Privatisation or privatization in american english can mean different things including moving something from the public sector into the private sector. The share of government in the economy is unduly large since consolidated government expenditures rose from 29% of gdp in. Hanson, whose book on public enterprise and economic development is to be published early next year, is reader in public administration at the university of leeds. In nigeria for example, the private enterprises cover a wide range of different types of industries as distinguished by various criteria such as size, sector, ownership structure, employment and technology. In nigeria for instance, pes, before the introduction of privatization, used to consume a large portion. Development in nigeria department of social sciences. Public enterprises as a form of business organisation has attained a great deal of significance in recent times.
It is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. This is a consultation draft of overview of public transport in subsaharan africa. What are the problems of nigeria enterprises answers. This type of company is a popular form of company because it is easy to organize and is considered to be more efficient. E 2 1 department of public administration, federal polytechnic bida niger state, nigeria. Public enterprises are autonomous or semiautonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities. It may be inquired whether the law uses the term enterprise differently from the word public enterprise. Lets understand in detail about the origin and the importance. Public enterprises came into existence as a result of the expanding scope of public administration. Public enterprises are business organizations set up and financed by the government to provide essential services to the members of the public.
The level of government that owns the enterprise centralfederal, stateregional or local. One of the inheritances of nigeria from her colonial masters is an extensive public sector. The growth of public enterprises in nigeria came against the background of sudden windfall from the. Public enterprise, a business organization wholly or partly owned by the state and controlled through a public authority. National policy on msmes 5 foreword this national micro, small and medium enterprises policy is our concerted response to the challenge of developing the subsector of the nigerian economy in a structured and efficient. In this article, we shall define economy and privatization and then list the methods of privatization, give a brief history of privatization in nigeria, offer reasons why successive governments embarked on the privatization of public enterprises, discover whether the problems outweighed the benefits, discuss the present outlook, share success stories and then roundoff. Privatization has several benefits such as reduced government bureaucracy, reduced state monopolies and financial structures, increased competitiveness, increase in quality of goods and services reduce corruption and control by government, increase staff quality and supervision, improve market analysis, free up government funds for more pressing problems, create employment, reinvigorate the.
The history of public enterprises in the usa dates back in the nineteenth century and was characterized by the state chartered banks in which the federal government has significant portion of the stocks. Analysis of the success of public enterprises in nigeria scholarworks. The main focus of the group is to be the leading provider of value added services, technologies and strategic inputs that support the. Evaluation of privatization policy in nigeria 1999 2004. The impact of privatization and commercialization in nigeria. Performance of public enterprises in nigeria and the privatization option article pdf available march 2014 with 3,626 reads how we measure reads. The history of the evolution of public enterprises in nigeria is as old as that of colonialization, and successive governments in the country since independence. They consume a large proportion of national resources without commensurate performance and service delivery. Pdf performance of public enterprises in nigeria and the. Meaning of public service the meaning of pubic service is contained in section 277 91 of the constitution of the federal republic of nigeria of 1979 now section 169 of the 1999 constitution as encompassing the civil. After independence, the nigerian economy seemed very promising. Public enterprises and suggests measures for improving their efficiency.
To make provision for the efficient governance of stateowned enterprises and the monitoring of their performances. Against, the background of the above explication, this research work empirically explored into the management of public enterprises in nigeria with a particular reference to nigeria television. Some public enterprises are placed under public ownership because, for social reasons, it is thought the service or product should be provided by a state monopoly. Government chose public sector as a means or medium for economic and social development due to poor managerial skill, weak technological base. Public enterprises in nigeria politics essays essay. How public enterprises is been funded in nigeria answers.
