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ORLU, DAGOGO CORNELIUS REG. NO: PG/MBA/08/47300
PG/M. Sc/09/51723
THE PROBLEM ON PRIVATIZATION OF FEDERAL PARASTATALS
IN NIGERIA, A STUDY OF NIGERIAN TELECOMMUNICATIONS LIMITED (NITEL) AND ITS SUBSIDIARY, NIGERIA MOBILE
TELECOMMUNICATIONS LIMITED (M-TEL)
MANAGMENT
A THESIS SUBMITTED TO THE DEPARTMENT OF MANAGEMENT, FACULTY OF
BUSINESS ADMINISTRATION, UNIVERSITY OF NIGERIA ENUGU CAMPUS
Webmaster
Digitally Signed by Webmaster’s Name
DN : CN = Webmaster’s name O= University of Nigeria, Nsukka
OU = Innovation Centre
APRIL, 2010
ii
THE PROBLEM ON PRIVATIZATION OF FEDERAL PARASTATALS IN NIGERIA, A STUDY
OF NIGERIAN TELECOMMUNICATIONS LIMITED (NITEL) AND ITS SUBSIDIARY,
NIGERIA MOBILE TELECOMMUNICATIONS LIMITED (M-TEL)
BY ORLU, DAGOGO CORNELIUS
REG. NO: PG/MBA/08/47300
BEING A DISSERTATION PRESENTED TO THE FACULTY OF BUSINESS ADMINISTRATION, UNIVERSITY OF NIGERIA, IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION (MBA) IN MANAGEMENT
APRIL, 2010.
iii
CERTIFICATION
This is to certify this study: PROBLEMS ON PRIVATIZATION OF
FEDERAL PARASTATALS IN NIGERIA; a study of NITEL AND ITS
SUBSIDIARY M-TEL, carried out by Orlu Dagogo Cornelius
PG/MBA/08/473000 under supervision, has satisfied the necessary
requirements for the award of Master of Business Administration
(MBA) degree in Management, University of Nigeria.
By
ORLU DAGOGO CORNELIUS
Chief J.A. Ezeh Date Project Supervisor C.O. Chukwu Date Head, Department of Management
iv
v
ACKNOWLEDGEMENTS
The process of preparing this work was not an easy task.
Nonetheless, some people contributed both financially, morally and
socially towards its executions.
First, I thank the Almighty God for His grace, mercy, love and
kindness and more importantly for protecting me from all kinds of
problems during the strenuous period of the study.
My supervisor, Chief J.A. Eze who read the work and made inputs
of immeasurable value, whose advise, patience and understanding
obviously made for assiduous exploration. To him, I owe a lot of
gratitude.
My gratitude also goes to my Head of Department, C.O. Chukwu
and to all lecturers in Management Department in particular and
Business Administration in general.
The financial burden of this work as well as my education have
been fully borne by me through dedication, determination and above
all, the grace of God.
Also, my profound gratitude goes to Mr. Dakoru Wenika, Miss
Okoli Nwakego and my entire family who aided me socially and morally
for the completion of this programme.
And finally to my colleagues in the graduate school; Okoli Charity
N., Johnson Omi, Emmanuel Obijuru. Thank you for your supports at
various times.
vi
ABSTRACT
The research work is aimed at studying the problems of privatization of
Federal Parastatals with particular reference to NITEL and its subsidiary M-
Tel. Many African countries including Nigeria embarked upon the
establishment of Public Enterprises, managed and controlled by the
government of each country. However, the problems of insufficient
enterprise autonomy, defective capital structures resulting in heavy
dependence on the national treasury for operational purposes, and
economic depression of the nation, called for privatization of these public
enterprises as a measure of reform to avoid total collapse of the system
and grounding of the economy. Hence Privatization is a tool or reform for
economic management of modern industrial economy.The objective of the
study is to examine the reasons and basis for privatization, the effects, the
types and problems of privatization of federal parastatals in Nigeria. The
population of the study was made up of disengaged and retained staff of
both NITEL and M-Tel in Rivers and Enugu States respectively. The sample
size was determined using Yamani’s formular and Chi-square for testing of
hypotheses. The survey research method was adopted in eliciting data
from respondents for this study. The major findings are that, privatization
exercises in Nigeria are prone to self inflicted complications, lack of
transparency due to corruption that has remained the omnipresent
obstacle that erodes every exercise in Nigeria. In meeting the above
findings, the recommendations proposed for privatization exercise in
Nigeria are; The privatization exercise should ensure the evolution and
development of a near perfect policy, economic reformation and
restructuring of Nigeria’s political economy. Finally, the federal government
should have a proper labour policy to resolve terminal benefits matters in
collective bargaining.
vii
THE PROBLEM ON PRIVATIZATION OF FEDERAL
PARASTATALS IN NIGERIA, A STUDY OF NIGERIAN
TELECOMMUNICATIONS LIMITED (NITEL) AND ITS
SUBSIDIARY, NIGERIA MOBILE TELECOMMUNICATIONS
LIMITED (M-TEL)
BY ORLU, DAGOGO CORNELIUS REG. NO: PG/MBA/08/47300
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA ENUGU CAMPUS
APRIL, 2010.
viii
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The federal government of Nigeria embarked on political,
constitutional, banking, pension and economic reforms having sensed
the economic depression of the nation. Privatization is one of the
pivots of the economic reforms which the former (President Olusegun
Obasanjo) was committed to during his tenure of democratic
governance in Nigeria.
The economic depression with its deep and severe
consequences coupled with the revolution in the union of soviet
socialist Republic (USSR) in the late 1930 led to a situation where
government dabbled into running enterprises it had no business in.
This became possible because private sector enterprises especially in
Western Europe collapsed due to recession.
Upon the attainment of independence, many African countries
embarked on the establishment of public enterprises. At
independence in 1960, Nigeria’s economy had a week industrial
sector with near absence of basic infrastructure, inadequate capital
and weak technological base. The public enterprises were established
because the then economy was that of an agricultural sector
producing largely primary products for exports.
The oil boom of the 1970s helped the government to enter into
ownership and control of economic activities. In view of this, the
ix
provisions of Telecommunications facilities in the country which was
restricted mainly to government business, enforcement of law and
order and administration of the country prior to independence,
became no longer restricted after independence because of
development of trade, commerce, industries and private enterprises
which commenced at a fast rate and required such services.
However since independence, there has been a number of
development plans for the expansion and modernization of
Telecommunications Network Services.
