TABLE OF CONTENTS
Cover page i
Table of contents viii
1.1 Background to the study 1
1.2 Statement of the problems 4
1.3 Research questions 5
1.4 Purpose of the study 5
1.5 Significance of the study 6
1.6 Scope of the study 6
1.7 Limitations of the study 6
1.8 Definition of terms 7
1.9 Organization of the study 8
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Literature Review 10
2.2 Theoretical Framework 21
RESEARCH DESIGN AND METHODOLOGY
3.1 Research 23
3.2 Area of the study 23
3.3 Population of the study 23
3.4 Sample and sampling techniques 24
3.5 Method of data collection 25
3.6 Instrument for data collection 26
3.7 Reliability of the instrument 26
3.8 Validity of the instrument 26
3.9 Distribution and retrieval of the instrument 27
3.8 Method of data analysis 27
DATA PRESENTATION AND ANALYSIS
4.1 Data presentation 28
4.2 Analysis of research questions 28
4.3 Interpretation of Results 35
SUMMARY, CONCLUTION ANDRECOMMENDATIONS
5.1 Summary of findings 37
5.2 Conclusion 38
5.3 Recommendations 40
This research work seeks to look at the Implications Of Privatization On Government Owned Companies on National Development as it affects Enugu Electricity Distribution Company, Enugu state. Basic assumptions are contained in chapter one where a careful and systematic definition of development which the company undergone as a result of privatization is analyzed. The basic objective of the study was done however with the data collected and analyzed in chapter three. After the analysis, the research discovered that in as much as privatization has appeared to have provide impetus for more effective and efficient managerial style, the company has go gone a long way in order to reap fully the benefit of privatization. The effect of finance management and poor application of coordination in privatization program are the most militating against national development. The finding also revealed that stricter management as a result of privatization has created a sense of apprehension among the workers who fear that rampant and unwarranted restrict and curtailment of social welfare service may follow. However privatization should be done in such a way that it will not threaten the general welfare undermining the existence of privatization in relation to the company particularly at its implementation stage.
1.1 Background of the Study
Privatization become a real issue in Nigeria in the early 1980’s despite various committees. Ani (1969,) Udoji (1973), Onosode (1982) advise on the rationalization of the public sector.
This was a period when the collapses of oil price and the consequent contraction in foreign exchange earnings, couple with the surge in import encourage by an overvalued naira that led to serious unbalance of payments, dept, crisis and huge budget deficit.
The non-challant attitude of Enugu Electricity Distribution Company (EEDC) officials who did not care about the incessant rate of power failures and the mailman who care less about delivering the masses letter and the lack of commitment or dedication in the public sector of the nation’s economy has given rise to the issue of privatization.
Therefore, those against saw anti-social and anti progressive as not to be in spirit of section 16-1 (a and b) section 16-20 of Nigerian constitution.
The section enforces the government to control, participate and protect the nation’s economic sector, so as to disallow concentration of wealth or mean of production in the hands of few individuals or group. In 1981, the then president Shehu Shagari was conscious of poor performance and the multipliers effect of the economy establish on Onosodo Commission.
According to the report, the bane of the corporation is that the concept of accountability is absent except at the very top level. Again in the same 1981 President Shehu Shagari set up the Onosodo Commission on parastatals to study and recommend how they can be solved in order to enhance efficiency in their performance. It observed that many of the problems which seemed internal to the parastatals is in relation with government as the answer to the problem of getting parastatals that can satisfy public expectations is simply to ignore significant varieties.
Further more, in the Buhari regime of 1983, it made the first pronouncement of privatization, set up a committee to study the modalities for implementations and went ahead to trim down the subventions and give it to the corporations.
The regime however did not remain in office to implement it’s power, president Babangida in appreciation of the public outery on the least atrocious performance of the corporation and conscious of economy burden placed on government gave out continuous to findings these bodies by privatizing them. It means selling these government companies to individuals and private organization.
However, Enugu Electricity Distribution Company (EEDC) the Nigeria Railway Corporation, Nigeria Airway, Nigeria National Supply Commission, NNSC etc.
All these firms have not only failed to fulfill their lofty intentions that is, they failed to perform their functions or role in which government have in mind before establishing them, but they have also constituted a drain on the government loan purse, as if they give weight to the president budget. The special Chief of general staff, Commander Ebitu Ukiwe said the corporation are very unprofitable to the national development.
He said conducive investment has far been made with it. 4billion in equity 10.4 billion in loan in local currency apart from 11billion that has filtered to them in the form of subventions.
However, in 1988, a decree was established based on privatization of government enterprise and in that decree established technical Committee on privatization and Commercialization (TCPC).
Therefore, the technical Committee shall have the following functions that are to:
- Advice the federal military government after consultations with the securities and exchange commission and the Nigeria Stock exchange on the allotment pattern for the stock of shares of the enterprise concerned in accordance with section 7 of this decree.
- Approach through the appointed issuing houses, securities and exchange commission for fair price for each issue.