Many african stateowned enterprises soes, particularly those in. Problems and prospects of privatization in nigeria. Public corporations are establishments and enterprises that are government owned and run that came into being through acts of parliament or statutes, decrees or edicts to provide essential social and welfare services to the citizens of the country. Economic phases journey since independence 1948 1955. A brief history of public and private involvement in schools in ireland. The reality is that majority of the enterprises in which government holds full equity are mostly undercapitalised and managed. A national holiday commemorating independence is celebrated on october 1. Nigerias public sector was the indegenization policy of 1972 as enacted by the nigerian. In other words, besides the civil services there has been, in virtually every modern state the emergence and development of public enterprises that combine the. Colonialism is a major feature of the economic history of nigeria. The bureau of public enterprises bpe serves as the secretariat of the national council on privatisation ncp and is charged with the overall responsibility of implementing the councils policies on privatisation and commercialisation.
The most common criterion to distinguish between large and small businesses is the number of employees hatten. Background experience worldwide has shown that public enterprises pes have failed to live up to expectations. Unresolved challenges and new opportunities this publication features the papers. The objective of the policy is to enhance and improve the efficiency of public enterprises. The latter meaning has the advantage of helping one to draw a line between privatisation and other varieties of public enterprise reform. Nigeria achieved independence from the united kingdom on october 1, 1960. Types of public enterprises management notes tyrocity. Pdf an analysis of the poor performance of state owned. Nevertheless, public enterprises are in dilemma of some management constraints, which tend to hinder their goals and objectives. Research4 suggests that there is a wide range of legal forms for soes, depending on factors such as.
A reflection on public enterprise sector in nigeria semantic scholar. Departmental management is suitable for public utility services and strategic industries. Small and medium scale enterprises smes in nigeria the marketing interface. More importantly, they fail to allocate these resources efficiently. The paper titled privatization of public enterprise in nigeria. An overview 335 on public enterprises defines the word enterprise while other laws use the term public enterprise. In spite of all the efforts, unemployment rate has remained high, rising from.
Theory and practice page 7 public administration is the machinery used by the service state to place itself in a position to make plans and programmes that can carried out, and to carry out the plans and programmes it has made. Adeyemo 2005 wrote on public enterprise reforms in nigeria. The following research questions will be answered in order to identify and examine entrepreneurship development programme in nigeria and proffer solutions to them. This led to an industry consensus to categorize pr work. In india, railways, post and telegraph, radio and television are working as government departments. Privatization and commercialization of public enterprises in nigeria an appraisal of telecommunication abstract it is because of social issues like economic inequalities, unemployment that made the state to interfere in economy of nigeria. The history of public corporations in nigeria dates back to the colonial era. Introduction privatization of public enterprises is predetermined by crisis in the nigerian economy.
Public corporation is defined as a large scale business organization that is set up, owned and financed by the government of a country with the aim of providing services to the member of the public. Adeyemo department of local government studies, obafemi awolowo university, ileife, nigeria asked in small business and entrepreneurship, nigeria. Lagos, nigeria october 2005 abstract this study, small and medium scale enterprises smes in nigeria. Public enterprises governance act 2 of 2006 namibia legal. Relationship exists between socioeconomic, political and environmental factors and the development of entrepreneurship in nigeria. The colonial government established some public enterprises to provide essential services like railways, roads, bridges, electricity, ports and harbors, waterworks and telecommunication. Unresolved challenges and new opportunities cover designed by the graphic design unit outreach division united nations department of public information isbn 9211231700 sales no. Britain eventually gained control of nigerian administration. The concept and characteristics of public enterprises in ethiopia. Pdf this study examines the qualitative and quantitative evidence relating to allocative and productive efficiency in the publicly owned nigerian.
