ECONOMIC REFORM MEASURES IN NIGERIA

The Nigerian economy, over the years, has depended on oil for survival. The public organizations have not been able to live up to expectation. Government spends heavily yearly to ensure these government organizations such as NEPA, NITEL, NRC, etc are productive but they remain inefficient.

Because of this persistent poor performance, the government decided to embark on a national economic reform programme called National Economic Empowerment Development Strategy (NEEDS). At the state level it is called State Economic Empowerment Development Strategy (SEEDS) while at the local government level it is known as Local Economic Empowerment Development Strategy (LEEDS). The key policies of the reform were privatization, deregulation and commercialization.

PRIVATIZATION

Privatization is the process of taking over government business by private sector, businessmen or individuals. The implication is that government ceases to own and control the business instead the private sector or individuals take over the management and control of the business.

REASONS/ADVANTAGES OF PRIVATIZATION

1. To ensure efficiency and good management.
2. To bring about competition necessary for improved service delivery.
3. To provide better welfare package for workers.
4. To curb corruption and wastage.
5. To allow for speedy implementation of policies and decisions.
6. To encourage innovation, creativity and the use of technology.
7. To discourage interference of politicians.
8. To encourage and promote investment.

DISADVANTAGES OF PRIVATIZATION

1. It can lead to increase in prices.
2. It can cause unemployment in the country
3. It can lead to unhealthy competition and rivalry.
4. If not properly checked, it can breed corruption.
5. It promotes exploitation particularly at the early stage.
6. It makes the government redundant.
7. It makes the few rich to get richer.

COMMERCIALIZATION

Commercialization is the management of public or government businesses like private enterprises in order to make profit. Commercialization enables the government enterprises to generate sufficient funds for its operations and also make profit.

REASONS/ADVANTAGES OF COMMERCIALIZATION

1. To promote profitability.
2. To help reduce wastage.
3. To promote accountability in the conduct of business.
4. To reduce government expenditure.
5. To ensure effective provision of services.

DISADVANTAGES OF COMMERCIALIZATION

1. It can lead to increase in prices.
2. The poor may get poorer for inability to pay for services.
3. It can lead to exploitation of the masses.
4. It encourages class system and inequality.
5. Undue government interference can affect productivity.