CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In the era of post-colonialism, Nigeria has at one time or another, embarked upon certain policies that have political-economic implications. For instance, from 1960 to date, Nigeria has introduced indigenization and nationalization policy, operation feed the Nation (OFN), Austerity measure, structural adjustment program (SAP), Deregulation of the oil sector, Resource control Privatization and commercialization of public enterprises to mention but a few. The critical the question here remains. How many of these policies have been able to restructure the political economy of Nigeria to the tune of alleviating the yearnings and aspirations of the working class.

The world no doubt is moving towards capitalization and any nation that is not moving towards this direction is seen as either not developing or even retrogressing. A capitalist economy is a free market economy that allows most economic decisions to be guided by the twin forces of demand and supply. Since capitalization discourages monopoly but encourages a competitive market, it therefore enhances efficiency and high productivity which is very vital in any developing country’s economy. In Nigeria, most government-owned industries and establishments remain citadels of corruption, studies inefficiency and consequently a heavy drain on the economy. As a means of curbing this menace, the Bretton woods institutions (IMF & WORLD BANK) have advocated the twin policies of privatization and commercialization. Incidentally, Nigeria has fully adopted this policy and is embarking on it with frenzy

1.2 STATEMENT OF PROBLEMS

Privatization and commercialization of public enterprises is a vital tool for the upliftment of a country’s political economy, more especially the developing countries like Nigeria. Regrettably, the problems facing this privatization and commercialization program is numerous to include:

a. Corruption

b. Lack of transparency

c. Lack of accountability

d. Inconsistency and

e. Incredibility.

However, it is based on these problems that the basic propositions of this privatization and commercialization programs are being hindered. In trying to look into these discrepancies and proffer a way forward towards a positive state of privatization and commercialization of public enterprises in Nigeria, this research work emanated.

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