Category: Article

Privatisation is not an end in itself, but it is a key tool for improving the efficient allocation of resources, for mobilizing investment, and for stimulating private sector development. It is expected to bring about the following benefits: Reduce corruption...

There is clear evidence that public enterprises have contributed to our economic stagnation and poor national image. Public enterprises have: Created economic inefficiency; Consistently incurred financial losses; Absorbed a disproportionate share of credit; Contributed to financial deficits and imbalances; Contributed...

The objectives, which the Federal Government of Nigeria’s privatisation programme is meant to achieve, are numerous and involve, as a basic component, the improvement of economic efficiency. Generally, the programme has four objectives: To achieve higher allocative and productive efficiency,...

Yes, privatisation can and will lead to positive change in the current situation by working to reverse these certain dangerous trends.  As has been noted throughout this document, privatisation is designed to remove government from business and bring in proper...

There were about 590 public enterprises at the end of 2000, of which only 160 were involved in economic activities, generating goods and services. Over 5,000 board appointments are made to man these enterprises, with enormous patronage power given to...

The outcomes have been disappointing and include: Corruption and mismanagement leading to low productivity; Dependence on continued funding from government budgets. Instead of providing any benefits to Nigerians, Nigerians must give up many benefits themselves that can’t be provided by...

Public enterprises, like in other countries, were established with good intentions for the welfare of the people. The overriding reasons for creating public enterprises in Nigeria were to: Make up for a shortage of local capital for expansion and technological...

An initial public offering, or IPO, is the sale of a company’s shares on the stock market for the first time.  As part of Nigeria’s privatisation programme, the sale of shares in IPOs is reserved for Nigerian citizens only, and...

The stock market is an institution where shares (as defined above) are bought and sold.  Shares can be sold as part of daily stock market activity, through share subscriptions and initial public offerings (IPOs).

A core investor sale is defined as the transfer of at least 51% of ownership, accompanied by management control, in a company from government to new private owners.  Core investors may be individuals or firms, Nigerian or foreign, with the...