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Privatization And Commercialization of Public Enterprises in Nigeria: A Reflection of The Preferences of The Ruling Elites
Subject area: Arts, Social Sciences and Humanities · Area of research: Privatization and Commercialization
DOI: 10.64388/IREV9I12-1718873
Abstract
The study examined the politics of privatization and commercialization of public enterprises in Nigeria. The study used the theories of public choice theory and elite theory to buttress the points that privatization and commercialization policies are not the solution to public enterprises in Nigeria. It is in the views of the writers that privatization and commercialization programmes are not necessarily meant to benefit the public, but rather for the benefit of the ruling class. It is clearly pointed out that the main problem of public enterprises lies with the conflicting objectives of public enterprises meant to operate as business venture but at the same to provide goods and services at a subsidized price. Through empirical reviews in the study, it was revealed that: with political interference from government at the expense of economic rationality, public enterprises are still expected to make profits. Economic and political rationalities are hardly compatible. It was recommended amongst others that: Public enterprises in Nigeria should be managed as business ventures by granting them through the necessary laws the autonomy they deserve to function effectively without unnecessary interference by political office holders; Ministerial and parliamentary control measures should be straightened for proper and close supervision and oversight functions on the public enterprises.
Keywords
Privatization, Commercialization, Politics, Elite Theory, Conflict Of Objectives.
References
[1] Adegbite, K. J. (2020), Privatization and commercialization of public enterprises in Nigeria: The challenges or problems and the way forward, Sapientia Global Journal of Arts, Humanities and Development Studies, 3 (3):311-322.
[2] Adekola A. A. & Raheem, T. K. (2016), Privatization of Public Enterprises in Nigeria: Challenges and Prospects, Entrepreneurial Journal of Management Sciences, 5(1).
[3] Adelaja O. O. (2007), Theoretical and empirical issues in privatisation: A comparative study of the British and Nigerian experience, Journal of social science, 14(1): 25-43.
[4] Davis, E. (1988), Public enterprises reform. London: Verso.
[5] Obikeze, O. S, & Anthony, O. E. (2004), Public administration in Nigeria: A developmental approach. Book Point Limited.
[6] Olukoshi, A. (1985), Economic crisis, structural adjustment and the coping strategies of manufacturers In Kano. Nigeria New York: United Nations Research Institute for Social Development
[7] Onuoha, B. C., Umoh, E. D. and Ufomba, H. (2017), The impact of the politics of privatization and commercialization of public enterprises in Nigeria on the level of productivity and economic viability: The case of ALSCON and NITEL, Asian Development Policy Review, 5(1), 43-55.
[8] https://www.scribd.com/doc/128958291/Elite-theory
[9] https://guardian.ng/news/why-yaradua-stopped-sales-of-refineries-by-obasanjo-falana/:Why Yar’Adua stopped sales of refineries by Obasanjo – Falana
[10] Shirley, M. and P. Walsh, (2000), Public versus private ownership. The current state of debate. Policy Research Working Paper No.2420. Washington DC: The World Bank.
How to cite this paper
@article{1718873,
author = {Akerete Anthony Udotim, Solomon P. Akpabio, Ochulo, Chukwuebuka Remigius},
title = {Privatization And Commercialization of Public Enterprises in Nigeria: A Reflection of The Preferences of The Ruling Elites},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {12},
pages = {1684-1689},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1718873.pdf},
abstract = {The study examined the politics of privatization and commercialization of public enterprises in Nigeria. The study used the theories of public choice theory and elite theory to buttress the points that privatization and commercialization policies are not the solution to public enterprises in Nigeria. It is in the views of the writers that privatization and commercialization programmes are not necessarily meant to benefit the public, but rather for the benefit of the ruling class. It is clearly pointed out that the main problem of public enterprises lies with the conflicting objectives of public enterprises meant to operate as business venture but at the same to provide goods and services at a subsidized price. Through empirical reviews in the study, it was revealed that: with political interference from government at the expense of economic rationality, public enterprises are still expected to make profits. Economic and political rationalities are hardly compatible. It was recommended amongst others that: Public enterprises in Nigeria should be managed as business ventures by granting them through the necessary laws the autonomy they deserve to function effectively without unnecessary interference by political office holders; Ministerial and parliamentary control measures should be straightened for proper and close supervision and oversight functions on the public enterprises.},
keywords = {Privatization, Commercialization, Politics, Elite Theory, Conflict Of Objectives.},
month = {June},
doi = {https://doi.org/10.64388/IREV9I12-1718873}
}