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PRIVATIZATION OF PUBLIC ENTERPRISES AND ITS

IMPLICATION ON ECONOMIC POLICY AND
DEVELOPMENT OF CROSS RIVER STATE.

DEPARTMENT OF BUSINESS ADMINISTRATION

ABSTRACT
The research was on privatization or public enterprise and
its implication in economic policy and development of Cross
River State. Data were collected primarily through the use of
questionnaire and secondarily source through the reviews of
relevant academic materials. The data collected were used to
test the hypothesis and the result of finding revealed that,
there is significant relationship between corruption and
dishonest practice of staff. The study recommended that for
public enterprise to meet the peoples expectations, the
government should play a giant role of pumping more money
into the enterprise the staff must be trained of perform their

responsibilities, corruption must be reduced to its bearest

minimum and management capacities of the government must
be increased through further training and retention of skilled
staff.

CHAPTER ONE
GENERAL INTRODUCTION
1.1 Introduction
Cross River State public enterprises are generally
corporate entities other than ministerial departments they
derive their existence from special statutory instruments and
engage in special business type of activities to provide goods
and services for the overall social economic upliftment of the
citizen these include corporation, authorities, boards and
enterprise so owned and operated (Jerome 1999).
The non-performance of the public enterprise has
prompted series of discussion and policy recommendations on
how best to move them out of their present quagmire. It was

for this quagmire that in 1999, the Cross River State

government instituted sweeping reforms across the various
sector of the state economy where they recognized that public
expectations.
They were conceived to be consuming a large portion of
national resources without discharging the responsibilities
thrust upon them.
1.

That they create economic difference

2.

They incur huge financial resources

3.

They absorb disproportionate share of credit and

especially in the form of foreign loans (Oluade 2007).
While the public remains divergent in their feelings

regarding policy choice and actions the state governments

seems decided, poised and irrevocably committed to the
privatization option towards this end.
A decree was promulgated that is decree No. 25 of 1988
to give practice effects to and set approximate machineries in
motion to privatize some government enterprises.

1.2 The research problem

Privatization programme just like any other of programme
initiated by the state government did not just start.
Privatization programme arose because the defunct public
enterprises had to meet public expectation they were alleged to
be consuming a large portion of national resources hereby
creating economic inefficiencies, incurring huge financial
resources and absorbance of disproportionate share of credit
especially in the form of foreign loans. It could be used
interwovenly with commercialization though privatization
involves the sale of government owned company to private
investors or individuals who now becomes the new owners
changing the way government owned companies operate to
ensure that they run commercially and make profit the existing
differences is their ownership structure.

1.3 Purpose of the study

The primary purpose or aims of the study is to find outs

why government had decide to embark on privatization
programme and their implication in economics policy and
developments in Cross River State. It is worthy of note that the
primary goals of privatization programme is to make the
private sector, the leading engine growth of the Cross River
State economy the government intends to use the privatization
programme to take Cross River State back into the global
economy as a plant form to attracts foreign direct investment
in an open, fair and transparent method.
1.

To send a clear message to local and international

community that a new and transparent Cross River State
is open for business.

2.

To Restructure and revitalize the public sector in order to

substantially reduce the dominance of unproductive
government investment in the sector.

3.

To create jobs, acquire now knowledge, skills and

technology and expose Nigerians to internationals
competition.

4.

To raise funds for financing socially eradicated programme

such as poverty eradicated programme such as poverty
eradication, wealth creation and infrastructure.

1.4 Research questions

This study aims at asking some fundamental questions
which I believe if poverty analyzed will help us to understand
more reasons behind privatization programme in Cross River
State.
These research questions are:
1.

What is privatization?

2.

Why are public enterprises privatized?

3.

Does it have any implication in economic policy and

developments of Cross River State?

4.

Who are the beneficiaries of privatization?

5.

Do you think it should be encouraged?

1.5 Significance of the study

Researchers are usually conducted with a view to

contributing to already existing knowledge and understanding
about a particular discipline.
The opportunity provided by this study will used to
explore the factors that gave rise to privatization of public
enterprises in Cross River State and its implication on economic
policy and development in Cross River State. It is believed that
the study and many suggestion will contribute immensely to
the reasons behind the privatization of publics enterprises its
implications in Economic policy and development in Cross River
State.
Furthermore, this study would endeavor to show that
public enterprises are set up or established to bring upliftments
and elevation in the economic life of the state and citizenry.
Finally, the research may serve as a mark for further
study on the privatization of public enterprises, understand the
problems and proper solution to them.
1.6 Scope of the study

The study covers privatized enterprises government

owned in Cross River State.
1.7 Definitions of relevant terms
It is imperative to give an operational meaning to some of
the words that is used in the study;
i.

Privatization: This means the sale of government

assets or enterprises wholly or partially to privates
investors for effective management.

ii.

Government: This has to do with a group of individual

exercising legitimacy and authority and is also an
institution through which the will of the state is
formulated, expressed and attained.

iii.

Enterprise: Ventures that exist to yield profit and renders

services to people.

iv.

Economy: The state of a country or region in terms of the

production and consumption of goods and services and
the supply of money.

v.

Development: This has to do with concentrated efforts

which are made to facilitate significant increase in
productivity.

vi.

Interview: Refers to meeting of people or persons either

face to face or dialogue with aim of getting information
about an issue.

1.8 Organization of the study

This research work is divided into Five Chapters. The first
chapter represents an overview of the study, significance of the
study, scope of study, definition of some relevant terms and
research question.
The second chapter deals with the theoretical based on
conceptual framework and reviews related literature as will as
the model or theories.
The chapter three talks about research design, data
preparation, instrumentation, validity/reliability of instrument.

Chapter four talks about data presentation, analysis and

the discussion of findings.
Chapter five talks about summary of findings, recommendation
and conclusions.