managers of parastatals becomes complacent n and interest.

Secondly, these is the problem of over supervision by supervising ministries. The irritability of government owned establishment could improve their performance.

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1.3 Objectives of the Study

The overall study objective is to formulate a broad planning and development framework setting out guidelines an standards for more effective and comprehensive planning for pedestrian at different levels of planning, based on which conceptual pedestrian plans would be prepared for application and assessment of broad impacts and implementation mechanism of the pedestrian planning proposal.

The study aims to promote pedestrian in the plan making and development process and establish the prima facie feasibility of the pedestrian planning proposals to achieve the following objectives.

1. Reinforcement to pedestrian linkage between major pedestrian activity nodes.
2. Integration with the land use, Urban design, transport, tourism, heritage conversation and environmental framework or more efficient use of pedestrian activity space and circulation.
3. Creation of a clean, safe, convenient comfortable pedestrian friendly and pleasant environment not only for the pedestrians movement but as a place attraction for capture their stay.
4. Introducing or increasing the social, economic and cultural vibrancy and vitality for the pedestrian area and their surroundings.

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1.4 Research Questions

• Can privatization be the government last resort towards efficiency?
• Can privatization increase the cost of living of the people?
• Would privatization improve the service of government parastatals?

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1.5 Significance of the Study

Without a study of this kind, government will not know the various problems of parastatals and privatization as a means of solving the economic problems in the country.

Thus the relevance of the study is to identify the problems of parastatals and provide solutions and then set out strategies for repositioning parastatals towards economic development of Nigeria.

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1.6 Scope of the Study

Since it is the aim of this project to bring out details of the various problems of parastatals and suggesting privatilation as a means of means of solving these economics problems, the scope will cover the following area considered relevant to the subject matter.

1. An examination of how some or types of parastatals are formed.
2. Considering the various problems charactering these parastals.
3. Interviewing and making analysis on the company to be privatized.
4. Framing the protest and various problems of parastatals and other relevance to the project.
5. Commenting on the decree 25 enacted for the implementation of privatization.
6. Suggests of strategies for successful implementation of privatization.
7. List of companies to be fully or partially privatized.

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1.7 Limitation of the Study

The research work is limited to national electric power authority (NEPA) Enugu. This study is limited based on the fact that there is no time and materials resources to see to the whole nation. The research found it very difficult to combine both the class work lecturers, assignments, quiz and term paper with the research study for that is not possible for the researcher to interview every staff of NEPA. Rather the researcher did a convience sampling with which the interviewed some of the staff of NEPA.

Money is also a serious implement. This is a result of metro trips that has been embraced upon for the purpose of the work. Another constraints is the purpose of the work. Another constraints is the inability of the parastatals that is NEPA to provide relevant materials which are o important for this project and some of the materials are needed are not readily available.

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1.8 Definition of Terms

The following are defined in relation to the above topic.

Privatization:

This is the sale of formerly public enterprise to private individual and groups.

Efficiency:

This is the state and quality of being efficient.

Bureaucracy:

This state of legal power and authority result with the institution not with the individual workers.

Productivity:

This is the ability to produce.

Panacea:

Remedy for all troubles.