Privatization of Public Enterprises in Nigeria and Its Implications on Trade Union Organization and Administration
Chapter One
OBJECTIVES OF THE STUDY
The objective of the study is to determine?
- If privatization is the solution to the already battered Nigerian economy.
- Whether privatization exercise of the Federal Government has impacted positively on the organization and administration of trade unions.
- To what extent has government legislations on privatization favored trade unions
- Whether “NITEL workers union” is now better off under privatization.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
For any research to be meaningful, it is important to review related literature. This will provide a clear perception of how the topic under consideration was treaded in the past and thus linking it with, present objectives of the research. For sake of convenience, we have divided this chapter into eight section, section one discuss the definition of privatization, section, two argument in favour of privatization, section some empirical studies on privatization, section five privatization in banking industrial section sex bank privatization in Nigeria, in the initial posturing, section seven the rational for bank privatization, section eight privatization a cursory assessment.
DEFINITION OF PRIVATIZATION
Privatization refer to selling public enterprise already owned by the state to private individual, business men so that owner shed structure should change to reflect private ownership. Privatization can be absolute partial, absolute one refers to a situation where the whole shares belonging to state are sold to private individual and government forfeit it share of ownership, while the partial one is wellthe government advertise and subsequently sale part of it share to public enterprises and private businessmen. However there are various definition put forward by different scholars and writers on the topic.
Denis (1958:10-12) says that privatization means to make private or to “convert from public to private ownership”, it define a transaction from one form to another. It should noted that, the private in privatization refers to sectors rather than persons hence privatization refer to the transfer of enterprises to private sectors interest.
Cook and Lurth Patrick (1988:10) says that privatization reflect and public sector. For hemming and Mansoor (1988:p.31) privatization is the transfer of public sector, activities to the private sector, it takes various forms including management contract, management buy out, deregulation of owned enterprises. Section four of the privatization and commercialization decrees 25 of 1988 defines privatization as the relinquishment of part or all the equity and other interest held by the Federal government of it agencies in enterprises whether wholly of party owned by the government. In this case, the engage in the investment of it shares holding designated enterprises or part of it share holding.
According to Nellis (1991:10) divestitures is another form of privatization, with involve a wide range of ownership the sale access leasing of arrangement or contracting out, in short privatization is a process of transferring of public owned enterprise to the private section, which may be partial or complete out next test it give argue in favour of privatization.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to examine the privatization of public enterprises in Nigeria and its implications on trade union organization and administration. Nigeria Telecommunications Limited (NITEL) form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of hundred and twenty (120) questionnaires were administered to respondents of which 100 were returned. The analysis of this study is based on the number returned.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:
Introduction
This chapter summarizes the findings on the Privatisation of Public Enterprises in Nigeria and Its Implications on Trade Union Organization and Administration, NITEL as case study. The chapter consists of summary of the study, conclusions, and recommendations.
Summary of the Study
In this study, our focus was on the Privatisation of Public Enterprises in Nigeria and Its Implications on Trade Union Organization and Administration, NITEL as case study. The study is was specifically focused on examining If privatization is the solution to the already battered Nigerian economy, Whether privatization exercise of the Federal Government has impacted positively on the organization and administration of trade unions, to examine the extent in which the government legislations on privatization favored trade unions and identifying Whether “NITEL workers union” is now better off under privatization.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent are staff of NITEL.
Conclusions
With respect to the analysis and the findings of this study, the following conclusions emerged;
Privatization has been embraced by most countries as one of the panacea within a larger framework for redressing recurring economic problems. It is hoped that by transferring ownership of government owned enterprises to the private sector, economic growth would be enhanced because of these Privatised enterprises.
The approaches to Privatization have been varied while the outcome has been generally diverse.
The economic implication of such programme depends largely on the institutional administrative arrangement used in the implementation, the technique of Privatization adopted and other policy reforms implemented along with the Privatization and Commercialization. Survey of Privatization and Commercialization experiences shows that different approaches to Privatization and Commercialization produce different results.
In Nigeria, very strong legal and administrative machinery have been put in place to guarantee the success of the programme.
The aims, objectives and scope have also been defined, more importantly, the programme is not being carried out in a vacuum, it is being supported by deregulation, stabilization and liberalization policies aimed at ensuring rapid turn around of the economy. The economic impact of the programme is unquestionably desirable. To derive the maximum benefits from the programme, however, some of the current policies and procedures should be reviewed to ensure improved efficiency of these government enterprises after their Privatization and Commercialization, so that such enterprises do not die under the yoke of unscrupulous investors.
Recommendation
Based on the findings the researcher recommends that;
The Privatization and Commercialization programme is one of the most controversial economic policies confronting Governments worldwide. It therefore becomes imperative that the design and implementation of the programme to be carried out meticulously. Some of these controversies usually arise from government officials who have vested interest in the enterprise and the employees of the affected enterprise whose fear augur imminent job loss. It is therefore recommended that government must ensure that the regulatory environment and competition policies must be part of the process of Privatization. Accordingly, government must repeal all decrees/laws that inhibit competition and must pass laws that protect investors.
Government should also be prepared to address any problem, which may arise because of the Privatization and Commercialization programme. A proactive programme of education of the labour union as a benefit of Privatization and the protective safeguards against unmitigated loss of job should be embarked to avert industrial crisis.
This trouble-shooting initiative is necessary because of incessant threats from labour over sideling of labour issues in the Privatization and Commercialization exercise. Take NITEL for example, it was stated by the union that “the prevailing circumstances have eroded confidence and made the entire workforce at NITEL very restive and agitated” (Ogidan, A. 2001 p.31). As a result of this NEPA has taken the initiative to allay the far expressed by its workers over the security of their jobs following formal takeover of it’s marketing functions. The enlightenment campaign on the other hand will help to solve the problem of ignorance because it was discovered during the course of this research that one of the greatest problems working against these programmes is that of illiteracy and stark ignorance on the part of the workers.
Government sales option (of 40% to strategic partner, 20% Nigerian public and 40% government) should be implemented accordingly or even at a reduced equity holding by Government, however, it is recommended that Government divests gradually it’s remaining shares at a minimum rate of 55 per year to the Nigerian Public. The advantage here is that the majority shares would be owned by Nigerians, while government gets out of business. This was the same thing that happened in the UK where 51% shares were sold while the government retained 49% shares, but progressively over 9 years the government sold off 48% of its shares eventually retaining only 1% which enables it to enforce the provision that no entity shall own more than 15-205 shares.
It is equally recommended that a second Telecommunication Network Operator (Second carrier) be appointed immediately and be allowed to commerce operation. It will also prepare the group to absorb good staff as may be displaced in a Privatised NITEL and to offer real competition.
It is also recommended that the Privatization and Commercialization exercise be complemented with other policies to promote competition and improve efficiency of enterprises. This is because there are evidences to suggest that the countries that have performed relatively well in Privatization and Commercialization have been those that have also embraced comprehensive economic reforms. Government should ensure that there are no delays in implementing the Privatization and Commercialization after deciding to Privatise because this generally cause deterioration in performance and also lowers sale proceeds. Government should always ensure that the Privatization and Commercialization be transparent, competitive and fair. Lastly, Government should ensure even spread among classes and regions of Nigeria acquiring the 20% shares.
References
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- Adebayo, K. (2011). Deregulation and Privatization in Nigeria: Benefits and Challenges. PaperPrepared for Industrial Sociology Seminar in the Department of Sociology, University of
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