IMPACT OF PRIVATISATION OF PUBLIC ENTERPRISES ON POVERTY REDUCTION IN NIGERIA(A STUDY OF TELECOMMUNICATION INDUSTRY IN NIGERIA)
Privatization as an economic policy is of no doubt a good economic tool for development but in Nigeria, the policy has generated many controversies. Some Nigerians argued in its favour while others are antagonistic about its introduction in the country. This research work, therefore, sets out to examine the impact of privatization of public enterprises on poverty reduction Nigeria, using the telecommunication industry as a study.
Private sector-driven economy comes on the heels of the failure of government and its institutions to live up to their responsibilities. Evidence of government failure abounds but thickens with its direct engagement in the creation and supply of goods and services. Public companies are known to perform badly when compared with their private sector counterparts. With sharp reductions in government’s revenue, adequate subventions to these institutions could not be sustained. Some are closed down while a good number operate beneath installed capacity. Salaries of workers are not paid and many of them are disengaged. Privatization is seen as a solution to the problem of public enterprises. In other words, the size of the public sector needs to be reduced, allowing greater share to private sector. Even at that, some fears are entertained as to the workability of privatization in developing countries.
This study is divided into five chapters, chapter one looked at the background study of privatization and statement of problem. Also some hypothesis were formulated to serve as guides on the subject matter. Chapter two discussed the conceptual framework, the growth of telecommunication industry and the impact of privatization on the poor.
The research itself was designed to be descriptive, hence the survey research approach was adopted. Chapter three took care of the methodology used for collecting data, which involved questionnaires’ administration and secondary data collection. Chapter four handled data presentation, analysis and interpretation, the Chi – Square (X2) was used for testing the hypotheses formulated.
Finally, chapter five contains summary, recommendation and conclusion which will help the stakeholders to take a stand on the argument about governments’ privatization programmes in Nigeria