IMPACT OF PRIVATIZATION POLICY ON THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN NIGERIA. A CASE STUDY OF NEPA


IMPACT OF PRIVATIZATION POLICY ON THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN NIGERIA. A CASE STUDY OF NEPA

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IMPACT OF PRIVATIZATION POLICY ON THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN NIGERIA. A CASE STUDY OF NEPA

CHAPTER ONE

INTRODUCTION

1.1      Background To The Study

Privatization has been defined as the returning of public-owned assets to the private sector, with the control of activities been passed from the public sector to the private sector through the   issues of shares’ (Ohashi and Roth, 1980 in Anyebe, 2001). Section 14, Decree No 25 of 1988 views Privatization as the transfer of government owned shares in public enterprises to private shareholders, consisting of corporate institution and private individuals. In 1973, NEPA was formed and became operational generating, transmitting and distributing of electricity to all parts of the federation. However with gross deficiency its operations it was privatize when the federal government embarked on power reform in Nigeria in1999. This was con ducted under the Electric Power Sector Reform (EPSR) Act 2005.  The Power Sector Reform main objective included the full deregulation of the Electricity Supply, providing adequate supply of electricity generation to consumers, make the sector investor-friendly and discarding NEPA’s monopoly. The Act repealed the law which established NEPA, and led to the formation of the Power Holding Company of Nigeria, (PHCN) charged with the responsibility of providing power supply. It also restructured the power sector from a vertically integrated structure into eighteen unbundled autonomous companies. The Act targeted the  liberalization and privatization of the sole power provider-PHCN and brought in Independent Power Producers IPPs. (www.mbendi.com). Mediterranean Journal of Social Sciences(2014)

 

1.2      Statement of the Problem

The privatization policy was intended to improve electricity generation and enhance effective services delivery through sector friendly prices. However all that was expected has not been fully realized. Instead privatization led to mass retrenchment of staff, increased tariff, and the control of the company by a few elite. Consequently it has led to loss of billions of naira due to corruption in the sector. Consequently the problem confronting the research is to appraise the impact of privatization policy on the performance of public sector organization in Nigeria with a case study of NEPA

1.3      Objectives of the Study

To determine the level of impact of privatization policy on the performance of public sector organization in Nigeria a case study of NEPA

1.4      Research Questions

What is the meaning of privatization?

What is the level of impact of the privatization policy on the performance of public sector organization in Nigeria with a case study of NEPA?

 

1.5      Significance of the Study

The study shall elucidate on the concept of privatization with a view to determining its impact on public sector organization with a case study of NEPA.

1.6      Research Hypothesis

Ho The impact of the privatization of NEPA is low

Hi The impact of the privatization of NEPA is high

 

1.7      Scope of the Study

The study focuses on the appraisal of the impact of the privatization policy on the performance of public sector organization a case study of NEPA

1.8      Limitations of the Study

The research was confronted by both geographical and logistic constraint

1.9      Definition of Terms

Privatization defined

 

PRIVATISATION

Privatization has been defined as the returning of public-owned assets to the private sector, with the control of activities been passed from the public sector

to the private sector through the   issues of shares’ (Ohashi and Roth, 1980 in Anyebe, 2001) Section 14, Decree No 25 of 1988 views Privatization as the transfer of government owned shares in public enterprises to private shareholders, consisting of corporate institution and private individuals. I

 

 

DIVESTMENT DEFINED

 

       Divestment indicates the transfer of public organizations to private ownership of the enterprise.

 

  DELEGATION

 

Delegation involves the transfer of   the control of government assets or activities to private management and government involvement is constrained  mostly to assessment of results. Examples are leases, concession, management contract etc.

 

DISPLACEMENT

 

Displacement implies  that the state  promotes active participation of the private sector in former public activities to expand

 

 

 

DECENTRALISATION

Here decision – making is shifted to other agents that have been operating in accordance with market indicators while state maintains ownership and ultimate control of the enterprises.. It also includes the introduction of private sector ownership and incentives. performance contract is a typical example..(Ojobo,2005).