Under the first development plan, a total of 100,000 telephone
services were installed besides other improvements like provision of
large capacity cross-bar exchanges at Ikeja and Lagos Main land
respectively. Constructions of radio routes to link 23 urban cities in
the country including Ibaban, Kaduna, Sokoto, Kano, Jos, Maiduguri,
Warri, Calabar among others and trunk dialing at urban centers were
in progress. The implementation of this programme was dis-rupted
by the civil war (1966 – 1969). At the end of civil war, the status of
the first P & T (Post and Telecommunication) plan (1963 – 1968) was
reviewed and the second national plant was launched in 1970. This
enabled the government to improve on the existing
telecommunications facilities by marginal investment in major and
industrial areas and gradually extended to some rural and war
affected areas.
However, in order to correct some problems in the system,
government under the contingency plan in 1977 increased telephone
x
lines to 167,000 representing telephone density in the country to
approximately 3 per 1000 population. In addition, the communication
Ministry had a long-term plan for improvement of telecommunication
facilities within the context of the 3rd development plan (1975 –
1980) under which the new modern telephone exchanges with
additional 84,000 lines were provided. At the end of this development
plan in 1985, the year that marked the birth of NITEL Ltd, only
207,276 telephone lines and 500 Telex lines were introduced into the
network, thus bringing a total telephone lines in the system to
220,000.
But with the quest for effective and efficient communications
services, Global System for Mobile Telecommunication was introduce
to alleviate the problems being encountered under NITEL. Hence
prior to the emergence of this Global System for Mobile
Telecommunications (GSM) in the year 2001, the Analogue system
(090) was the only mobile cellular telephone in Nigeria which was
introduced in 1992 and its operation was under the supervision of
NITEL, the then leading and dominant operator.
Hence with the creation of M-tel in 1996, the responsibility of
providing (090) services was shifted to M-tel which was basically a
subsidiary to NITEL but operates independently of NITEL.
Ironically, inspite of the huge investments in public enterprises
in Nigeria, their services could not meet the demand of the populace.
During the oil boom of the 1970s, nobody complained but with the
dwindling of government revenue and global crisis, it became
xi
imperative to remove those policies that fostered and encouraged the
dominance of the public sector in the Nations economic life.
The establishment of parastatals is a popular strategy used in
developing Nations for notable reasons which includes; economic
leadership, national security, social welfare, profit motives, effective
control of resources, De-bureacratic efficiency etc.
There are pertinent factors that account for the poor
performance of these parastatals despite huge investment. According
to Okeke (1985), such factors are lack of accountability, lack of profit
motives, monopoly, over staffing, indiscipline, lack of coordination of
staff level and partly politics.
Other factors recorded by Mbanefo (1985) were failure to
conflict objective, not flexible decision making, excessive wastage of
resources, underutilization of assets, low activity, motivation, poor
attitude to work and company affairs.
Hayafu Deen (1985) also believes that over extended and
cumbersome organizational structure, recruitments based on
extraneous consideration instead of merits, no concrete performance
target, parastatals used as vehicle for political patronages etc are
some militating problems.
1.2 STATEMENT OF THE PROBLEM
We recognized that parastatals like Nigerian
Telecommunications Limited (NITEL) and its subsidiary Nigerian
Mobile Telecommunications Limited (M-TEL), Power Holding
xii
Company of Nigeria (PHCN), Nigerian Ports Authority (NPA), etc,
occupied a pivotal position in the search for the Nation’s speedy
economic development and self sufficiency. The Nation’s inability to
achieve its development goals was partly as a result of the problems
of these parastatals.
Some of these problems are thus:
- Mismanagement of funds
- Heavy dependence on the national treasury for operational
purposes as a result of defective capital
- Mis use of power resulting in corruption and bureaucratic
bottleneck
The non-prevention of these long-lasting problems had indicated
negatively on the nation’s economic performance.
Since the first privatization of NITEL and M-Tel to Transnational
Corporation of Nigeria Plc (Transcorp) had failed, the second phase
of the privatization exercise already on ground should address the
problems of effective privatization. In addition, the possible
privatization malpractices of the first indigenization exercise should
serve as safety belt for the implementation of privatization policy.
Some of these malpractices include;
- Few privileged people buying up most of the shares.
- Partial privatization and not full (total) privatization thereby
creating rooms for government and political intervention.
xiii
- The Chief Executive Officers and Managing Directors were
not appointed on merit but on political benefits.
The research work attempts to examine the problem of the
institutional framework for the guided privatization in terms of
government transparency. It will attempt to restate the importance of
the valuation of assets and investment in NITEL and M-TEL through
the Bureau for public Enterprises (BPE).
Since the Nigeria factor has been a major set back in the
implementation of many laudable economic and political policies
geared towards national development, this research would attempt to
examine the success story of NITEL and M-TEL privatization in
Nigeria. It will also examine the responses from people on the
problem of economic activities of the nation.
1.3 OBJECTIVE OF THE STUDY
The objective of the study are as follows:
i. To examine the problems of privatizing federal parastatals in
the country.
ii. To examine the institution frame work guiding effective
privatization in terms of government transparency
iii. To examine the effect of privatization on the labour market
and employees of such parastatals.
xiv
iv. To examine the type of privatization adopted by the
government and her agencies that will suit the aspiration of
the citizenry.
v. To ascertain the faith of the retained staff of the parastatals
after privatization.
1.4 RESEARCH QUESTIONS
The research questions for this study are as follows:
i. What are the problems on privatizing federal parastatals in
the country?
ii. What are the institutional frame work guiding privatizations
in terns of government transparency?
iii. What are the effects of privatization on the labour market
and employees of the affected parastatals before and after
the privatization?
iv. What type of privatization exercise was adopted by the
federal government and her agencies and how was it
accepted by the citizenry?
v. To what extent does the faith of the retained staff of the
privatized parastatals be guaranteed in terms prompt
payment of salary/allowance and out right dismissed for
flimsy reason?
HYPOTHESES
xv
For the purpose of this study, the following assumptions will be
subjected to critical text.
Hypothesis 1
Ho: There is positive correlation between privatization of federal
parastatals and associated problems
Hi: There is no positive correlation between privatization of federal
parastatals and associated problems.
Hypotheses 2
Ho: The privatization exercise is not directly related to the due
process as such lacks transparency.
Hi: The privatization exercise is directly related to the due process
as such does not lack transparency.
Hypotheses 3
Ho: The privatization has negative effect on the labor market as
well as the employees.
Hi: The privatization has positive effect on the labour market as
well as the employees.
Hypotheses 4
H0: Ownership of the company partly by the federal government
and partly by the private sector (partial privatization) is not the
aspiration of the citizenry.
xvi
Hi: Ownership of the company partly by the federal government
and partly by the private sector (partial privatization) is the
wish of the people.
