1.1 Background To The Study
Privatization has been defined as the returning of public-owned assets to the private sector, with the control of activities been passed from the public sector to the private sector through the issues of shares’ (Ohashi and Roth, 1980 in Anyebe, 2001). Section 14, Decree No 25 of 1988 views Privatization as the transfer of government owned shares in public enterprises to private shareholders, consisting of corporate institution and private individuals. In 1973, NEPA was formed and became operational generating, transmitting and distributing of electricity to all parts of the federation. However with gross deficiency its operations it was privatize when the federal government embarked on power reform in Nigeria in1999. This was con ducted under the Electric Power Sector Reform (EPSR) Act 2005. The Power Sector Reform main objective included the full deregulation of the Electricity Supply, providing adequate supply of electricity generation to consumers, make the sector investor-friendly and discarding NEPA’s monopoly. The Act repealed the law which established NEPA, and led to the formation of the Power Holding Company of Nigeria, (PHCN) charged with the responsibility of providing power supply. It also restructured the power sector from a vertically integrated structure into eighteen unbundled autonomous companies. The Act targeted the liberalization and privatization of the sole power provider-PHCN and brought in Independent Power Producers IPPs. (www.mbendi.com). Mediterranean Journal of Social Sciences(2014)
1.2 Statement of the Problem
The privatization policy was intended to improve electricity generation and enhance effective services delivery through sector friendly prices. However all that was expected has not been fully realized. Instead privatization led to mass retrenchment of staff, increased tariff, and the control of the company by a few elite. Consequently it has led to loss of billions of naira due to corruption in the sector. Consequently the problem confronting the research is to appraise the impact of privatization policy on the performance of public sector organization in Nigeria with a case study of NEPA
1.3 Objectives of the Study
To determine the level of impact of privatization policy on the performance of public sector organization in Nigeria a case study of NEPA
1.4 Research Questions
What is the meaning of privatization?
What is the level of impact of the privatization policy on the performance of public sector organization in Nigeria with a case study of NEPA?
1.5 Significance of the Study
The study shall elucidate on the concept of privatization with a view to determining its impact on public sector organization with a case study of NEPA.
1.6 Research Hypothesis
Ho The impact of the privatization of NEPA is low
Hi The impact of the privatization of NEPA is high
1.7 Scope of the Study
The study focuses on the appraisal of the impact of the privatization policy on the performance of public sector organization a case study of NEPA
1.8 Limitations of the Study
The research was confronted by both geographical and logistic constraint
1.9 Definition of Terms
Privatization defined
PRIVATISATION
Privatization has been defined as the returning of public-owned assets to the private sector, with the control of activities been passed from the public sector
to the private sector through the issues of shares’ (Ohashi and Roth, 1980 in Anyebe, 2001) Section 14, Decree No 25 of 1988 views Privatization as the transfer of government owned shares in public enterprises to private shareholders, consisting of corporate institution and private individuals. I
DIVESTMENT DEFINED
Divestment indicates the transfer of public organizations to private ownership of the enterprise.
DELEGATION
Delegation involves the transfer of the control of government assets or activities to private management and government involvement is constrained mostly to assessment of results. Examples are leases, concession, management contract etc.
DISPLACEMENT
Displacement implies that the state promotes active participation of the private sector in former public activities to expand
DECENTRALISATION
Here decision – making is shifted to other agents that have been operating in accordance with market indicators while state maintains ownership and ultimate control of the enterprises.. It also includes the introduction of private sector ownership and incentives. performance contract is a typical example..(Ojobo,2005).
