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Privatisation of services

Privatization and enterprise performance in Nigeria: case study of some privatized enterprises

Reducing politically motivated resource allocation and other benefits from privatisation in Nigeria

Authors: A. Jerome
Publisher: African Economic Research Consortium , 2008

Full text of document

This study examinesthe post-privatisation performance of some formerly state-owned enterprises in Nigeria. Comparing data from five years before and five years after privatisation, the study finds significant increases in the following indicators:

  • profitability
  • productive efficiency
  • employment
  • capital investment
  • output
  • prices and taxes
Data envelopment analysis also shows that privatisation has been associated with increasing technical efficiency due to the reduction of politically motivated resource allocation. This has been the principal benefit of privatisation in Nigeria.