ABSTRACT
This
research work is focus on the impact of commercialization on development in
Nigeria; as a result of Ben in City electricity Distribution Company as a case
study. It has been observed that commercialization will help in developing the
country Nigeria. It is in recognition of this aforementioned fact that the
researcher decided to carry out this work to bring to limelight this obvious
fact. To accomplish this task stated above, the research works have been into
five (5) chapters. Which are systematically arranged.
Title page
Certification
Dedication
Acknowledgements
Abstract
Table of Contents
CHAPTER
ONE: INTRODUCTION
1.1 Background
of the Study
1.2 Statement
of the Research Problem
1.3 Objective
of the Study
1.4 Significance
of the Study
1.5 Scope
of the Study
1.6 Limitation
of the Study
1.7 Research
Hypothesis
1.8 Definitions
of Terms
CHAPTER
TWO: LITERATURE REVIEW
2.1 The
Concept of Commercialization
2.2 Process
of Commercialization
2.3 Types
of Commercialization
2.4 Why
Commercializing
2.5 Commercialization
and National Development in Nigeria
2.6 Benefits
of Commercialization
2.7 Summary
of the Chapter
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Research
Design
3.2 Population
of the Study
3.3 Sample
Size
3.4 Types
and Sources of Data Collection
3.5 Instrumentation
3.6 Method
of Data Collection/Analysis
CHAPTER FOUR:
PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Data
Presentation
4.2 Data
Analysis
4.3 Test
of Hypothesis
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings
5.2 Conclusions
5.3 Recommendations
Appendix
References
CHAPTER
ONE: INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The issue of
commercialization is an issue of universal diversion. It is topically, the
issue came into global focus during the regime of Margaret Thatcher of the
Great Britain, following her determination to rule back the public sector
substantially, so as to enhance the private sector in the effective and
efficient provision of public utilities and services, being regarded as safe
from denationalization. In Nigeria, commercialization appears to be the test in
the series of movement by the Nigeria and government to the ailing economy and
to give succor to the already paralyzed revamp government parastatals,
enterprises, industries etc. which could bring efficiency and effectiveness
that can ensure speedy and rapid development economy.
It started as a result
of the economic crisis that pervade and engulfed Nigeria, it is not just the
abdication of the agricultural sector of the economy that actually brought the
crisis in the economy, but the bad management of revenue accrued from oil,
foresight pervaded the scenario. The economic planners behave as if the oil
revenue will continue to flow forever and even maintain the same price level
which guarantee could continue spending and financing of the parastatals,
companies and industries at a regular or permanent basis by the Nigeria
government.
Notwithstanding, the
era of the oil boom further saw the ascendance of oil in the export list and
consequently, the dethronement of agricultural as a major source of foreign
exchange earnings. Scantly attention was paid to agriculture which was ipso
factor export oriented.
A good management of
economic resources could have utilized the oil money for devastation of export earnings
base and into other viable sector Instead councils, states and the federal
government embarked on expensive and gigantic programmes and projects whose
design and scope bore no relation and relevance to the factor on resources of
the economic. It would appear as long as funds were in abundance, waste in the
parastatals, enterprises and industries could be tolerated. No one was entitled
to complain and be transparent and honest in their dealings, based on that the
Nigeria economy becomes vulnerable and vagrant to fluctuations and
uncompetitive which made the economy to collapse.
Furthermore, with the
collapse and fall in oil prices government was unable to invest more as well as
meet the sustenance of the existing parastatals, enterprises, industries and
companies. The only option or policy left for government is to embark on
negotiation of internal loans to revamp the economy and to fund the
parastatals, enterprises, industries and companies.
Nigeria, had acquired
the IMF loans as an economy policy or measure to revamp the economic for which
Nigeria did apply. Two reasons according to Yerokun, June 1988 were given in
support of the application for the loan. Firstly the country’s economic
situation IMF loan was conceived as the inevitably.
Way or restoring the
economic to a healthier states. Secondly, the accumulated trades areas blocking
continues and trade access to credit for import finances. So Nigeria, applied
for Extended Fund Facility (EEF) a where years programme. The IMF loan is
usually subject to stringent conditions.
The conditions laid on
the table and argument must be reached by the official of IMF and country
concerned. The IMF official offered general proposal on several aspects of our
government expenditure with a view to reduce to aggregate capital spending. The
IMF offered and gave the following ties and precedent the main prop of
Structural Adjustment (SAP).
In the process N2.3
billion extended facility was given to Nigeria as died in the Vanguard of 2
August, 1999, is payable in three years, after three years moratorium, the
adoption and implementation was to the following conditionality’s. There are
the reductions in public expenditure particular in the sizes of the budget
deficit, introduction of greater budget disciplines, in review of on-going
project view to determining their priorities, reduction in grants subventions
to parastatals enterprises, industries, companies and classification of
activities for the purpose of restructuring them to active cost effectiveness,
accountability and economic profitability, stoppage of non y transfer to state
governments, simplication and rationalization of tariff, upward review of
interest on fertilizers, rigorous export drive the export base, review of
industries, incentives and policy the abolition of the approved usher scheme,
adjustment provident, prices of agricultural commodities, strict external debt
control and management improvement in the operational efficiency of revenue
collection agencies such as the department of custom on and excise and in land
revenue, trade liberalization, removal of petroleum subsidy and the valuation
of exchange of the naira). And with acceptance for mentioned conditionality,
the Nigeria economy according to the Tell magazme 3rd 1998 March issue
extricates that, the economy did not show any sign recovery dud. to bad
implementation occasioned by selfish interest, clienteles. Prebendalism,
personal aggrandizement and corruption by those at the apex. This further slide
the economic disequilibria, the Structural adjustment Programme was therefore,
introduced on the 27 June 1996 by president Babangida in a nationwide
broadcast.