Hypotheses 5
H0: The retained staff of the company are not well taken care of
after privatization
Hi: The retained staff of the company are well taken care of after
privatization.
1.5 SIGNIFICANCE OF THE STUDY
The significance of the study can be viewed from the major
standpoints: Practical and academic
(a) Practical Significance
This kind of study will assist in broadening understanding of the
followings:
- To employees of paratatals in general, it will expose the
relationship existing between them and their employers,
which will be of interest to them in their respective
paratatals.
- Specifically to retained staff of NITEL and M-TEL understudy;
it will expose to a large extent the going-on in this
xvii
organizations with regards to the relevant variables and
comparative analysis of government actions over some
relevant years.
- To policy makers and regulators like BPE; it will present
through its analysis that could assist them in enunciating
polices that will not only have positive impact but also to
remain relevant in the policy by performing such functions
as proper guide lines for privatization and employees safety
and protection in such manifestation.
(b) Academic Significance
(i) It will contribute to the enrichment of the literature on
privatization and its associated problems.
(ii) It will support ways (of interest to academics) based on the
empirical evidence of enhancing the employment situation
rather than out rightly lay off staff on the pretence of
privatization which affects the economy.
(iii) The study will serve as a body of reserved knowledge to be
preferred to by researchers.
1.6 SCOPE AND LIMITATION OF THE STUDY
In researching the topic “Problem on Privatization of federal
parastatals in Nigeria”, the researcher focused on strategies and due
process used by the federal government and Bureau for public
xviii
enterprises in privatizing NITEL and M-TEL. However, the
privatization exercise is still in its infancy in Nigeria as such, detailed
information on this study is lacking which makes the study difficult to
adequately access the outcome of the exercise.
In addition, the researcher does not claim to have identified all
parameters used in the privatization exercise. This is as a result of
some limitations which includes; time constraints, financial
constraints and data constraints.
1.7 DEFINITION OF TERMS
NITEL: Nigerian Telecommunication Limited
M-TEL: Nigerian Mobile Telecommunication Limited
GSM: Global System for Mobile Communication
BPE: Bureau for Public Enterprises
Transcop: Transitional Corporation of Nigeria Plc.
Privatization: Removing the government ownership of an
organization to the private sector. (Comas C.D
2005;20): The Pain and Gain of privatization.
xix
REFERENCES
Abdulkadun B. I.(1992) The multifunction telephone system. NITEL
Journal Vol. 8 January/February 19
Okeke, C. O. (1983:2-3) Restructuring the Nigerian Economy; “The
place of privatization”, paper presented at the National Seminar
on Privatization organized by the securities and exchange
commission, Kanno.
xx
M-Tel Journal July (2003), M-Tel news Vol.1, No. 2 .
Mbanefor, A.C.I (1985:1-4) capital restructuring for successful
privatization organized by the securities and exchange
commission, Kano.
Schellerberger, R. E.(1969:55-111) “Management Managerial Analysis
(Homewood Illinois), Richard D-Irwin.
Hayatu Deen (1985:1-3); “Performance Contract tools for public
enterprises reform and restructuring” Paper presented at the
National Workshop on the commercialization programme
organized by TCP on April, 1985.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 INTRODUCTION
xxi
This chapter will essentially deal on various types of opinion
expressed by different authors and researchers on federal
government privatization exercises, achievements, problems and
plans for future improvement. However, the chapter will in a proper
perspective examine the view of authors on problems of privatization
as it affects federal parastatals
2.2 THEORETICAL REVIEW OF THE STUDY
Privatization has been an important instrument of economic
development since 1970s and has been at the forefront of economic
policy of many countries, both developed and developing countries.
Cook and Kirkpatric, 1988; “The policy objectives and motives
for privatization varied between countries and have altered with
times. In the case of the industrialized countries, in the early 1980s it
could be argued that the dominant motive was an ideological one,
with issues of economic efficiency assuming a significantly less
important role.
For developing countries, the public enterprises were looked
upon for provision of utilities such as electricity, water, transportation
etc. The public enterprises were seen as an important contributory
factor of economic development as such, government financial
support for the enterprises increased for social services are relegated
to the background the development of the private sector. In late
1970s, Public Enterprises accounted for one third of all international
borrowing by developing countries and it was a source of concern
(World Bank 1980).
xxii
In the ex- socialist countries, privatization had been seen as an
important factor in the process of transition from a centrally planned
to market oriented economy. While in the highly, centralized state in
Eastern Europe and former Soviet Union, where the states sector has
accounted for Gross Domestic Product (GDP), privatization has been
seen as a means of creating a private sector economy. (Schwartz,
1993)
2.3 PROBLEMS OF THE PARASTATALS
Inspite of huge investments in government parastatals, their
services could not meet the demand of the people. The reason for
the establishment of these parastatals were not adequately achieved
due to lack of accountability, lack of profit motives, over staffing,
indiscipline, lack of co-ordination of staff level and partly politics
(Okeke, 1983).
Other problems include; failure to conflict objectives, not
flexible in decision making, excessive wastage of resources, under-
utilization of assets, no appropriate capital structure, purposeless
attitude to work and to company affairs (Mbanefo, 1985).
Further problems include; over extended and cumbersome
organizational structure, recruitments based on extraneous
consideration instead of merit, no concrete performance target,
parastatals used as vehicles for political patronage etc (Hayatu Deen,
1985)
xxiii
2.4 COMPETITION (MONOPOLY BROKEN): A properly
implemented programme has the potential to promote productivity
and profitability through the exposure of the parastatals to
commercial discipline of the market.
Competition is already hutting up with NITEL and its subsidiary
MTEL with other telecommunication providers such as Reltel, MTN,
GLO, ZAIN, STARCOM etc. Diversified range of products now dots the
lines in paid adverts by these new entrants. It is expected that very
soon service provision and delivery will be at door posts of customers
and purchase of line and Sim cards will soon be over.
Chisnall Peter M. (1989) stated that nearly every market can be
divided into several sub-markets which have significant
characteristics affecting demand sand supply. Instead of treating all
customers the same way by offering identical range of products and
levels of services, objective market research enables groups or
clusters of customers or high net worth customers to be identified
whose needs can be more adequately met through specific marketing
attention. Telecommunication services have wide variety of products.
There is the need to identified corporate customers, high net worth
customers, rural customers and specialized agencies in order to meet
their specific needs adequately.
The customers of telecommunication services were in great
expectation for the privatization of NITEL and its subsidiary M-Tel
despite the competitive nature of the market in order to benefit from
the followings:
xxiv
Injection of efficiency in the telecommunication services
provision.
