CHAPTER ONE

1.1   INTRODUCTION

        Recently, the mismanagement of our parastatals has been a subject of debate. The inefficient utilization of resources and financial mismanagement of most of public sector enterprises over the years resulted into a very weak economic balance sheet, excessive debts incurring and in most cases negative network.

        In addition, the fact that the insolent performance of the state in administration of public business establishment creates a situation in which national funds that could have been used or spent to generate new economic activities and employment opportunities are being used to subsidize “dead wood that will never grow nor change” as analogy for the public enterprises.

        Taking survey of the phenomenon of privatization and commercialization has also been extend to garbage collection, bore-hole drilling, air traffic control and likes many other countries like Britain, USA, Spain, Italy are also involved in various degrees in the process of privatization and commercialization and this is not so exceptional case with Nigeria.

        Privatization and commercialization is seen to many observes as a situation to our economic predicament. The debate in privatization has been on the presumed efficiency of the private sector vis-à-vis the public enterprises and how the latter can be made more responsive to market forces and signs. It has been realized that inefficient companies are typical drain on national treasures and that they contribute greatly to the enormous current debt problems.

        Thus, if efficiency can be elevated in relating to profitability cost saving and consumer satisfaction and the liks. Do we consider privatization and commercialization to be the solution and to what proportion should factors of production and distribution be held by the state private individuals.

        As government could no longer continue to support the monumental waste and inefficient of these public enterprises, the programme of privatization and commercialization was developed to address our peculiar socio-economic and political condition.

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