“AN EVALUATION OF FINANCIAL PROBLEMS AND PROSPECTS OF PRIVATIZATION IN THE NIGERIA ECONOMY”

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“AN EVALUATION OF FINANCIAL PROBLEMS AND PROSPECTS OF PRIVATIZATION IN THE NIGERIA ECONOMY”

ABSTRACT

          This work is designed to find out the financial problems and prospects of privatization in Nigeria, a case study of Nigeria Breweries Plc.

          The work therefore covers the background, significance and objectives of the study in chapter one. Which chapter two views issues dating to literature and tried to highlights it’s concepts and inceptions of privatization in Nigeria. Chapter three shows the research design and methodology and pointed out the area of the study, the population, determination of sample size and locations where the data was found.

          A random sampling was used for selecting research sample and questionnaires administration. Primary and secondary sources of data were used. The primary sources is form the questionnaire administration which the secondary sources are from text-books, educational journals and magazine. The data is presented in tables and percentages, and figures were also used in the analysis.

          In testing hypothesis, the chi-square test was conducted at an appropriate significant level and degree of freedom. Also, standard deviation was as well used.

          From the data analyzed in chapter four, the following findings were made: Lack of findings for share/purchase is a problem for successful privatization in Nigeria, therefore, no other financial problems can also noted as a good option for improvement and development in Nigeria.

          Lastly, the research work contains findings recommendations and conditions for further research.

 

LIST OF TABLE

TABLES                                                     DESCRIPTION

4.1     Administration of Questionnaire

4.2     Level of sample staff

4.3     Sex Distribution of respondents.

4.4     Educational Qualification of respondents.

4.5     Years of work experience of respondents.

4.6     Responses to find out if lack of funds is a                               problem to the on-going privatization programme.

4.7     Responses to identity the major financial problem                           encountered in the on-going privatization                                programme.

4.8     Responses as to whether the problem of finding for share purchases can be solved by the privatization share purchase loan scheme (PSPLS) designed by the government.

4.9     Responses as to the extent privatization share                        purchase loan scheme (PSPLS) can solve the                       problems of finding for share purchase in the on-                            going privatization programme.

4.10   Responses as to the extent to describing the                                     response of Nigeria to privatization share                                 purchase loan scheme (PSPLS).

4.11   Responses to determine if mismanagement of                         find constitute a problem in the on-going                                      privatization programme.

4.12   Responses to determine if financing the                                            privatization programme a problem to the                                government.

4.13   Responses to determine if share prices are so                         high.

4.14   Responses to determine if there exist other                                       financial problems in the on-gong privatization                           programme.

4.15   Responses to know whether privatization of                                    Nigeria Breweries Plc will be beneficial to the                               country.

4.16   Responses as to know whether privatization is                      one of the best options for development of the                           Nigeria economy.

4.17   Responses as to the prospects of the                                                privatization programme to the economy.

4.18   Responses as to whether privatization will lead to                           efficiency and productivity in Nigeria Breweries                        Plc.

4.19   Chi – Square table hypotheses l

4.20   Chi – Square table hypotheses ll

4.21   Chi – Square table hypotheses lll

 

TABLE OF CONTENTS

i.        Title Page

ii.       Approval Page

iii.      Dedication

iv.      Acknowledgement

v.       Abstract

vi.      List of tables

vii      List of figure

viii.         List of abbreviations.

 

          CHAPTER ONE

INTRODUCTION

1.1     Background of the study

1.2     Statement of the problems

1.3     Objective of the study

1.4     Research question

1.5     Research Hypothesis

1.6     Significance of the study

1.7     Scope and limitations of the study

1.8     Definition of terms

1.9     Organization/Plan for development of the study

          References

          CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1     The concept of privatization

2.2     The inception of privatization in Nigeria

2.3     Rational for privatization

2.4     Regulation framework of privatization in Nigeria.

2.5     Methods of privatization of public enterprises in Nigeria

2.6     The role of government in privatization

2.7     Advantages of privatization

2.8     Disadvantages of privatization

2.9     Problems of successful implementation of privatization         programs in Nigeria.

2.10   Conditions for effective privatization

2.11   Financial problems of privatization programmes in Nigeria.

2.12   Prospects of privatization.

          References.

 

          CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1     Research design

3.2     Area of the study

3.3     Population

3.4     Determination of sample size

3.5     Sampling procedure/techniques

3.6     Types of data used.

3.7     Location of data

3.8     Instrument of data collection

3.9     Techniques of data presentation

3.10   Methods of data analysis

          References

 

          CHAPTER FOUR

DATA DESIGNATION AND ANALYSIS

4.1     Questionnaire presentation and analysis of data collection.

4.2     Test of Hypothesis

4.3            Findings.

 

          CHAPTER FIVE

FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1     Findings

5.2     Recommendations

5.3     Conclusion

5.4     Suggestions for further research.

          BIBLIOGRAPHY

          APPENDIX

 
CHAPTER ONE

 

INTRODUCTION:

1.1     BACKGROUND OF THE STUDY

          The privatization programme of the fist phase was said to benefit many Nigerians who were given the opportunity to purchase shares offered for sale by way of public offer. Subscription of shares during the phase one was largely successful with many public offers. However, there were a large number of Nigerian citizens who due to difficult economic realities in their present time were unable to put aside a few thousand naira required to purchase a small share holding in the enterprises which were offered for sale in the course of the privatization programme.

          Recently, the federal government have come up with a means whereby the low-income earners and rural dwellers will participate in the on-going privatization programme. Today, banks have been instructed to give out loans without collaterals for the purchase of share up to N10,000 worth of shares within each five year period. This is being carried out by privatization share purchase loan scheme (PSPLS) which requires that one registers and later apply for share purchase and repayment on be through divided, cash, conversion of bonuses and right and sale of all or part of their allotments in the secondary market.

          This new development in the privatization programmer early motivated me to carry out a project research on the topic: “The problems and prospects of privatization in Nigeria” using Nigeria Breweries Plc as case study.

          In such direction I am of the opinion that at the end of the work, it will instigate the reader to participate in the on-going privatization programme.

 

1.2     STATEMENT OF THE PROBLEM

          This research work is embarked upon to escertain the financial problems and prospects of privatization in Nigeria using Nigeria Breweries Plc as case study. Nigeria Breweries Plc started operation in the precolonial days with limited share holding of the public recently became one among the public limited companies mapped out for privatization in the countries by the federal government under the commercialization and privatization Act.

          To get the plan achieved, it was discovered that finance poses a great challenge to the successful implementation of privatization in many developing countries especially Nigeria; hence, federal government issued directives to bank to give out loan without stringent condition for the purchase of shares up to N10,000 worth of shares.

 

1.3     OBJECTIVE OF THE STUDY

          The research work is meant to achieve the following objectives:

To find out if lack of funds for the purchase of shares a problem for successful privatization.

To determine if there is limiting problem in the privatization of government enterprises in Nigeria.

To ascertain if there are other financial  problems in on-going privatization  programme.

To ascertain if privatization of government interprises a good option for development in Nigeria.

 


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