Deregulation and healthy competition
Removal of monopoly
Attraction of private and foreign capital
Reduction in the need of government subvention and control
Growth and development in the economy
Availability of services for potential subscribers.
New technology and equipment.
2.5 POLITICAL DEFINITION OF PRIVATIZATION
The term privatization did not gain wide circulation in politics
until the late 1770s and early 1980s. With the rise of conservative
government in Great Britain, United States and France, privatization
has come primarily to mean two things.
Any shift of activities or functions from the state to the
private sector and more especially;
Any shift of the production of good and services from the
public to private.
Besides directly producing services, government establish the
legal frame work of societies and regulate social and economic life,
and finance services that are privately produced and consumed.
Shift from publicly to produced services may result not only
from a deliberate government action, such as sale of assets, but also
from the choices of individuals or firms that a government is un-
xxv
willing or un-able to satisfy or control. In Nigeria and most other
countries, private demand for education, health care, retirement
income has out stripped public provision. As a result, private
schooling, medical care and pensions have grown to relatively larger
proportions.
If one shifts attention from the sphere of production to the
sphere of consumption, one may alternatively define privatization as
the substitution of private goods for public goods. A public good in
the economics sense, has two distinguished properties.
One person’s consumption does not preclude another’s, and
excluding any one from consumption is costly if not impossible.
A prototype example is fresh air. A public good need not be produced
by government.
These forms of privatization vary in the extent to which they
move ownership, finance and accountability out of the public sector.
The spectrum of alternatives runs from total privatization (as in
government disengagement from some policy domain) to partial
privatization (Contracting out or vouchers). This is typical of Nigeria
Telecommunications Limited (NITEL) and its subsidiary Nigeria Mobile
Limited (M-TEL), where the government partially privatized these
paratatals to the Transnational Corporation of Nigeria PLC
(Transcorp) in 2006 with the share percentage of 51% to Transcorp
and 49% to the government.
The implication of partial privatization vary with its degree as it
affects NITEL and M-Tel. In this case, the government may continue
xxvi
to own but not to manage assets. It is easy to treat privatization
purely as a question of domestic policy. But where the likely buyers
are foreigners, privatization of state-owned enterprises often means
denationalization, a transfer of control to foreign investors or
managers. Since state ownership often originally came about in an
act of national self assertion, privatization appears to be a retreat in
the face of international presence. This was the obvious reason why
NITEL and M-TEL were partially privatized to an indigenous company
called Transcorp under the leadership of present Olusegun Obasanjo.
2.6 FORMS (TYPES) OF PRIVATIZATION
Though, privatization is an arrangement which brings about
change in the ownership structure from the public to private hands.
It involves the private participation in the management and operation
of public enterprises. It is the vehicle for restructuring public
enterprises, de-regulation and major economics reforms. If attracts
foreign capital investment through core foreign investors, foreign
equity participation and injection of new technology.
There are two basic types or forms of privatization;
Full privatization
Partial privatization.
2.6.1 FULL PRIVATIZATION:
This is a privatization aims at achieving efficiency, increase
productivity, economic growth, enhances per capital income and
standard of living. Full privatization entails a carefully planned and
systemically implemented programmes of government by way of with
xxvii
drawal of full control of business enterprises in order to be effectively
and efficiently ran by the private operator it has fully handed over
ownership to.
Professionals, policy makers and economic planners alike, tend
to hold the view that the full privatization policy, guided or unguided
can yield substantial benefits, in terms of greater efficiency, renewed
investment, budgeting savings and the preservation of public finance
(Obadan and Ayodele, 1998).
2.6.2 PARTIAL PRIVATIZATION:
Partial privatization in the context of guided privatization is
explained as government carefully planned and systemically
implemented programme of government partial with-drawal from the
control of business enterprises which can be more effectively and
efficiently run by the private operators.
It was evidenced from the research conducted that NITEL and
its subsidiary M-TEL were partially privatized. This shows that the
federal government has 49% shares while Transcorp has 51%
shares. This affected the operation of the company as such not fully
autonomous. The structure and the objective of the company are not
fully adhered and the objective of the company are not fully adhered
to due to government influence. This resulted into un-precedented
restructuring of the organization with better unachieved theoretical
promises to move the company forward.
Therefore, it is proper at this point to say that the management
of NITEL and its subsidiary M-TEL were confused on whom to serve
xxviii
(either Transcorp or Federal government). Partial privatization does
not conform with the principles of “Unity of Command” where the
subordinate must receive instructions from one boss only. As the
saying goes, “You cannot serve two masters at the same time”.
Once these parastatals are fully privatized in this third phase of
the ongoing privatization exercise to be concluded within the first
quarter of 2010, the new company will have a sense of direction. The
organization structure, the vision and mission of the company will be
consistently adhered to in all levels of the management of the
organization in order to work towards achieving the desire objectives
of the company.
2.7 GOVERNMENT APPROACH TO PRIVATIZATION IN
NIGERIA
The first attempt to move forward a competitive market system
was in 1986 with the introduction of the structural Adjustment
Programme and the promulgation of the privatization and
communication decree No. 25 of 1988. The Federal Government
outlined the objectives to include improvement of the efficiency and
reliability of the operations of the companies, reduction of their
dependency on the national treasury for operation, promotion of
share ownership by Nigerian in productive investment which were
owned wholly or partially by the federal government. At the end of
the process in 1992, a total of 89 companies were privatized. These
include SEA TRAVEL, MOTOR ASSEMBLY, HOTELS and TOURISM,
xxix
TEXTILE, TRANSPORTATION and a lot of others. The proceeds from
the exercise amounted to N4.66 billion.
The second phase of the privatization promises to be the
biggest in Africa as it concerns major state owned National
Corporation. In October 2006, the Bureau for public enterprises
invited local and international investors to express interest in about
37 state owned companies slated for privatization. These include;
Daily Times of Nigeria, New Nigerian Newspaper, Nigerian
Telecommunications Limited and its subsidiary Nigerian Mobile
Telecommunications Limited, National Electric Power Authority,
Rolling Mills, Nigeria Newsprint manufacturing company, Petroleum
Refineries among others. Under the new programme, the
government planned to sell 40% of its equity in the enterprises to
strategic foreign investors through international open tenders. 20%
will be sold to Nigerian investors through public share offers leaving
the government with 40% shares. This pattern of share holding
indicates colonization of the economy as such should be looked into.
LEGAL FRAMEWORK: The Bureau of Public Enterprises (BPE)
Decree No 78 of 1993 which supercede the technical committee of
privatization and commercialization (TCPC) Decree No 25 of 1988
which formed the legal framework for the privatization. However,
amendment is expected to be made to reflect the expected
privatization exercise slated in the first quarter of 2010.
