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Project Topic:

THE EFFECT OF PRIVATIZATION AND COMMERCIALIZATION OF GOVERNMENT OWNED INDUSTRIES

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 55 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   1,779 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY.

The period of between 1972 to 1990 was a period described in the history of Nigeria economy as the period of oil boom within which time incoherent application of generated revenue from sale of crude oil was made.

The various government many medium scale industries in various parts of the country same of these industries so established import as much as 90% of its raw material imputer from overseas countries.

The down turn of the Nigeria economic fortunes which resulted from global oil gut has a negative impact on the economy and which depended on the revenue from the crude oil finance her their input oriented economy to as much as 85% could not be unaffected in 1986, the Nigeria Government applied for a loan of $2.3 billion from the international monetary funds of finance her acting economy. The international monetary fund hence presented as set conditional  ties which will equal Nigeria for  the loan. One of these conditional ties was reduction of government expenses on public parasitical.

1.2     STATEMENT OF THE PROBLEM

According to Wmer Sombert, capitalism has its own spirit which is profit seeking spirit the motives to make profit from investment is considered a moving force which derives investors.

When ever the expected returns from investment is not fourth coming such investment may be considered as avenue of financial loose, such as the economic situation which contributed the Nigerian society when act of total of eleven billion #11 billion investment on parastatal and government owned industries realized a divided of 93.1 million i.e 39% return.

This poor return portrays the fear that such investment is a waste of public following a global recessive in the oil revenue.

The first official public statement on privatization was in the 1986 Budget special by the Head of State. President Ibrahim Banangida, when he said “Government parastatal have for long been subject of the study and policy, review. They too have generally come to constitute an unnecessary high Burden on government resources.

They have been variously classified for purpose of reform government has now decided that as from 1986 the value of non statutory transfer to all economic and quest economic parastalals would constitute not more than 50% of their level. They are to find the balance from increase in the price of their services and products charges, tariffs and rate.

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