Privatization and Sustainable Economic Growth in Nigeria: An Impact Analysis

Abstract

This study mainly interrogates how contemporary privatization packages have impacted on economic development in Nigeria. The Nigerian economy has grossly underperformed relative to her enormous resources. The major factors accounting for the relative decline of the country’s economic fortunes are easily identifiable as political instability, lack of focused and visionary leadership, economic mismanagement and corruption. The study uses a wide range of sources that are basically secondary in nature, including books, journal articles, theses, newspapers and magazines, workshops and government bulletins. Using a qualitative analytical approach, the study reviews the Nigerian economy, through policy regimes to the nature, structure and performance trends. The study argues that the focus of economic analysis of the classical economists was on conditions necessary for economic growth and development through an active private sector participation. Having examined some key economic variables, the study discovers that economic growth has risen substantially, with an annual average of 7.4 percent in the last decade. Unfortunately, economic growth under the privatization exercise has not resulted in the desired structural changes that would promote development, create employment and induce poverty alleviation. Similarly, there has been rising unemployment with current level put at 19.7 percent. Findings have also revealed that the corporate governance which privatization enforces has the propensity to subjugate the Nigerian economy to imperialist control. Based on these findings, the paper recommends diversifying the economy from oil and gas, funds realized from the sale of public entities should be reinvested in tangible public interest such as Health, Education, Agriculture and Water so that, the country’s economy can move from the historical sluggish growth trend to a vibrant growth path that can transform the structure of the economy and enable the country to attain the desired sustainable economic growth and development.