Privatization and the Efficiency of Selected Enterprises in Nigeria

Abstract

The privatization of state companies has grown into a global trend with its origin traced to developed countries. This study investigated privatization and the efficiency of some selected enterprises in Nigeria. The study adopted primary data in which questionnaire were given out to elicit responses in other to achieve the research objective. 74 questionnaire were giving to the head of operations of selected privatized hospitality industries in Nigeria. Multiple linear regression was used in analyzing the data gathered from respondents. Findings from the result of this study indicates that privatization is significant and positively related to efficiency of firms. The study concludes that privatization has significantly influenced the efficiencies of privatized enterprises in Nigeria. The study concluded that privatization enhances the efficiency of privatized enterprises in Nigeria. The study recommends that ownership structure should be structured to provide good incentive process that is beneficial to shareholders. The study further recommends that Privatized firms should be encouraged to allow for more management involvement in decision making process, this will go a long by providing cross fertilization of ideas.