Since the arrival of the International Monetary Fund (IMF) at its shores via the great IMF debate of 1985, Nigerian leaders have learnt to demonise public enterprises, castigating them, facilitating their sales to cronies of government officials and using the channels of mass communication to impress upon the citizens that these enterprises are of no use. Today, the general wisdom is that the state should completely recede and that private ownership of the means of production is the only viable approach to efficient production of goods and services, economic growth and development. However, the same factors that led to the collapse of the public enterprises are also afflicting the privatisation exercise. In this paper, the practice of privatisation meant to promote private means of ownership and in turn increase the production capacity of every sector is critically examined. Focusing on the wave and sad experience of privatisation in a period of 2000-2012 which was riddled with corruption, nepotism, lack of good corporate governance and incompetent manpower in the country, the paper concludes that total privatisation of every sector will never solve the economic impasse of Nigeria.
Table of Contents
1. Introduction
2. Public Enterprises in Nigeria Before 1980s
3. Privatisation in Nigeria
4. Public Private Partnership: A Critical Assessment of Its Effectiveness in Nigeria
5. Conclusion and Summary
Research Objectives & Key Themes
This paper critically examines the efficacy of the privatisation process in Nigeria between 2000 and 2012, aiming to determine whether the policy has effectively promoted economic development or merely facilitated the looting of public assets by a privileged elite.
- The failure of privatisation to improve the operational efficiency of public enterprises.
- The prevalence of corruption, nepotism, and asset-stripping within the divestment process.
- A comparison of Nigeria’s privatisation strategy with successful global models of public sector management.
- The impact of Structural Adjustment Programmes (SAP) on the economic stability of the nation.
- The debate regarding the continued role of the state in providing essential utilities and public services.
Excerpt from the Book
Public Private Partnership: A Critical Assessment of Its Effectiveness in Nigeria
Privatisation is a phenomenon that is of a necessity associated with the theory of liberalism. What it entails is the transfer of management in terms of ownership and administration from the government to private financiers. The principle of privatisation has come to be embraced as a way of eliminating inefficiency in the public enterprises sector. The phenomenon gained worldwide support following the privatisation of British Telecom in 1984 under the Telecommunications Act. Several other privatisations took place in that country in rapid succession and other countries, particularly in Africa, soon went on board.
Nigeria was not left out of the agitation. Since the oil boom years in the 1970s, Nigeria has developed a large public sector, investing over100 billion dollars from that period to 2005 and getting as meager 0.5 percent annually as returns. Unfortunately, as the years rolled by, these establishments suffered recession. As a result of this, in 1988, the federal Military Government under a programme of privatisation and commercialization embarked on a major reform of its public enterprises. Therefore, the country started the privatisation journey 29 years ago when it enacted what was called the Privatisation and Commercialisation Act of 1988 which later set up the Technical Committee on Privatisation and Commercialisation (TCPC) chaired by Dr. Hamza Zayyad. By 1993, the TCPC concluded its assignment and submitted its final report.
Having based its decision on the recommendations of the Committee, the Federal Government of Nigeria promulgated the Bureau for Public Enterprises Act of 1993. The Act repealed the 1988 Act and set up the Bureau for Public Enterprises to implement the privatisation programme in the country. In 1999, the Federal Government enacted the Public Enterprises (Privatisation and Commercialisation) Act, which created the National Council on Privatisation (NCP).
Chapter Summaries
Introduction: Outlines the socio-economic context of Nigeria, highlighting the paradox of poverty in a resource-rich nation and questioning the efficacy of privatisation policies on the lives of ordinary citizens.
Public Enterprises in Nigeria Before 1980s: Explores the historical necessity of state-owned enterprises in the post-colonial era and their role in fostering development before the onset of the Structural Adjustment Programme.
Privatisation in Nigeria: Details the transition from state-led economic models to market-driven reforms, influenced by international financial institutions, and the subsequent implementation of the 1988 and 1999 Privatisation Acts.
Public Private Partnership: A Critical Assessment of Its Effectiveness in Nigeria: Provides a forensic examination of specific privatisation failures, including the Ajaokuta Steel Plant, Delta Steel Company, and NICON, revealing systemic corruption and asset-stripping.
Conclusion and Summary: Evaluates the overall failure of the Nigerian privatisation programme, suggesting that state-owned entities remain vital to economic development if managed with integrity rather than abandoned through fire sales.
Keywords
Privatisation, Corruption, Nigeria, Public Enterprises, Structural Adjustment, IMF, Economic Growth, Asset-stripping, Corporate Governance, Power Holding Company of Nigeria, Ajaokuta Steel Plant, Public-Private Partnership, Liberalism, Government Policy, Development.
Frequently Asked Questions
What is the core argument of this research paper?
The paper argues that the privatisation of public enterprises in Nigeria has largely failed to achieve its goals of efficiency and development, serving instead as a vehicle for the elite to loot public assets.
What are the primary thematic areas covered?
The study covers the history of Nigerian public enterprises, the impact of the IMF-led Structural Adjustment Programme, the prevalence of corruption in the divestment process, and the potential for a reformed public sector.
What is the central research question?
The paper explores whether privatisation is genuinely about meeting public needs or if it is merely a new avenue for the ruling elite to acquire wealth at the expense of national development.
Which scientific methods are employed in this analysis?
The author employs a critical analysis of historical government data, statistical reports, and documented probe reports from the Nigerian Senate to evaluate the outcomes of specific privatisation deals.
What does the main body focus on?
The main body examines the evolution of public sector policy from the 1980s to 2012, focusing specifically on failed transactions in the steel, insurance, and energy sectors.
How can this work be described in terms of keywords?
Key terms include Privatisation, Corruption, Nigeria, Public Enterprises, Structural Adjustment, and Economic Development.
Why does the author highlight the Ajaokuta Steel Plant?
The author uses the Ajaokuta Steel Plant as a prime example of a failed concession, where the facility was sold for a fraction of its value to parties lacking technical capacity, resulting in asset-stripping.
What conclusion does the author draw regarding future policies?
The author suggests that total privatisation is not a panacea and advocates for retaining key enterprises under government control while reforming their management practices to mirror successful global models.
- Quote paper
- Adewale Stephen (Author), 2014, From structural adjustment to privatisation in Nigeria, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/281784
