EFFECTS OF PRIVATIZATION AND COMMERCIALIZATION OF GOVERNMENT OWNED INDUSTRIES IN A DEVELOPING ECONOMY
(A STUDY OF ENUGU STATE ELECTRICITY DISTRIBUTION COMPANY)
ABSTRACT
This study is on the “Privatization of Enugu Electricity Distribution Company (EEDC): Problems and Prospects” and the purpose of carrying out this research work is to assess the impact of public corporation and the problems associated with it. In review of related literature, the researcher finds out some contributions made by some business executives, academicians, scholars as formation and development of EEDC, the Act that establishes EEDC and the form which it has taken since its origin till the present. The effect of Privatization on both individual and the economy of the country were also touched. Problems of Privatization and also possible solutions were recommended. My research design was on secondary data approach in which tables was used in the presentation and analysis of data. Based on the findings of this study, conclusion and recommendations were drawn.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION                                  
Background of the Study                               
Statement of the Problem                             
Objectives of the Study                                 
Objectives of the Study                               
Research Questions                                  
Significance of the Study                             
Scope of the Study                                    
Definition of Terms                        
    CHAPTER TWO    
LITERATURE REVIEW                    
Conceptual Framework                                 
Theoretical Framework                             
Empirical Review                                   
Summary Of Findings                         
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY           
Area of the Study                                 
Population of the Study                           
Sample and Sampling Procedure Technique             
Instrument for Data Collection                     
Validation of the Instrument             
Reliability of the Instrument                         
Method of Data Collection                         
Method of Data Analysis                           
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Presentation and Analysis of Data                       
CHAPTER FIVE
DISCUSSION, RECOMMENDATION AND CONCLUSION
Discussion of Result/Findings                      
Implications of the Research Findings                
Conclusion                               
Recommendations                          
Suggestion for Further Research                   
Limitation of Study                                
REFERENCE
APPENDICES
CHAPTER ONE
INTRODUCTION
Background of the Study
There is no doubt that privation came in the hesitation of the policy of liberization and the advancing for market based reform.  It has also become an important component Globalization. Privatization has since been  endorsed by multi-lateral financial institution as a major plank of adjustment policies , which are being , implemented in a number of developing country including Nigeria of course in development literature privatization has become the linchpin (things that is most important part of  an organization) economic liberalism (Roadman 2010)”. The advocate of privatization believe that it is very effective stage for improving operational efficiency, broaden share ownership, attracting foreign investment and reducing the role of the state in these areas where the private sector  process the capacity  to operate more efficiently and more productivity (Noton, 2012). Several countries in the developed and developing world are increasing privatizing state owned   enterprises. (SOES)  indeed, between 1988 and 1994, developing country sold about 3300 state owned enterprises. The rush towards privatization in developing country most especially, has been attributed to the poor performance of publicly owned enterprises which has been largely managed by the staff. In the 70s, state enterprises where prominent in the extractive industries, utilities and infrastructure such as electricity railway, telecommunication etc.
 In Nigeria unfortunately this enterprises become money guzzling outfit, rely on regular subsidies from government and   survived only on the monopoly status they enjoyed.  Many of them were over staffed and were bally managed All of this deficiency necessitated a rethinking on the roll and structure of publicly owned or state owned enterprises like NEPA. The introduction of SAP in 1986 set the tone for the process of privatization of public enterprises in Nigeria.  In spite of the foregoing justification for privatization, it is important to point out ;that the private s sector in Nigeria as depended  largely on the state for; its survival studies have showed that in terms of investment of productivity activities. The private sector in Nigeria has hardly fared better than the government. The privatize sector according to Obadan has not been able to respond adequately to the country desire for increased production an employment and stable prices (Edukugbo, 2014). It is a sad commentary on the state of the private sector that real investment and production have taken a back seat while service sector activities, speculative activities, distributive trade and foreign exchange deals remain the main focus of private sector. The private sector depends almost exclusively on government patronage and manipulation of government policies for survival. For a country to rely on such a private sector for its economic rejuvenation will amount to economic suicide.
An effective privatization programmed requires the existence of a single private sector, productivity oriented bourgeoisie and not a collection of compradors, speculators, and dealers in foreign currencies that dominate the private sector in Nigeria. The character of the Nigeria private sector and the imperfections that characterize the Nigerian business environment constitute the Achilles heel of the Nigerian privatization exercise. In sample terms: privatization may be defined as the “transfer of ownership and control tights over firms from the public to the private firms from the public to the private sectors”( Edukugbo, 2014). Privatization is however much more complex in practice than is in theory. In embanking on privatization, government ought to critically examine the specific cities of their situations in order to avoid situations where privatization becomes counter productive. The period between 1971 to 1980 was a period described in the history of Nigerian brewery is the period of oil beam, within which tune in coherent application of generated revenue from sale of ;crude oil was made.  The various government both states and the federal established may seat industries in various parts of the country some of these industries are established import so much as such of its raw material imputes from overseas countries (Anyanrouh, 2016).  
The data turn of the Nigerian fortunes which resulted from global oil glut have a great negatives impact on the economic fortunes of the country.  Nigeria being a mass cultural economy and which depend on the revenue from crude oil to finance her then import oriented economy to as much as ask was effected. In 1986, the Nigeria government applied for a loan of 9.3billion from the international monetary funds (IMF) to finance her ceiling country economy.  
In Nigeria, while the oil boom lasted, on one complained of the waste and deficiency of these enterprises rather more enterprises of questionable commercial and financial viability continued to be established. It was only on the wake of the economic recession, which started in 1981 that attention began to be focused on the activities of the public enterprises. The dilemma of the growing contrast between public waste and public thrifts tended to encourage the federal government to seek solution to the problems of the public enterprises through privatization and commercialization. Moreover, privatization has become conditionality for international monetary fund (IMF) and World Bank financial assistance (Adenikinju, 2013).
    Although, the pace of reform of Nigeria’s power sector following the unbundling of PHCN has been slow, renewed impetus has been given to the reform process under vision 20:2020, whereby the energy sector has been assigned a key role in achieving Nigeria’s development goals. It is now the government’s priority to privatize the generation and distribution sectors as part of this reform process. It is an undutiful fact in developing countries like Nigeria in particular. This has been realized that inefficient companies are typically drain on national treasures that they without no doubt contribute greatly to her enormous current debt problem the country is encountering and the huge sum of money invested in the power sector of Nigeria by different government administration.
The aim of this project is to address the effect of privatization and commercialization of government owned industries in a developing economy; a study of EEDC, Enugu.

