Privatization and Commercialization Programme in Nigeria: Issues and Challenges

Abstract

Privatization and commercialization of public enterprises (PEs) in Nigeria was adopted as solution to the poor performance of the establishments in spite of the huge sums of money pumped into them by successive governments. However, the performance of the privatized enterprises is not in any way better than their former self. This paper evaluates the issues and challenges facing the privatization and commercialization programme in Nigeria. Data for the study were obtained from secondary sources – relevant books and journals. Quantitative approach through content analysis was employed for the study. The Laissez-Faire Economic Theory and Public Choice Theory were adopted as the framework that guides the paper. The study revealed that the privatization and commercialization exercise in Nigeria is faced with problems which include: lack of transparency, corruption, loss of jobs, limited number of beneficiaries, rise in prices of goods and costs of services, inadequate regulatory framework and lack of technical know-how among others. Based on the findings, the study recommended that government should ensure that administrative transparency is well instituted, appropriate measures to check corruption should be put in place, the privatization agency should consult with major stakeholders to avert job losses in privatized enterprises and regular review of the activities of the privatization agency should be carried out by a team of experts.