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Home»Document Library»Privatization Policy, Challenges and Prospect(s) for Sustainable Development in Nigeria

Privatization Policy, Challenges and Prospect(s) for Sustainable Development in Nigeria

Library
R Dibie
2004

Summary

How can Nigeria achieve sustainable development in the twenty-first century? This chapter from ‘Agenda Setting and Public Policy in Africa’ explores why privatisation policy in Nigeria has failed and examines future strategies and solutions to the current dilemma. Revitalising public and non-profit organisations and the private sectors of Nigeria is crucial for achieving sustainable development.

A primary task of the policy maker is to identify those policies that have the best prospects for improving social conditions and sustainable development. Since policy problems are usually complex and contextual, future policies should be pragmatic and tailored to the specific circumstances of Nigeria. An appropriate balance needs to be found between the public, private and non-profit sectors in Nigeria’s social development efforts in order to avoid falling into the trap of all-or-no government participation in the development process.

Nigeria’s privatisation policy can be seen as a pragmatic response to the poor performance of the public sector. However, it has so far failed to relieve the government of much of its fiscal burden. This is largely due to:

  • a high level of economic mismanagement
  • waste and corruption
  • low returns on public investments
  • accelerated decline in per capita output and per capita income
  • an emphasis on bureaucratic and managerial values which are not compatible to the social and cultural values of Nigeria.

Continuous political commitment and consistent policy goals are needed to successfully execute the industrialisation policy of Nigeria. External assistance for project funding and strengthening of institutional capacity including training can supplement internal efforts. However, the success of Nigeria’s privatisation policy will ultimately depend on the willingness of Nigerian political leaders to surrender the political and economic patronage powers associated with direct involvement in the production of goods and services to the private sector and non-profit organisations.

  • Reform policies must be politically desirable to the leadership and its constituencies: political benefits should outweigh political costs.
  • Public managers need further training on how privatisation policy might lead to service improvement and sustainable development.
  • Political leaders and public administrators should find a strategy to protect public and citizen interests and ensure measures of equity.
  • The executive, legislative and judicial branches of government and public administrators should be involved in the reform process.
  • Public administration should be broadened to suit local and community-based values of collaboration, consensus and consultation.
  • State-owned enterprise reform must be credible, transparent and legitimate.
  • Public enterprises should be monitored frequently. The managers of poorly performing enterprises should be held responsible.

Source

Dibie, R.,2004, 'Privatization Policy, Challenges and Prospect(s) for Sustainable Development in Nigeria', in Agenda Setting and Public Policy in Africa, ed. K. Kalu, Ashgate Publishers, Aldershot, UK

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