CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND TO THE STUDY
    Essentially, privatization can be viewed as a systematic and programme withdrawer of government from these business or activities which private individual or companies can perform more effectively and efficiently than government agencies or business organization. In other words, privatization is most commonly defined as the transfer of government industries to the private sector, implying that the predominant share in ownership of asset of transfer lies, with private shareholders.
However in view of the lack luster performance of public enterprises in Nigeria and the limited scope of the private sector participation in some keys enterprises government seek to the higher to ugly tried by encouraging increase private sector participation. The strategy for achieving this object is the privatization appeals to the most prevalent and important to our nation economy. The purpose of this research work is to evaluate both positive and negative implication in privatization all government parastatal and moreover, to provide corrective measure. However, the implication of privatization in Nigeria lies with reference to decree No 25 1988 (amended 1999) which provides the legal backing for the technical committee of privatization, and thus began the major paradigm shift in the conceptualization, of public enterprises in Nigeria. This study however discoursed that only a few successful enterprises such as flour mill, African petroleum, national oil and chemical company limited where partially privatized the commercialization of enterprises such as NEPA, NITEL and NNPC.
    Hardly show any significant improvement in their operation and economic performance, the project shows that employment levels were affected by privatization. Between 1989 and 1993 the public sector accounted for more job losses than privatize companied privatized sector still have lower employment level. The sharp increase in price between 1984 and 1992 did not create sufficient increment is gross earnings for 1994, but the result reveals that a reduction in public sector would haven effect (at least in the short time) an prices. Result show that privatization has or resources utilization. Higher to capital employment ratio has not been affected and this also reveals that price increase in excess of 20% accursed immediately after privatization. However, are gone for good. It is one this rate that the study that privatization is the most appropriate economic recipe to achieve the much desired human development and good government.
1.2    STATEMENT OF THE PROBLEM
    The statement of the problem for this research work is theoretically evaluates the problem facing government parastatals. Among this problems are:
-    Unsatisfactory service because of their erratic supply (e.g. and water supply is irregular).
-    Corruption and his management leading to law productivity.
-    Dependence on continue finding from government revenue
-    Inequity in income and wealth distribution
-    Poor services, arrogance/insensitivity to customers. All these and other were against business or companies privatization concept and practice.
1.3    OBJECTIVES OF THE STUDY
With the seemingly increasing economic hardships face by the Nigeria working class particularly, those in the public employment increased pay and better conditions of services are of paramount importance to them, the major objective of the study therefore are:
i.    To examine the implication of privatization of government parastatals in the Africa petroleum Plc, Ilorin.
ii.    To investigates the constraint, inadequate and discrepancies in the labour management relations corporation.
iii.    To contribute to the resolution of the discrepancies and inadequate issues in the course of the study.
1.4    SIGNIFICANCE OF THE STUDY
    The importance of this study can be streamlined to the public company and researcher.
i.    To the public: This study will help the target to enjoy services provided or rendered by Africa petroleum Plc and thereby improving consumers standard of living.   
ii.    To the company: It will help the industries to evaluate areas of problem and provided them with corrective measure. It will also increase their sales volume and productivity level and also enable them to gain larger market share. It will also help the industries on hail t o deliver maximum satisfactory to their target market.
iii.    To the researcher: It will improve and update the knowledge of the researchers.
    It will help the researcher to acquire HND certificate in partial fulfillment of the requirement for the award of higher national diploma and it will also help the researchers or exposes the researcher to a simplest ways of findings solution to a problem.