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