AN EVALUATION OF THE EFFECT OF PRIVATIZATION ON THE NIGERIA ECONOMY (A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA)

This research project was carried out in order to find the fort of privatization of public sector on the Nigeria economy. PHCN was chosen as the case study. To that effect, two hypotheses were postulated to be tested so as to accept or reject. They are: the privatization and commercialization have improved the efficiency of the public sector. As such that privatization and commercialization is not responsible for the improved efficiency of the public sector. Data for this research was obtained from primary and secondary sources, and the findings of this research were therefore based on the questionnaires returned. The percentage method of analyzing data was used to analyse the data gathered. Judging from the response and analysing of interview and findings on the researcher recommended that privatization has boosted the efficiency of the public sector and that prove the first hypothesis.

The classic concept of privatization denotes movement from collective or public actions to private control. It may be seen as the process of converting a publicity operated enterprise into privately own and operated entity. When an entity is privatise shares formerly owned by the government, as well as management control are sold to member of the public. Privatisation may also involve the withdrawal of the state from providing a service directly to the public in favour of the private sector. Privatization so understood, is thus a subject of economy liberalization. The major objective of trade liberalization and privatization is to ensure that barriers to economic development are removed.

It also includes the efficient running of enterprise and provision of better services to customers and consequently improvement in the standard of living of the populace.
Privatization is also defined as the transfer for all part of a government investment over to the private sector. This transfer involves both sales of shares and assets.
Originally, privatization was a feature of development countries; they adopt privatization as more at a political policy rather than a economic policy.
    The belief was that the private sector was more effective and efficient in management of asset industries, therefore, the government decides to handover the companies and asset it owns and manage over to the private sector which with its profit oriented motive was expected to perform better in running those companies and asset and hence contribute more economic development of the nation, one this is successful they believed the consolidated with time however, the economic aspect of privatization has dominated the political aspect and today adopted as a major economic reform policy.