EFFECTS OF PRIVATIZATION AND COMMERCIALIZATION ON THE COMPANY MANAGEMENT
A CASE STUDY OF SELECTED COMPAY IN IMO STATE
The interest of this study is to destroy valuable contributions to companies management and general industrial development in Nigeria through privatization and commercialization Nigeria has been lacking behind in terms of development owning to numerous reasons some of which are embedded in the management of her local producers system. In this study therefore, the interesting is to carryout some research into these problem that impede company management process in Nigeria and suggest ways and means of moving them through modern management process and in addition X-ray the far reaching benefit that could be drawn from privatilization and commerclizatin on company management.
Faced with the dilemma of external indebtedness and internal economic stabilization measure.
The major component of this medication is the gradual dismantling of state control. How the management of companies affected by privatization going to fare, because the crux of this study. Some selected government enterprises operating within the continues or bead quarter in the state were studied to give the research an empirical touch. In conclusion few question which may be agitating the minds of people were answers. Among these question are:-
Why did government intervened in economics activates an did why is it urgent now that state control has be dismounted for private initiations to come in?
A note of wanting was sounded about seeing privatization as a solution to all management and economics ills and that the right remedy should be given to the appropriate private ailment at the right time.
TABLE OF CONTENT
1.1 General background to the subject matter
1.2 Problem assouated with the subject matter
1.3 Problem that search will contend with
1.4 Important of the studying area.
1.5 Definition of important terms
2.0 Literature Review
2.1 The origin of the subject matter
2.2 School of thought with the study area.
2.3 The school of thought relevance to the problem of the search .
2.4 Different method of the studying the problem
3.1 Data presentation
3.2 Analysis of the data
It has been exonerated that the economic situation of Nigeria from the recent past to p
resent is anything but good. Datas back to the colonial ear, Nigerians economy has been saddled with planlessness and bad administration. Other countries like Taiwan, south Korea and even south African that started from the same platform as Nigerian in quest of economic emancipation have today made considerable achievement.
As for Nigeria, she was held down to low economic attainment by a vicious circle of force, tribalism, nepotism, political profiteering, poor education orientation and poor work altitude. This circle however, was often broken by seeing economic progress as in the area of grandaunt pyramids of the sixties and the oil boom era of the seventies which bid not stand the test of time.
Nigeria have been conscious of dividing economic fortunes and proclamation of such measures as how profit image operation feed the Nation,(OFN), Austerity measures war against indiscipline program (SAP) of the Ibrabim Babamosi Babangida administration (1965-93) . SAP has one of its children as privatization and commercialization.
All the above measures were geared towards economic stabilization. The extent of success of each depends upon the straight of will and purpose of their proporients.
Going down memory came, Nigeria was one known for her groundnut pyramids . In the 1970-84, groundnut production had gone down considerable from what it used to be in the sixties when Nigeria was the world trading exporter of groundnuts, by 1984, Nigeria has become a net importer of groundnut oil, cocoa, beans and cotton to mentioned but a few and so was importing more than it was exporting. With the outbreak of Middle East war in 1973, oil prices rose to an unprecedented level and Nigeria becomes the most industrialized in the developing countries.
Unfortunately she made no contingencies and could not utilize her sudden found wealth. Nigeria abused her ability to import and this depleted her enternal reserve to the barest minimum Nigeria was no longer in a position to pay for her imports through exchange earning, she began to accept short credits which ironically graduated to long term embarrassing debts.
To finance the countries long term projects she sought for and contracted to assist in the wan syndication and for which a significant amount from the loan was paid out as management fees, legal fees, placement fees and so on.
By 1981, most of the school term loan Nigeria borrowed to financial projects with long term returns began to mature by 1983, there was a backlog of matured debts and Nigeria was harrssed from pillar to post by creditors. She was advised to borrow from IMF. Given their considitionalities, but Nigeria refused because of us far reading Implication on the economy.
The government rather Rose to impose economic measures with the aim of restricting the economic, making the productive sector more completive and reallocating resource for more efficient uses. However, because of the lack of political will, the measure were not pursued vigorously until the military came win 1984 with a view of ensuring a turn around from economic independence and depression. This economic down turn was accompanying by austerity. In this case, the problem was not solved as there was a persistent decoration of the balance of payment , external debt problem, capital flight and further devaluation of the Niara. To correct some of these anomalities and Immune, the economy future shocks. The military government reacted promptly and mapped out the economic recovery package –SAP to improve resources, allocation increase economic potential.
