Preliminary reflections on the privatization policy in Nigeria

Purpose - Like many developing countries, Nigeria embarked on the privatization of many of its state owned enterprises (SOEs) in the late 1980s. Although a number of stakeholders, for different reasons, are opposed to the divesture of many of the country's SOEs, the Bureau of Public Enterprises (BPE), the agency charged with the responsibility of implementing the Nigerian policy on privatization and commercialization, has continued with the exercise. The first phase of the privatization programme began in 1988 under the Technical Committee on Privatization and Commercialization (TCPC) and ended in 1993, and the second phase began in 1998 under the BPE and is proceeding with full steam. As of last count about 400 SOEs have been divested both by the TCPC and BPE. This paper aims to reflect on the privatization policy in Nigeria. Design/methodology/approach - The paper seeks to reflect on the privatization policy in Nigeria and examines some of the strengths/successes and weaknesses/failures of the exercise. Findings - There are enormous benefits that Nigeria can reap from privatization if the exercise is done properly. This is possible if it addresses the major problems that confront it with regards to various aspects of the implementation of the sale of SOEs. Originality/value - The paper reflects on privatization in Nigeria, proffers some way forward and points to some lessons for other African or developing countries that have embraced or are planning on embracing the policy.