Managing the Challenges of Public Enterprises in Nigeria: Commercialization and Privatization Option

The main objective of this study is to examine the managing the challenges of public enterprises in Nigeria: Commercialization and privatization option. The specific objectives of the study were to examine the challenges of public enterprises in Nigeria, the advantages of commercialization and privatization in managing the problems of public enterprises in Nigeria, the problems of commercialization and privatization in Nigeria and the way forward. The study is built on Efficiency theory and Public choice theory. The methodology employed in the study was documentary. Qualitative data were collected from academic journals, newspaper, textbooks, Bureau of Public Enterprises Bulletin, among others. Content analysis was used to analyze data. Findings revealed that the major challenges facing public enterprises include political interference, political instability, high level of corruption and financial mismanagement, poor funding, over-reliance on government subvention and subsidies, poor attitude towards work, among others. It was also shown that commercialization and privatization are the best way of managing the problems of public enterprises in Nigeria as they improve the efficiency of the enterprises. However, the success of commercialization and privatization in Nigeria is marred by some problems which include uncooperative attitude of some government officials, weak market alternatives, poor funding, inadequate of regulatory framework, opposition to privatization, lack of transparency, and insincerity of policy, among others. Based on findings and conclusion, the study recommended that the government should not relent in the use of privatization and commercialization. However, the public choice theory should be adopted in terms of the exercise. Government should retain ownership and control of sectors that provide public goods or that are strategic to the economy (Security, power, health, railway, education, among others). Some of these sectors should be commercialized while sectors that provide private goods should be privatized. In order to solve the promote transparency in the planning and implementation of privatization and commercialization of public enterprises, adequate research or study should be undertaken to examine the operations, function and the success of policy of privatization and commercialization and that the government should ensure proper monitoring and supervision of privatization and commercialization program.