- Ensure the updating of the account of the commercialized enterprise with a view to ensure finance and discipline meanwhile the technical committee on privatization and commercialization (TCPC) has since 1988 privatized 54 companies while a total of N 227,564,155 has been realized in the process (Nigeria economist December 10, 1990 page 13)
- To ensure the success of the privatization and commercialization exercise taking into account the need for balance and meaningful participation by Nigerians and foreign relevant laws of Nigeria.
- To advice on capital restructuring needs of enterprise to be privatized on commercialized under this decree in order to ensure a good reception in stock exchange market for those to privatize as well as to facilitate good management and independence access to the capital market.
1.2 Statement of the Problems:
Considering the delays experienced in government owned companies and lack of commitment or dedication of the public sector of the nation’s economy, the researcher has found out that privatization is faced with a lot of problems in Nigeria and these problems go a long way to hamper its success in the country thereby limiting its potential contribution to the national development of our economy.
The government has crippling debts of offset and through privatization of industries, government financial involvement will be reduced thereby creating the chances of adventuring into economic frontiers.
It is necessary to note that revenue generation is not the primary aim of privatization, much more important is the desire to increase competitiveness and efficiency, and belief that the power of market place can achieve this better than the state control therefore, privatization of government parastatals is deemed necessary.
1.3 Research Questions
This research question is questions that the researcher possesses to help guide him in his search. It helps the researcher to focus attention towards the implications of privatization of government owned company on national development.
- Does privatization of government owned company has any implication on national development?
- To what extent has Enugu Electricity Distribution Company contributed to the national development?
- Does government benefit from privatizing their companies especially NEPA?
1.4 Purpose of the Study
This study seeks to look at the structural implementation of privatization program using Enugu Electricity Distribution Company, Enugu state as a study because it was public owned before it was privatized.
- To ascertain whether privatization of government owned company has any implication on national development.
- To examine the extent Enugu Electricity Distribution Company has contributed to the national development.
- To examine whether government has benefited from privatizing their companies especially NEPA.
1.5 Significance of the Study
As an academic study, it serves as a base for further research on implications of privatization and commercialization. In this case, the establishment will still be owned by the government and the appointment to chairman and directors will still be on the hands of government. This establishment will have free hand in its operations and be run on purely profit oriented basic changing competitive prices as may be obtainable I the similar private sector.
1.6 Scope of the Study
The scope of this study or research is essential focused on the analysis of the privatization program of Enugu Electricity Distribution Company Enugu state as a study.
The scope of the study is that the researcher will critically examine the implications of privatization of Enugu Electricity Distribution Company Enugu state and give a better living to the national development.
1.7 Limitation of The Study
The research was limited in some certain areas like time factor: due to the time constraint, the researcher could not carry out more study on the topic as earlier proposed. This was as a result of the shortness of the semester and examination that is at the corner, normally a research, when carried out should be done in such detailed way as to enable effective implementation and testing of recommendation. This was not possible as a result of limitedness in the area of time.
Finance: The researcher being a student did not have enough money to meet up all the cost of research which includes transportation to meet directors and managers for more information. The researcher was spending out of their meager pocket money as a student coupled with the fact that things are difficult. Many times during the research, the researcher after spending money on transportation may end up not getting the information needed.
Lately: The attitude of the respondent. Some of the vital materials or information which could have helped the quality of the study or research work was not available to the researcher due to the unwillingness of the respondents to divulge certain information to the researchers.
1.8. Operational/Definition of Terms:
Privatization: it is a process whereby the government sells its shares in certain companies or parastatals where it has controlling interest to private individual.
Full privatization: this is applied to public establishments where government participation is no longer considered necessary in order to carry on its services and to avoid mass retrenchment of workers.
Enterprise: this refers to those company or business owned and management by government or private individuals.
National Development: This is the ability of a country to improve the social welfare of the people e.g. providing social amenities like quality education, potable water, transportation, medical care etc.
Development: This refers to a change process geared at improving or making better the life and environment of man.
Parastatals: these are various ministries owned and managed by the federal government. It includes health ministry, Education ministry, Finance ministry. Etc.
1.9 Organization of the Study:
The chapter one of this research work presents the introduction, Background of the study, Statement of the problems under study and research question to enable the researcher to meet up with the problems under study, significance of the study, scope of the study, limitations of the study and definitions of some important terms.
The chapter two which presents the literature review, which is the review of what have been written by other scholars, authors, and other writers about related topics, which helped the researcher to meet up with the problems under study.
Chapter three presents the methodology which sis the research design, Area of the study, population of the study, sample and sampling techniques, methods of data collection, reliability of instruments, validity of the instrument, distribution and retrieval of the instrument and methods of data analysis.
The chapter four presents the research questions which was gotten using the method introduced in chapter three, and it will be critically analyzed for easy understanding and to be able to come up with a successful conclusion about the problem under study.
The chapter five is the conclusion and recommendations coupled with suggestion for further in some areas in which the researcher was not able to meet up with.
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