2.8 IMPACT OF PRIVATIZATION ON THE MASSES
The theory justifying privatization holds that it is desirable for
xxx
its likely political effect in deflecting and reducing demand on the
sates. In the 1970s, some critics suggested that the Western
democracies were suffering from an overload of pressure responsible
for excessive spending and poor economic performance. Within this
frame work, privatization represents one of several policies
encouraging a counter – revolution declining expectations. Privatizing
government enterprises and public services in this view will re-direct
aspirations into the market and encourage a more entrepreneurial
consciousness.
The political theory of privatization has several different over
lapping elements.
First, the partial privatization of government parastatals (NITEL
and M-TEL) should have an employment relation. The advocates of
privatization hope to divert employees’ wages and claims from the
public treasury, with its vast capacity for taxing and borrowing, to
private employees, who presumably will have more spines in resisting
wage demand.
Secondly, the advocates of privatization hope also for a
privatization of beneficiary claims. Instead of matching out-side of
government offices when things go wrong, the privatizers want them
to direct their ire to private service providers. The analogies were
mere theoretical following the ethics of privatization in Nigeria,
especially as it affects the telecommunication industry where NITEL
and its subsidiary M-TEL belong. The partial privatization of these
parastatals (NITEL and M-TEL), were purely for personal and political
xxxi
reason as such, the practical connotations for such privatization were
not put into consideration.
The global trends in this information age favours privatization,
not partial privatization, but there has been eries of the partial
privatization of NITEL and M-TEL. Some of the reasons asked for the
clarion call for the privatization and NITEL and M-TEL include;
Inefficiency of the organization
Extensive spending and rip-offs
Corruption, tribalism, favouritism, fraud and indiscipline.
Over size labour
Low returns on investment
Political consideration of sitting of Base
Transmission stations (BTS).
Much as the advantages on privatization seem to hold, the social
impact on the populace should not be under-estimated. Privatization
will bring hike in price of services, tariff or product prices as the
investors would want to recoup their cost of investment on record
time.
There was the possibility of under valuation of the assets of
both NITEL and M-TEL which have been hard earned by tax-payers in
a bid to gain undue advantage by the fraudulent minority company of
Transcorp or rich few who hijacked the whole exercise to themselves
knowing the numerous assets owned by these paratatals over the 36
states and Abuja.
xxxii
Privatization has definitely triggered a massive layout of
workers which has constituted serious problems and un-employment.
Out of the total staff strength of about 13,000 for both NITEL and M-
TEL, about 10,000 staff were retrenched representing 77% keeping
about 3,000 representing 23%. There is no pension scheme. Many
people engaged in public service because of pension scheme dangled
by the government.
2.9 PROBLEMS OF PRIVATIZATION
There were jubilations in almost every quarter when the news
of privatization and acquisition of NITEL and its subsidiary M-TEL by
Transcorp-broke out in 2006. People thought it was a wise decision
taken by the Obasanjo’s administration and a step in the right
direction. The share price of Transcorp immediately appreciated and
people felt it was a good market for investment. Little did they know
that Transcorp was wearing a good company’s mask on disguise
under the shadow of President Olusegun Obasanjo.
In late 2006 when NITEL and M-TEL were partially privatized,
there were sweet testimonies and promises given by the Transcorp
on the acquisition of the government parastatals. These testimonies
later held on substance and faded like a block of ice dropped in a cup
of worm water. Transcorp, rather than keeping to its promises,
engaged in selling some of the assets of the acquired companies and
also brought pains and agonies to the dis-engaged and re-engaged
staff. Salaries and allowances have not been paid to the re-engaged
staff for almost one and half years (1½ years) now. Payment of
xxxiii
pensionable staff was forcefully tagged at five (5) years which was
even paid with difficulties, tears and under strenuous exercise. This
has brought NITEL and its subsidiary M-TEL to partial closure as non-
functional organizations.
The problems of privatization cannot be over-emphasized.
Comrade Nwagbara C. O, the then secretary general of the senior
staff Association of Utilities, Statutory Corporations and government
companies in the Guardian of August 4, 2005, raised an alarm over
the strenuous effects of the national council of privatization to
embark on due diligence with the prospective investors in the
privatization exercise of NITEL and M-TEL, NICON and other
parastatals.
The association lamented that it is not in the public and
national interest for the government to allow its citizens to suffer
humiliation and deprivation as is now the fate of citizens of Nigerian
working in the privatized Niger Dock Ltd, NITEL and M-TEL.
According to him, “No true government of the people can sit around
and oversee the destruction of its citizens. He expressed fear of
dehumanizing labour relations, deprivations and humiliation awaiting
Nigerians citizens as obtained now in privatized parastatals as the
government rushes on the privatization”.
There is no doubt that privatization will have impact on the
employment mix through deliberate policies of downsizing,
restructuring and retrenchments. Consequently more labour will be
xxxiv
thrown into the un-employment market. Regrettably, no social
benefits are attached to the un-employment in Nigeria.
Some sectors of the Nigerian however, have expressed concern
over privatization generally, considering the issues whether the
process places the assets in the hands of those who can deliver the
desired quality service without exploiting the poor, whether the
exercise would not lead to loss of jobs which has already happened.
Oddy E, President of the Senor Staff associations of Nigeria
(NPA), has stated that, given the role of ports as the nations
economic life wire, privatization will mean selling the gateway of
Nigeria economy to foreigners. He emphasized that under a
privatized port, the nation will be exposed to security risks since all
sorts of good will be imported into the country.
“Will, unbundling before its privatization make the difference?
“A pertinent question asked on page 17 of the Nation Newspaper of
February 1, 2010. It reads in parts: … “In line with the advice of the
Nigerian Communication Commission (NCC), the Bureau of Public
Enterprises (BPE) is adopting the un-bundling strategy to deal with
the privatization challenges of NITEL and its subsidiary M-TEL. What
this entails is the breaking down of NITEL into several units, with the
aim of selling them as entities, as opposed to the usual wholesale
strategy that had failed severally in the past.
For the reasons that are peculiarly Nigerians, NITEL’s
privatization has remained problematic, and with the controversy
xxxv
trailing the latest over to unbundle the hitherto functional national
carrier, no one is assured of a fruitful conclusion, the paper stressed.
It is said in the last eight years or thereabout, and at every turn
of events, the federal government has continued to commit very
huge resources to the process designed to fail. For instance, when
Orascom’s bid was rejected, Nigeria paid $800,000 to KPMG (a
consulting firm) through the BPE (Bureau for public enterprises) for a
due diligence examination and other handling charges. The point is,
corruption is the only thing standing in the way of the privatization of
NITEL and its subsidiary M-TEL.