In sum, the policy of
the Structural Adjustment was able to crave wide opportunities and boast the
economy to a stipulated period but due to the Nigeria factor things went
topsy-turvy for the economy again. The parastatals, enterprises, industries and
companies started going down the draub. For instance, the look and scheme of
things to survive due to pretence. The Nigeria Airways, Nigeria shipping line,
National Railway Corporation etc are crying and begging for a lifetime due to
economic strangulation. And with these public invent looking incapacitated base
on lack of efficiency and effectiveness as well as the divergent economic
policies and, blue prints adopted to see their enlistment have so far prove
abortive as a result of different reasons.
Finally, the call for
privatization have reach and gained impetus from the liquidity problem faced by
the economy and government, therefore, privatization appears to be both an
opportunity and challenge to revamp the economy and induce efficiency and
effectiveness in the public corporation and companies to enhance
diversification, competition and development in Nigeria. Thus, this research
work will thoroughly examined the issue of privatization as they relate to
national development.
1.2 STATEMENT OF THE RESEARCH PROBLEMS
The proposed
commercialization of ailing parastatals, industries, companies, and enterprises
is by all means and important national issue, understandable, it has generated
a lot of relations from different sections of the Nigeria society due to the
socio-economic life to the Nigerian citizenry. Some years back, a lot of
Nigerians were enthusiastic about the prospect of privatization. Their skepticism
was premised on the fact, that these BEDC etc are charged with the
responsibility to provide services that are quite strategic to the Nigeria
economy and so, caution should be taken against the transfer of such
institution to commercial, local and foreign investors. This group of people
believed that leaving such importance institutions in the control of commercial
investor will mean putting a lot of Nigerians at the mercy of such investors.
Another reason why a
lot of Nigeria expressed reservations about the commercialization scheme is the
notorious ‘Nigeria factor” the feeling then was privatization was another way
of transferring public wealth into the hands of the few strong and powerful
ones in the society. The fear of corruption and lack of transparency in the
whole exercise was quite real, and fear of corruption as at that time. But that
was then, today or presently. Nigeria are craning to accept that there is no
alternative to privatization.
Active players in the
nation’s economy having long been advocating major restructuring in the
domestic corporate market and public sector via effective commercialization.
Perhaps, the abyssal state of our prostates enterprises, industries and
companies has forced the government and the people to finally face reality.
Hence, the question on every bodies lips now whether or not to commercializes,
but which is the best way to go about.
·
Is it the policy on commercialization
going to meet its aspiration or goals in Nigeria?
·
Is it true that commercialization has
been accepted and gradually being implemented?
·
Is the objective of commercialization
going to hasten national development In Nigeria?
·
Why is the government commercializing
public corporation?
1.3 OBJECTIVE OF THE STUDY
The objective of this
research work will determine to a large extent if commercialization has improve
our economy as well as all existing government corporations.
·
The impact of commercialization on
national development. Will boost a partisan in the economy.
·
To give a through view about the social
political impact of commercialization on the Nigeria policy.
·
The objective would hasten national
development than when left in Government Corporation.
1.4 SIGNIFICANCE OF THE STUDY
The significance of
this research work will probe into the various critical view of experts on
commercialization and its negative effects on the economy as well as public
unities.
Another significance of
the study of this research work will also serves as a research on
commercialization and its congregational economy, parastatals, industries
companies and to the national development of Nigeria.
1.5 SCOPE OF THE STUDY
Due to the wide intents
of the policy of commercialization, this research work will be scoped to
government owned companies, parastatals, enterprises and industries affected by
the policy the time under view. The choice of the aforementioned areas as
specified, is based on a careful examination and explanation of the work that
commercialization will do in those areas.
1.6 LIMITATION OF THE STUDY
My efforts to carry out
this research work, I had several limitations in be areas of finance which has
been a limitation in the economy, also is the source materials which almost
scantly the take off of this research work.
Time was also a limitation as the period
covers the starts was hurting to the abridged semester. The research work, had
to be done in a wry. But I thank God divine favour so fair, for the
facilitation of this project work.
1.7 RESEARCH HYPOTHESIS
The research would have
covered many areas, but due to difficulties encountered in collection of data,
the analysis have been streamlined to the town under consideration is Abraka.
Hypothesis is a
tentative statement which could be proved right or ugh statistical testing.
However, hypothesis can be divided into two, namely; null (Ho) and Alternative
Hypothesis (Hi). While, for the purpose of the researcher would be stating the
hypothesis, thus:
Ho:
Commercialization and national
development has not helped in the
Nigeria economy.
Nigeria economy.
Hi:
Commercialization and national
development has help in the economy
Nigeria.
Nigeria.
1.8 DEFINITION OF TERMS
This of this study work
will give a proper understanding from the standpoint view the term
commercialization and National development.
Commercialization
According to pare
commercialization is a move by the public sector towards the pursuit of
efficient and effectiveness in the attainment of its objective of financial
consideration.
In its narrowest sense,
commercialization is the permanent transfer of operational control of an
enterprise, from a public agency to one or more commercial parties.
National
Development
National development
according to Ajayi 1977 means the modernizations and moderations is only a
liberalizes version of westernization which enable a developing country to see
inspiration not only from Europe and America but also from the westernized part
of the far
Poor
Management
Poor management result
to the inability of the organization to meet up the standard set and unable to accomplish the
organization goals.
Nigeria
Economy
This means the control
and management of money, goods and other resources of the community, society or
household in Nigeria.
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