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Implementing a Strategy for Economic Reform: An Assessment of Nigeria's Privatization Program

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  • Paul G. Adogamhe

Abstract

The Nigerian Government re‐launched a program of privatization in 1999 with the aim of reducing government's participation in business management, attracting foreign and local investments, transferring of technology and skills into the public enterprises in order to create more jobs and boost economic growth. This policy thrust was based on the premise that private investment and business initiative would result in improved profitability, greater efficiency, and the promotion of rapid economic expansion. This paper examines the merits of the above hypothesis, noting the unanticipated legal, economic, and political dilemmas that came to be associated with the implementation of the privatization program in Nigeria. The program appears to have been a major failure through the very poor net returns on investments from the sale/concessioning of the enterprises, loss of several jobs, corruption through process default and new economic dangers from its infraction of creating monopolies/oligopolies in sensitive economic sectors. Therefore, the paper recommends that there is urgent need to rethink the process of reforming the public enterprise sector in Nigeria in order to tackle corruption, review the Public Enterprises Act of 1999 and other laws for assuring competitive business environment as well as improve transparency and accountability in public governance.

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  • Paul G. Adogamhe, 2012. "Implementing a Strategy for Economic Reform: An Assessment of Nigeria's Privatization Program," Poverty & Public Policy, John Wiley & Sons, vol. 4(1), pages 1-38, March.
    • Handle: RePEc:wly:povpop:v:4:y:2012:i:1:p:1-38
    DOI: 10.1515/1944-2858.1144
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