As things stand, we support the “Unbundling Strategy” if it will
not go the way of the Power Holding Company of Nigeria (PHCN). It
appears a reasonable option for obvious reasons. First, the core
investors in communication may no longer find NITEL as attractive as
it was eight years ago. Most of its equipment have become obsolete.”
2.10 SELF INFLICTED COMPLICATION
Strict compliance of both regulators and participants to the
rules and time frames of 1999 privatization and commercialization Act
and customary international privatization practices would had
ensured the evolution and development of a near project policy and
the economic reformation and restructuring of Nigeria’s economy.
The expected trajectory of the entire privatization exercise
immediately took a dangerous derailment after the first five years of
implementation.
xxxvi
By the twilight of the past administration in Nigeria, a plethora
of discontentment on the exercise had reached fever pitches. A
panoply of privatization controversies in Nigeria includes the
entangled privatization exercise of NITEL and its subsidiary M-Tel,
NEPA (PHCN), Power Sector Reforms, the Oil sector reforms
particularly NNPC, the Ports reforms, the inability of 18 successor
companies to Power Holding Company of Nigeria (PHEN) to function,
the sales of National Steel Companies (Ajaokuta Steel and Delta
Steel) to Global Infrastructure, NAFCON, Eleme Petro-Chemicals, the
draconian sale of Federal Government Properties in Lagos and Abuja
considered by Patriotic Civil Servants to be the greatest economics
heist of the 21st Century in Africa.
The technical complications are direct consequences of several
structural defects in the legal, policy and implementation frame works
of the exercise. These defects are better understood by applying
performance bench marks for the exercise. As accumulation of these
complications continues to scupper the lofty objectives of the
exercise, the axiomatic solution is for regulator to re-evaluate, re-
engineer and enforce improved policies and implementation models,
enhance legislative advocacy, regulation and compliance etc. The
consensus among several stakeholders is that Nigerian privatization
program requires several fundamental restructuring and
improvement to argument and maximizes its impact on Nigeria
2.11 REQUIRED REFORMS ON PRIVATIZATION.
xxxvii
2.11.1 WORKABLE PRIVATIZATION MODEL: There are
several models for privatization of public enterprises. However, the
core investor (auction) model is synonymous with transition from
state to market economy and not developing economics hence, it is
the most susceptible to abuses. This model also involves the inclusion
of other institutional supervision agencies such as the Securities and
Exchange Commission and stock exchange.
2.11.2 ESTABLISHMENT OF ADDITIONAL SECTOR
REGULATORY COMMISSION:
The ultimate target of privatization, is to create and expand private
markets. Sector regulation is one of the fulcrums of privatization
considering the manpower handicap of the Bureau for public
enterprises, the solution lies in establishing more sector regulators.
This will enforce price control, free competition, service control,
quantity and quality as in the case of the Nigeria communication
commission for effective sector regulatory commission.
2.11.3 IMPROVED POST PRIVATIZATION REGULATORY
FRAMEWORK:
With the absence of sector regulators and anti competition laws or
commission, an effective post privatization regulatory and compliance
framework should be put in place. In other jurisdiction, privatized
firms are deprivatized and ownership and control reverted to the
regulator once they failed to meet agreed bench mark with in specific
xxxviii
time limits as in the case of NITEL and its subsidiary M-TEL Since the
BPE is overwhelmed by several regulatory responsibilities, another
sub commission must be established for this purposes. The senate
and House committee on privatization can also be of immense value
in compliance and regulation matters. Unfortunately, the senate
committee and House of Representatives committees were severely
compromised doing nothing proactive on privatization for four years.
However, the federal Government of Nigeria must be hailed for
the recent revocation of the sales of NITEL and its subsidiary M-TEL
to Transcorp.
2.11.4 ENACTING NIGERIA’S COMPETITION LAW: The full
concept of privatization involves deregulation of public sector
monopolies, involving of private enterprises, encouraging free
competition with in a regulated framework to improve quality,
quantity of services at reduced prices. Once companies are
deregulated, there is a high tendency for it to operate as a private
monopoly except it is controlled by specific competition or anti-trust
laws. The lack of competition laws remains one of the major bones of
privatization in Nigeria
2.11.5 PUBLIC ACCOUNTABILITY: Since all the faulty or
controversial decisions are made by Government Official in the
exercise, the question arise as to who owes the responsibility and
accountability to whom in the privatization scandals that have
unfolded in recent yours. Can a regulator regulates itself or can one
xxxix
be a judge in your own court? The national assembly that ought to
check the excesses of our privatization seem to compromise in their
functions or do not have enough information. Government can
ensure public accountability of the entire exercise by passing a
freedom of information bill and allowing the national assembly more
supervisory roles. This will bring checks and balances in the functions
and responsibilities of Government Official, stakeholder and affected
enterprises.
2.11.6 NON-AUDIT OR EVALUATION OF THE EXERCISE:
Since 1999 when the privatization Act become law and with the BPE
having privatized over 400 public enterprises. Nigerians have never
been privileged to determine who sold what public enterprises; to
whom was it sold, at what price and what is the performance record
of the privatized firm. We have had snippets of congressional hearing
of designated public enterprises as we saw of NITEL and M-Tel in
2005. This none audit or evaluation of the exercise has only
encouraged certain Government officials sabotaging the exercise to
grow in confidence and statue while majority of the privatized public
enterprise remain prostrate in un-necessary crises, NITEL/MTEL a
practical example.
2.11.7 LOSS OF EXPERIENCED MANPOWER: We have
continued to witness frequent industrial squabbles in privatized public
enterprises. The crux of retrenchment of employees of public Firms
under-mines decades of man-power experience and waste of training
xl
funds used to train staff of privatized firms. The result is the
saturation of unemployment market and wanton waste of valuable
experience and technical know how. None or late payment of
retrenchment benefits has continued to generate frequent industrial
squabbles as seen in NITEL, NAFCON etc. The proper labour policy to
resolve terminal benefit matters is collective bargaining involving the
BPE, the management of the public enterprises, the management of
private firm, the employees union of the public enterprises, other
professional consultant etc.
2.12 SUMMARY OF REVIEW OF RELATED LITERATURE:
The wind of privatization blew across our country (Nigeria) for
some time as occasioned by the reforms being in place by the past
and present administrations. While the reforms was however painful
to others especially the employees of the affected state parastatals
as in the case of NITEL and its subsidiary M-TEL. In changing the
public-private mix in any type of economy, partial privatization will
sometimes be less important than the emergence of new private
business especially in Nigeria.
xli
REFERENCE:
A paper (2006) titled “Transcorp Acquires NITEL/M-TEL”
July, 4.