Statement of Problem
The Nigerian economic environment has been doubted for having the sufficient ground for privatization. Kalejaiye, et al (2013) reveals the continued skepticism of Nigerians about the privatization policy in Nigeria as spearheaded by the Nigerian Labour Congress (NLC). The NLC President, Comrade Abdulwaheed Omar is noted to have reiterated in his 2011 New Year message to Nigerian Workers the opposition to further privatization of public establishments. The NLC President argued that privatization failed to improve the condition of Nigerian workers and the population at large and that due to persistent corruption, insecurity and lack of political will to do what is right, these economic ideas have been sinking the country into anomie a normless state of detachment and perilous disorder.
Indeed, according to the World Bank (2013), “Cost privatization success stories come from high income and middle income countries. Privatization is easier to launch and more likely to produce positive result when the company operates in a competitive market and when the country has a market‐friendly policy environment and a good capacity to regulate. The poorer the country, the longer the odds against privatization producing its anticipated benefits, and the more difficult the process of preparing the terrain for sale.
The global economy has been undergoing series of economic restructuring especially with the crumbling of the socialist economics of the eastern bloc, like Russia, etc (Weekly trust 2016), privatization is now blowing like wind of change, dismantling old economic structures and ideas thereby creating new foundations in the political economic gender of all economies of the world(Nigeria inclusive).
In Nigeria, the problems associated with public enterprise were improper management, waste of resources and the feeling that what belongs to the government belongs to nobody. It comes obvious there after that government could no longer continue to support the monumental waste and inefficiencies of the public enterprises. It is clear therefore, that the reason behind the inefficiencies of the public enterprises shows in a notion that “when the government owns, nobody owns and when nobody owns, nobody cares.” All these inefficiencies did not allow the public enterprises to grow and as such, they have been operating at a loss which is always charged against the public treasury.
However, it has been argued that the Nigerian privatization and commercialization exercise is not accompanied or preceded by an articulated and property phased public sector reform and it will therefore not result in more efficient production of public goods, nor will it make any significant positive impact to fiscal balance (Amadi, 2013).

Objectives of the Study
The general objectives of the study is effect of privatization and commercialization of government owned industries in a developing economy; a study of EEDC, Enugu. The specific objective were to:
1.    To determines the effectiveness of privatization and commercialization in a developing economy.
2.    To determine the effect privatization and commercialization has created in Nigerian economy.
3.    To help differentiate the state monopoly and private monopoly as it affects privatization and commercialization.
4.    To examine if privatization or commercialization of EEDC, Enugu will encourage better services.
Research Questions
The following research questions were drafted from the objective of the study:
1.    What is the extent of effectiveness of privatization and commercialization in a developing economy?
2.    What effect have privatization and commercialization created in Nigerian economy?
3.    What is the extent of monopoly and private monopoly as it affects privatization and commercialization?
4.    Whether privatization or commercialization of EEDC, Enugu will encourage better services?
Scope of the Study
The study is focused on effect of privatization and commercialization of government owned industries in a developing economy. The study area is Enugu State Electrify Distribution Company (EEDC), Enugu Branch.
Significance of the Study
The significance of this research work is that its application will be of immense use to the ministry of power sector and those concerned in realizing the dangers and the possibility of success in privatizing the power holding company of Nigeria.
The project will also be of immeasurable benefit to the following people.
•    Policy Makers:    The study will be of immense benefit to policy makers who may be interested in formulating policy and prgrammes in agriculture and other related areas.
•    General Public:     It is also significant to the general public who may discover what privatization of power holding company can do to change their standard of living.
•    Researchers: It is also beneficial to other researchers. This will thus provide source for other researchers on the same and related topics. Furthermore, this study will serve a means of grapping most of the inherent problems effectively as well as, students conducting related research work on the same or similar ones.
•    Government:    This study will also be of immense benefit to the government, non-governmental organization, and private/public enterprise at different levels.
•    EEDC:    It is as well hoped that this research work will help enlighten the staff and management of Enugu Electricity Distribution Company (EEDC).

Operational Definition of Terms
The following terms are used in this study and they are used in the following contexts
•    Privatization: This is the sale of formerly public enterprises to private individuals or companies.
•    Efficiency: This is the achievement of the required result with a minimum resource.
•    Productivity: This is the measure of performance through efficiency and effectiveness.
•    Populace: People in general that are considered as a whole.
•    Holistic: The organic or functional relations between parts and the whole.
•    Prospects: The possibility of future success.
•    Commercialization: the reorganization of enterprises wholly and partly owned by the government in which such commercialized enterprises shall operate as profit‐making ventures and without subvention from government.
•    Denationalization: is the opposite of nationalization and was christened privatization. The World bank calls it divestment. It simply means the sales of public enterprises or assets.