 

 

 

 

REFERENCES

 

Adamolekum,L and Layeye(1986) “Privatization and the State Control of the Nigerian Economy’’ Nigerian Journal of Policy and

Strategy,NDA Kaduna.

Anyebe,AA (2002) “Readings in Development Administration’ ’Shereef Salem Press .Zaria.

Ayodeji A(2012)Oppose the fraud called the Privatization Of PHCN.

Babatunde,M.A & Shaibu,M.I(2008) “The Demand for Residential Electricity In Nigeria:ABound Testing Approach.

Bos D (1986) Public Enterprise Economics, North Holland.

Chotten-,Panda M(2000)Conceptual Framework for Analyzing Labour Issues in Privatization. Fourth Pan African Privatization Summit,

Abuja, Bureau of Public Enterprises.

Dyke V.V (1969) Political Science: A Philosophical Analysis, Stanford University Press.

Ezeani, E.O (1993)Industrial Democracy in Theoretical and Empirical Analysis,Nigerian Journal of Public Administration and Local

Government.Vol.6.No.1.

Haveman R,(1976) The Economics of the Public Sector,2nd Edition,John Wiley,New York.

Helfgoth,B & and Schiero-camp,F(1970) An Introduction to development Planning ‘UNIDO Industrial and Productivity Bulletin,16.

Inugonam,T(2009) “Electricity Demand Challenges in Nigeria”PHCN News.Jan-Aug,2009 ed.

Kayode, A. (1986) Public Enterprises and the SAP. Policy Implementation and Implication in Philips and Ndekure(eds)NISER Ibadan.

Marx k(1968) Preface to a contribution to the Critique of Political Economy in Marks and Engels,Selected Works in one

Volume,London,Lawrence and Wishart.

Obadan, M.I.(2000)Privatization of Public Enterprises in Nigeria: Issues and conditions for Success in the Second Round, Ibadan:

Monograph Series No 1 NCEMA.

Ohashi, T.M and Roth, T (1980) Privatization; Theory and practice (Vancouver: Finaser Institute)

Ojobo, J.A(2005) The impact of Privatization Policy on Labour in Africa:A Political Economy Approach.The Nigerian Journal of

Administrative Studies, Vol 3,No 1.

Okolobah,V & Ismail,Z (2013) “On The Issues,Challenges and Prospects of Electrical Power Sector in Nigeria.International Journal of

Economy,Management and Social Sciences.

Okoro,O.I,Govender,P & Chikuni, E(2007) “Power Sector Reforms in Nigeria:Opportunities and Challenges” Procceedings for 10th

International Conference on the domestic use of Energy,Cape Town,South Africa.

Savas E.S( 1971) “Municipal Monopoly”Harpers,

Tanzi N: (1984) Public Enterprises in Mixed Economics.Some Micro-economic Aspects.Washington D.C IMF.

United Nation Development Programme(1991) Guidelines on Privatization, New York,Inter-regional Network on privatization ,Division for

Global and Inter regional Programmes.

 

 JOURNAL

Mediterranean Journal of Social Sciences(2014)MCSER Publishing, Rome-Italy

Vol 5 No 26-116

IMPACT OF PRIVATIZATION POLICY ON THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN NIGERIA. A CASE STUDY OF NEPA

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Privatization has been defined as the returning of public-owned assets to the private sector, with the control of activities been passed from the public sector to the private sector through the issues of shares’ (Ohashi and Roth, 1980 in Anyebe, 2001). Section 14, Decree No 25 of 1988 views Privatization as the transfer of government owned shares in public enterprises to private shareholders, consisting of corporate institution and private individuals. In 1973, NEPA was formed and became operational generating, transmitting and distributing of electricity to all parts of the federation... public administartion project topics

IMPACT OF PRIVATIZATION POLICY ON THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN NIGERIA. A CASE STUDY OF NEPA

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