Defining state owned enterprises soes soes are known by many names government corporations, government business enterprises, governmentlinked companies, parastatals, public enterprises, public sector units or enterprises and so on. During the british colonial administration, nigerias economic posture at the international market was reckoned with in terms of agroallied products. The agreements of statement of corporate intent sci contact details. Oji department of political science, enugu state university, enugu nwachukwu emmanuel c department of public administration, imo state polytechnic umuagwo, ohaji eme, okechukwu innocent department of public administration and local government studies. Benin relying heavily on unfettered exports to nigeria the nigerians closed the. As well as the name, the definition of soes also often varies across countries. Examples of such enterprises are national bank, allied bank, castel breweries, nnsc nigerian national. Government functions and services may also be privatized. Meanwhile, during the sap era nigeria s net transfers to external creditors absorbed 5 percent of gdp. A reflection on public enterprise sector in nigeria. An analysis of the poor performance of state owned enterprises in africa. The formation of the panama rail road company in 1904 was another victory of the public enterprise system. In the same way, strategic industries like defence and atomic power are under government.
During twentieth century various governments started participating in industrial and commercial. Managing the challenges of public enterprises in nigeria and the privatization option okeke. They were set up by the government to speed up the process of economic development as. This enterprise is financed from the money raised by the government through the taxation and other means. Public sector restructuring and governance in nigeria. Esu and inyang 2009 state that from the late 19 th century, the system of state enterprises begun in 1898 when the british colonial administration undertook the railway transport. Other holidays are new years january 1, eid al kabir feast of the sacrificemovable date.
In this company, government owns at least 51% of total shares. So, what are the problems of public enterprises in nigeria. Public and private schools how management and funding relate. Problems and prospects, was undertaken to find out if the sme subsector in nigeria has performed its critical role of driving the countrys industrial transformation and. Public enterprise literally means business enterprises that are owned and managed by the government which might be the state, federal or the local government or its agencies. The views and interpretations herein are those of the authors and should not be attributed to the european commis. Valuation issues and problems were written by aluko 2004, the research was qualitative in nature and its emphasis was on privatization of public enterprise in nigeria.
Public enterprises occupy an important position in the indian economy. It is also the sense in which the term has been statutorily defined in nigeria. This paper examined the activitiespolicies of privatization and commercialization of public enterprises in nigeria and how they have affected the development of the nation. A public enterprise which is established under the prevailing law of the country is called a government company. Public enterprises as a form of business organisation have gained importance only in recent times. Privatization or privatisation in british english can mean different things including moving something from the public sector into the private sector. According to the global public relations handbook, public relations evolved from a series of press agents or publicists to a manner of theory and practice in the 1980s. The advent of the concept of welfare state after the second world war and the increasing developmental initiative undertaken by government across the world, the system of public enterprises was developed. Before going into the types of public enterprises in nigeria, its good to know that public enterprises. In nigeria, the earliest example of public enterprise emerged under colonial rule in the form of marketing board 1936 and the conversion of certain government departments into corporations in the immediate years after the second world war nigerian railway corporation and nigeria ports authority. Many saw nigeria, with 15% of africas population, as an emerging economy.
Government also passed a privatization policy during ndp 8, which resulted in the creation of the public enterprises evaluation and privatization agency peepa. This chapter examines the works of scholars in areas such as. The ogbete mines operations and others in the country were merged into a new corporation in 1950. Public enterprises public administration the united nations. During 20th century various governments have taken active part in the industrial and commercial activities. The enterprise is subjected to legislative security.
Definitions of public enterprise generally speaking, public enterprise has two dimensions public dimension which usually refers to public. I department of business administration, chukwuemeka odumegwu ojukwu university igbariam campus, anambra state, nigeria abstract one of the motivating factors for establishing public enterprises in nigeria is to. This is the second of two articles, the first of which appeared in the winter 1958 issue. Administration is of importance for another reason too.
The major findings of this study include the following. Government functions and services may also be privatised which may also be known as franchising or out. The public enterprises came into existence as a result of the expanding scope of public administration. Public enterprises privatisation and commercialisation act arrangement of sections part i privatisation and commercialisation of public enterprises section 1. A series of unfortunate political and economic events have stalled nigerian growth. Small and medium enterprises are named by adjectives indicating size, thus economists tend to divide them into classes according to some quantitative measurable indicators. Public sector finance in nigeria has largely been responsible for the provision of economic, social and political infrastructure in the growth of the nigerian nation.