CHAPTER ONE
1.1    INTRODUCTION
    Recently, the mismanagement of our parastatals has been a subject of debate. The inefficient utilization of resources and financial mismanagement of most of public sector enterprises over the years resulted into a very weak economic balance sheet, excessive debts incurring and in most cases negative network.
    In addition, the fact that the insolent performance of the state in administration of public business establishment creates a situation in which national funds that could have been used or spent to generate new economic activities and employment opportunities are being used to subsidize “dead wood that will never grow nor change” as analogy for the public enterprises.
    Taking survey of the phenomenon of privatization and commercialization has also been extend to garbage collection, bore-hole drilling, air traffic control and likes many other countries like Britain, USA, Spain, Italy are also involved in various degrees in the process of privatization and commercialization and this is not so exceptional case with Nigeria.
    Privatization and commercialization is seen to many observes as a situation to our economic predicament. The debate in privatization has been on the presumed efficiency of the private sector vis-à-vis the public enterprises and how the latter can be made more responsive to market forces and signs. It has been realized that inefficient companies are typical drain on national treasures and that they contribute greatly to the enormous current debt problems.
    Thus, if efficiency can be elevated in relating to profitability cost saving and consumer satisfaction and the liks. Do we consider privatization and commercialization to be the solution and to what proportion should factors of production and distribution be held by the state private individuals.
    As government could no longer continue to support the monumental waste and inefficient of these public enterprises, the programme of privatization and commercialization was developed to address our peculiar socio-economic and political condition.
1.2    STATEMENT OF PROBLEMS
    A research in Nigeria into over 127 public companies and corporation as at the end of 1990 showed that the return of government N36 billion invested was not encouraging. At today replacement costs, they are probably worth about N200 million as stated by our former present, Gen Abubakar (rtd). Appraising the system, the former head of state said “is clearly unsustainable and injustivable in a period of dividing financial resources”.
    Among the problems encountered by the process of privatization and commercialization includes;
-    Problem of over supervision of parastatals by the supervising ministries is government able to grant enough freedom of action to the state owner establishment.
-    Problem of subjective criteria in appointment of executive of parastatals. Are chief executive and principal functioning of parastatals appointed because of their integrity and capability to deliver and not because of nepotism.
-    Problem of political interference in considering the problem of our parastatals will government inference not create chances for political meedle someness and large scale competition, retention of redundant staff, prostitution of disciplinary procedure by ethnocentric considerations, award and inflating frivolous contracts, appointment of board members and employee that do not possess the relevant knowledge and experience? Will all these the relevant factors not erode the efficiency, effectiveness and productivity of public business enterprises? All these shall be looked into in the course of study.
1.3    OBJECTIVE OF STUDY
    A company’s or corporation’s main objective is profit realization. This objective of prompt making ca not be achieved when the company or corporation in question is being operate at a loss. Privatization and commercialization of public enterprises is not an end itself nor is it a panacea for the ills of the public enterprises.
    To this, the following are the objectives of the study.
i.    To restructure and rationalize the public sector in order to lesser the dominance of unproductive  investment in the sector.
ii.    To increase efficiency of government-owned enterprises.
iii.    To ensure positive returns on pubic sector investment in commercialization enterprises.
iv.    To check the present absolute dependence of commercialization oriented parastatals on the treasury for funding and to encourage their approval to the Nigeria capital market.
v.    Increased competition that is capable of leading to improve efficiency.
vi.    Development of under business relations
vii.    Creating favourable investment climate for both local and foreign investors.
viii.    Re-definition of organizational objectives and implementation of its policies.