Privatization and selective commercialization therefore forms one of the measures for implementation and realization of the objective of SAP.
1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
The study on the effect of privatization and commercialization on company management is commercialization on company management is organized under three chapters.
The first chapter introduces the topic of the study, give the background of the subject matter, problem associated with the subject matter, problem that search will contend with , important of studying the area, definition of important terms, then reference.
The second chapter reviews literature which has been written on the subject matter in the past presentation analysis the data, and makes recommendation, which brought about reference.
1.2 PROBLEM ASSOCIATED WITH THE SUBJECT MATTER
The aim of these studying are: To investigate the effect of the initiated process of gradual succession of public sector enterprises by the private sector on such enterprises that by the nature of their operation and other socio-economic factor are best performed by the private sector.
To evaluate the recommended solution to the problem of absolute dependence of commercially oriented perastatals on the treasury for funding and to encourage their approach to the capital market.
To find out ways of ensuring positive returns on public sector investment in commercialized enterprises and re-orientating the enterprises for privatization and commercialization towards a new horizon of performance improvement, viability and overall efficiency.
Lastly, to provide institutional arrangements and operational guideline that would ensure that the gains of privatization and commercialization are sustained in the further.
1.3 PROBLEM THAT SEARCH WILL CONTEND WITH
Privatization and commercialization of public enterprise like wind is blowing across the world, dismantling old structures and ideas and creating new foundation in political economy.
The world privatization was corned to desirable the process of moving from the public to the business. It involves the sale of formerly public enterprises to private individuals and groups. Privatization can also be partial (government still retaing some shares in the business) or total ownership is transferred to the private person who have paid an agreed amount to the government.
The privatization and commercialization of 1988 and baren of public enterprise act of 1993, defined privatization as the relinquishment of part or all of the equity and interest held by the federal government or any of us agencies in enterprise weather whorlly or partly owned by the federal government.
The decree N0 25 of 1988 defines commercialization. As the organization of enterprise wholly or partly owned by the federal government in which such commercialization enterprises shall operate as profit making commercial venture and without receiving money from federal government.
Privatization and commercialization no doubt aim at achieving some objectives. These objectives are lack of well seasoned management and wastage of resource rather than profit making becomes the force during the public enterprise into private hand.
This study objective is to find out the effect of the exercise on management of affected comprises. To achieve this, the following question, need to be answered:
1. How do we go about not about getting the best from privatization but also controlling it to yield expected output?
2. What categories of public enterprise should be practiced should the viable ones be privatized?
3. Will private individuals and initiatives be able to provide goods services efficiently and at minimal cost, that is will denationalization bring about efficient and reduced cost of production?.
1.4 IMPORTANT OF STUDING THE AREA
Seeing the increase in the chromching role played by the public sector in provision of goods and services, affects the entire economy there arise the need to restructure the economy, because of drastic reduction in revenue accruable to the government.
Then government has to re-consider and re-direct its scarce resources into more socially beneficial and economically productive venture rather than engaging in pure economic activity which the private sector would handle better.
The study will examine if privatization could be a remedy for all billing public sector, it will also examine the most efficient way in which privatization policy will re-applied so that the best will be extracted from it .
The work also become exigent, as it is a pre-requisite for the award of higher National Diploma in Business administration and Management and technology .
1.5 DEFINITION IMPORTANT TERMS
1.5.1 For the sake of Charity, thus study will give operational definition of some variable in the topic
Privatization: The relinquishment of part or all the equity and interest held by the federal government or its agenesis enterprise whether wholly or partly owned by the federal government to the private sector.
Commercialization: The re-organization of enterprise wholly or partly owned by the federal government in which commercialized enterprises shall operate as profit making commercial venture and without subvention from the federal government .
Company: A joint stock or limited liability company which is legal entity setup for the purpose of conducting commercial or industry operation and with a capital which is divided into shares that are held by its member
Effect: To causes, produce or have a result.
Management: The administration and policy makers of business or other organization in a corporation .it is the board of directors elected by share holders and the officers of the cooperation appointed by the board of directors.
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