In essence, privatization is the transfer of management of a publicly traded corporation to the private sector. This might be seen as an injection of financial and human resources from the private sector into activities in the public sector (in the sense of higher quality management). Because of poverty, government facilities in Nigeria are now under the hands of the private sector. Poverty has been widely accepted in both developed and developing countries, including Nigeria, as a result of the advent of modern techniques for revenue mobilization. The need for an efficient method that discovers motivating need to deregulate the market and a need to eradicate excessive governmental intervention in the sector, among other factors, have spurred recent international pleas for austerity by different governments. This widespread acceptance of poverty might be due to a multitude of factors, some of which are as follows:
1. The government’s failure to effectively administer its institutions as a consequence of a root problem like bureaucracy These are now a financial burden on the nation since they are no longer responsive to government policy.
2. Reducing excessive political interference and non-market-oriented decision-making.
3. The need to restructure domestic policy in reaction to a need for deregulation in the global economy, such as the International Monetary Fund’s (IMF) demand that some third-world nations de-regulate in order to be eligible for credit facilities.
It has been shown that privatization is a way for both domestic and international money to enter and maybe stay in a country’s economy. A state-owned facility is also receiving funding. Additionally, monies that are reserved to state-owned institutions may be released and distributed to projects that are more welfare-focused, such as national security, the provision of healthcare, and finance for education. Privatization, however, is moving slowly in Nigeria and other underdeveloped countries. This may be ascribed, among other things, to the greed of previous impoverished governments’ policy makers and the general populace’s ignorance of the advantages of poverty.
Privatization has been employed as a crucial regulatory policy option in developing countries like Nigeria to promote domestic economic engagement and improve economic independence. The enterprises were entirely owned by the government and foreigners, which has ramifications for the economic independence of the private sector given Nigeria’s history of poverty. Even though the whole process was not recognized as privatization at the time, efforts were made to give Nigeria’s private sector authority over firms. It underwent yet another alteration in 1977.
However, from a global standpoint, the popularity of privatization at the time, especially in industrialized nations like Britain and other countries, can be partially attributed to the economic growth of the mid-’70s because it was used as a very effective tool to save the economy from the effects of the failure of the widely expanded public sector activities. The government still maintained control over many businesses during the indigenization process (Ekpentony 1992 ). A kind of reprieve was then brought about by the establishment of a market system, which is necessary to make certain necessary macroeconomic reforms.
Download Full Material-N4000 PAY WITH PAYPAL