Comrade Nwagbara C.O (2005), The Guardian Newspaper,
August 4
Dike C. (2005). The wind of privatization
Cook .P. and Kirkpatrick, C. (1988) Privatization in less
Developed Countries, New York, Harvesters and
wheat sheat
M-TEL Journal February/March (2004) M-Tel New
Vol2. No2.
Obadan M and Ayodele A (1988), Improving Public Finance
through reforms of states owned enterprises: A case
of commercialization and privatization; Paper
presented for NCEMA, as a training material on
fiscal policy planning and Management, Ibadan,
Nigeria, May, 2000
Ralp D.S (1996) Strategic Management and Organizational
Dynamics 2nd Ed. Pitman Publishing.
Schwartz S. N. (1993:52) Finance Theory and Corporate
Policy, London, Wesley Publishing Co.
World Bank (1980:1-2) Bureaucrats in Business. The Economics
and Politics of Government Ownership-Pamphlet
xlii
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION:
Every researcher must as a matter of necessity, adopt a
method that will help elicit the idea of the study under consideration.
This chapter, therefore aims at assessing and picking the most
appropriate research method that best suited for the purpose of the
study.
3.2 RESEARCH DESIGN
A research design is the programme that guides the
investigator in the process of collecting, analyzing and interpreting
observation. It serves as a road map or plan of action showing what
and how the researcher will carryout step-by-step procedure of
accomplishing the research endeavour.
The research will employ both the survey and description
research designs. These suit our purpose and are appropriate for this
study. They nonetheless, are advantageous for assessing large and
small populations especially when a small population is to be derived
from a large one.
3.3 POPULATION/SAMPLE SIZE
xliii
Population is the identifiable total set of elements of interest
being investigated by the researcher.
The researcher will administer questionnaires and oral
interviews on a population of about 600 comprising disengaged and
re-engaged staff of NITEL and M-TEL draw from Rivers and Enugu
States. For obvious constraints, not every member of the population
could be reached. In view of this, these groups of staff from the two
parastatals from two states were randomly chosen.
3.4 SOURCE OF DATA
The data for this study were collected from both primary and
secondary sources.
Primary data
In collecting primary data, a questionnaire as a research instrument
was draw up and randomly distributed with in the indicated areas of
study. The questionnaire was designed in format that will give the
best possible information required by the researcher from the
respondents (NITEL/M-TEL staff of retained and disengaged). The
data obtained from these questionnaire were basically relied upon
and used in both the test and the analysis of the hypotheses.
Secondary data
Secondary data were collected by the researcher from textbooks,
magazines, journals and newspaper where relevant for the study.
3.5 SAMPLING TECHNIQUE:
xliv
As can be inferred from above, the technique for gathering
primary data is the simple probability sampling technique. The
relevant respondents from each groups of the sample size are to be
got using the stratified random method.
SAMPLE METHOD
The Yamani’s formular is used to determine the sample size
since the population is known
The formular is;
n = __ N __
1+Ne2
Where n = Desired sample size
N = Population of the study (estimated 600)
e = limit of tolerable error square (using 10%)
I = Theoretically constant.
Assigning values to the formular;
The sample size would be calculated thus;
n = ____600_____ 1+600 x (1.0)2 n = 600 1+6 = 600 7 n = 85.714 n = 86
3.6 PROCEDURE FOR DATA ANALYSIS
The data would be analyzed with the aid of simple percentages
and chi-square (x2)
xlv
The percentage (%) would be used for this research because of
its ability to transform questionnaire into values and attributes which
were quantitative in nature. It would enable the researcher analyze
the variables independently.
The formulated Hypothesis would be tested using a non-
parametric statistic called chi-square (X2) which would be used to
calculate the expected frequency and the formular thus;
Expected frequency = Row total-Column Total
Grand Total
The formular for calculating the chi-square (X2)
X2 = (O-E)2
Where O = Observed frequency
E = Expected frequency
O-E = Deviation
(O-E)2 = Deviation square
In addition, there is another consideration in the use of chi-square
(X2) which is important. It is the assumption of a certain level of
confidence or error margin. The degree of freedom which is its
characteristic is calculated thus;
df = (R-1) (C-1)
Where
df = Degree of freedom
R = Number of rows
C = Number of columns
Rule guiding the use of chi-square.
xlvi
There are two sets of figures that are relevant to the decision guiding
the rule in the use of chi-square (X2). These two variables are the
chi-square calculated value (X2) and the chi-square critical value
(X2o). The rule in calculating the chi-square value (X2) and the chi-
square critical value (X2o) are shown below;
Reject Ho, if X2 > X2o
Accept Hi, if X2 < X2o
Where
Ho = Null Hypothesis
Hi = Alternative Hypothesis
X2 = Calculated value of chi-square
X20 = Critical value of chi-square
> = Greater than
< = Less than
< = less than or equal to
REFERENCES.
Eboh E.C (1998) Social and Economic Research
(Principles and methods) published by
Academic publications and development
Resources Ltd, Lagos.
Eze, A.N. (1999); Practical approach to research
Methods and statistics in Education,
Management and Social Sciences. 1st Ed.
xlvii
Onitsha, Onwubiko printing and packaging.
Emmanuel Dibua etal (2003) Elements of business
Statistics, Vol 1. Success publisher onitsha.
Onwumere J.U (2009) Business and Economic; Research
Methods, 2nd Ed.
CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS AND
INTERPRETATION.
4.1 INTRODUCTION
xlviii
In this chapter, all the data collected are analyzed and interpreted.
The data were presented in tables, the researcher treated statements
in the questionnaire separately and the responses worked out in
percentages. From the analyses, it is hoped that it would be able to
make some deductions which would either result in accepting or
rejecting the hypotheses formulated in chapter one of the study.
Chi-Square (X2) was used in testing of the hypotheses. This provides
a means of comparing set of observed frequency (0) with the set of
expected frequency (E).
4.2 DATA PRESENTATION AND ANALYSIS
In this chapter, the researcher analyses the various data
collected from the respondents. A total of 86 questionnaire were
distributed to both retained and disengaged staff of NITEL and MTEL
in Enugu and River States. Out of these, 80 copies were properly
answered and returned, three (3) copies were considered unsuitable
for analytical purposes while three (3) copies were not returned.
Table 4.1 below shows the population areas under study,
proportion to the population in each area, number of questionnaire
administered, numbers returned, numbers not returned, numbers
considered unsuitable for analytical purposes and percentage
represented.
xlix
TABLE 4.1 DISTRIBUTION OF QUESTIONNAIRE
Source: From NITEL/MT-TEL Zonal Personnel Offices, Enugu.
