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The objectives, which the Federal Government of Nigeria’s privatisation programme is meant to achieve, are numerous and involve, as a basic component, the improvement of economic efficiency. Generally, the programme has four objectives: To achieve higher allocative and productive efficiency,...

Yes, privatisation can and will lead to positive change in the current situation by working to reverse these certain dangerous trends.  As has been noted throughout this document, privatisation is designed to remove government from business and bring in proper...

There were about 590 public enterprises at the end of 2000, of which only 160 were involved in economic activities, generating goods and services. Over 5,000 board appointments are made to man these enterprises, with enormous patronage power given to...

The outcomes have been disappointing and include: Corruption and mismanagement leading to low productivity; Dependence on continued funding from government budgets. Instead of providing any benefits to Nigerians, Nigerians must give up many benefits themselves that can’t be provided by...

Public enterprises, like in other countries, were established with good intentions for the welfare of the people. The overriding reasons for creating public enterprises in Nigeria were to: Make up for a shortage of local capital for expansion and technological...

An initial public offering, or IPO, is the sale of a company’s shares on the stock market for the first time.  As part of Nigeria’s privatisation programme, the sale of shares in IPOs is reserved for Nigerian citizens only, and...

The stock market is an institution where shares (as defined above) are bought and sold.  Shares can be sold as part of daily stock market activity, through share subscriptions and initial public offerings (IPOs).

A core investor sale is defined as the transfer of at least 51% of ownership, accompanied by management control, in a company from government to new private owners.  Core investors may be individuals or firms, Nigerian or foreign, with the...

A share is a portion of a company owned by an individual, a group of individuals, or a firm.  Shares are not always physical pieces of paper as in the old days, since in many companies electronic depositories have been...

Privatisation, in the simplest term, is the transfer of ownership from the government (or public) sector to the private sector.  Privatisation can occur in one of many ways, including core investor sales, share subscription, initial public offers, asset sales, and...