A RETROSPECTIVE EVALUATION OF THE PRIVATIZATION AND COMMERCIALISATION POLICY IN NIGERIA

Abstract

Privatization and Commercialization of Public enterprises are twin socio-economic concepts ascribed with the potentials of rescuing ailing economies, especially of the developing countries, from economic malaise. Whilst privatization is geared towards transferring public enterprises, assets and infrastructure to private hands for better-efficiency, management and productivity, commercialization on the other hand is aimed at making such public enterprises more profit oriented and less burdensome on government. Nigeria embraced these twin concepts from the late 80s leading to the privatization and/or commercialization of such hitherto state owned monopolies in the telecommunications, electricity, petroleum, banking, Air transport, manufacturing, hospitality and other key sectors of the economy. However, whether the major objectives of this exercise were realized has remained a moot point. This paper therefore examined the legal framework that was put in place as well as the key features of the twin policies in retrospect. It found that although the set goals of the Privatization and Commercialization policy are quite attractive, the legal framework for as well as the actual implementation of the policy in Nigeria have not achieved the desired results. It also found that the current regime poses a serious threat to the economic well-being of the citizens and the economic sovereignty of the country. It therefore recommended that the whole regime of Privatization and Commercialization be reviewed so as to ensure, inter alia, better efficiency and productivity of key enterprises, affordability of services, creation of employment and overall economic development of Nigeria.