Privatization may be comprehended as a policy made by the government agency to transfer the ownership of its owned enterprises and companies to corporate bodies , in other to ensure maximum utilization of the company or enterprise.
I will give you guys a brief summary of the things that gave rise to what is today known as privatization.
The idea of privatization came to be when government workers and agency begin to show what is known as lackadaisical behavior or attitude in carrying out their functions.
The government thought it wise to relinquish the operation of this enterprise and companies to private individuals.
REASONS FOR PRIVATIZATION.
1.Consumer’s choice: in other to create an opportunity for consumer to make their choices of products they wants to consume.
2.Unproductive industries : Because of the competitiveness of the labor market , the unproductive industries will not withstand the competition.
3.Industrial autonomy: privatization makes for industrial autonomy.
4. To introduces efficient management: Individuals and other bodies are more efficient in the management of enterprise than the government.
MERITS OF PRIVATIZATION.
privatization has helped to revamped Nigeria economy in several ways.
I will mention some of the ways it has helped Nigeria move forward.
I may not explain all , so , I will encourage you all to make research and find their various meaning.
Innovation: since enterprises has been privatized , innovation has been injected into the production and rendering of high quality products and efficient service to the populace.
Efficiency in management
As well as increase in revenue.
At the same time, privatization has done so much harm to our economy.
Lets take a glance at the evils privatization has caused us.
Profit maximization. This simply means that their guiding principle is profit , thereby increasing the cost of goods and services.
At the end the consumers bears and brunt of it all.
It makes income not to be evenly distributed among the people.
As also leads to Reduction in labour force .
Annoyingly, it neglects in consumer’s welfare scheme.
Strike and demonstration are others disadvantages of privatization.