TABLE 4.2 DISTRIBUTION AND RETURN RATE OF
QUESIONNAIRE.
S/NO Questionnaire No of respondents Percentage
1 Returned 83 96.5
2 Not Returned 3 3.5
3 Not used 3 3.5
4 Used 80 93.0
Total distribution 86 100
Source: From Field Investigation
S/N Population Groups Estimated Population
Number of Questionnaire
Nos Returned
Numbers Unreturned
Nos Not Used
Nos Used
%
01 Nitel Staff Retained, Enugu
67 22 22 - 1 21 26.2
02 Nitel Staff disengaged , Enugu
202 17 16 1 1 15 18.8
03 Nitel Staff Retained, Rivers
87 16 15 1 - 15 18.8
04 NitelStaff disengaged, Rivers
191 13 12 1 - 12 15.0
05 M-Tel Staff Retained, Enugu
26 8 8 - - 8 10.0
06 M-Tel Staff disengaged, Enugu
11 4 4 - 1 3 5.0
07 M-Tel Staff Retained, Rivers
10 4 4 - - 4 3.7
08 M-Tel Staff Disengaged, Rivers
6 2 2 - - 2 2.5
600 86 83 3 3 80 100
l
Table 4.2 Illustrates that out of the total of 86 questionnaire
distributed, 83 representing 96.5% were returned, 3 representing
3.5% were not returned, 3 representing 3.5% were not suitable for
used while 80 representing 93% were used in the analyses.
TABLE 4.3 DISTRIBUTION OF RESPONDENTS ACCORDING TO SEX
S/NO Sex No of respondents Percentage
1 Male 62 77.5
2 Female 18 22.5
Total 86 100
Source: From Field Investigation
Table 4.3, shows that 62 respondents (77.5%) were males while 18
respondents were (22.5%) were female.
Table 4.4 AGE CLASSIFICATION OF RESPONDENTS
S/NO Age No of respondents Percentage
1 20-25yrs 5 6.3
2 26-35yrs 24 30.0
3 36-45yrs 32 40.0
4 46 years and
above
19 23.7
Total 80 100
Source: From Field Investigation
Table 4.4 shows that 5 respondents (6.3%) were between 20-25yrs,
24 respondents (30%) were between the age of 26-35yrs; 32
li
respondents (40%) were between the age of 36-45years and 19
respondents (23.7) were 46 years and above.
TABLE 4.5 DISTRIBUTION OF RESPONDENTS WORKING EXPERIENCE IN NITEL/MTEL
S/N Years of work Experience
No of respondents Percentage
1 Less that 5 years 7 8.7
2 Between 5 and 10years 13 16.3
3 Between 10 and 20 years
18 22.5
4 Over 20 years 42 52.5
Total 80 100
Source: From Field Investigation
Table 4.5 illustrate that 7 respondents(8.7%) have worked for
between 1-5years in the parastatals, 13 respondents (16.3%) have
worked for between 5-10years; 18 respondents (22.5%) have
worked for between 10-20years in the parastatals and 42
respondents (52.5%) have put in for more than 20years of service.
Table 4.6 EDCUATIONAL QUALIFCATIONS OF RESPONDENTS
S/NO Educational
Qualification
No of respondents Percentage
1 WASC/GCE O/L 8 10.0
2 OND/NCE/HSA 18 22.5
3 HND/BSC/BA 34 42.5
4 MBA/MSC/M.A 16 20.0
Total 80 100
Source: From Field Investigation
lii
In table 4.6, it is shown that 8 respondents (10%) possessed
WASC/GCE ’O’ Level; 18 respondent (22.5%) possessed
OND/NCE/HSC; 34 respondents (42.5%) possessed HND/BSC/B.A; 16
respondents (20%) possessed MBA/M.SC/M.A while 4 respondents
(5%) possessed professional and other qualifications.
Table 4.7 DISTRIBUTION OF RESPONDENTS RETAINED AND DISENGAGED
STAFF.
S/NO Parastatals No of respondents Percentage
1 NITEL Retained 36 45
2 NITEL Disengaged
27 33.75
3 M-tel Retained 12 15
4 M-tel Disengaged 5 6.25
Total 80 100 Source: from Field Investigation.
Table 4.7 shows that a total of 36 respondents (45%) were from
retained NITEL staff; 27 respondents (33.75%) were from dis-
engaged NITEL staff; 12 respondents (15%) were from retained M-
tel staff while 5 respondents (6.25%) were from dis-engaged M-tel
staff.
TABLE 4.8: RESPONDENT IN TO TWO GROUPS (RETAINED AND DIS-
ENGAGED)
Table for easy analyses s/n Group No of
Respondent
%
1 Retained 48 60
2 Disengaged 32 40
liii
Total 80 100
TABLE 4.8 RESPONDENTS IN TO TWO GROUP (RETAINED
AND DISENGAGED) FOR EASY ANALYSES.
S/NO Groups No of respondents Percentage
1 Retained 48 60
2 Disengaged 32 40
Total 80 100
Source: Field investigation
Table 4.8, illustrate that 48 respondents (60%) were retained staff of
both parastatals while 32 respondents (40%) came from the
disengaged staff of both NITEL and M-tel.
TABLE 4.9 RESPONDENTS REACTION ON WEATHER PROBLEMS
ARE ASSOCIATED WITH THE PRIVATIZATION OF NITEL AND M-
TEL.
S/NO Responses No of respondents Total Percentage
Retained Disengaged
1 Strongly 25 15 40 50
liv
Agree
2 Agree 15 12 27 38.75
3 Undecided 4 3 7 8.75
4 Disagree 2 1 3 3.75
5 Strongly
Disagree
2 1 3 3.75
Total 48 32 80 100
Source: Field investigation.
Table 4.9 shows that a total of 40 respondents (50%) strongly agree
that there are problems associated with NITEL and M-Tel
privatization; 27 respondent (33.75%) agree; 7 respondents (8.75%)
were undecided; 3 respondents (3.75%) disagree while 3
respondents (3.75%) strongly disagree.
TABLE 4.10 RESPONSES FROM PRIVATIZATION OF NITEL AND M-
TEL NOT FOLLOWED DUE PROCESS AS SUCH LACKS
TRANSPARENCY.
S/NO Responses No of respondents Total Percentage
Retained Disengaged
1 Strongly Agree
18 20 38 47.50
2 Agree 22 9 31 38.75
3 Undecided 1 - 1 1.25
4 Disagree 4 2 6 7.500
5 Strongly Disagree
3 1 4 5.00
Total 48 32 80 100
Source: field investigation
lv
Table 4.10 reveals that a total of 38 respondents (47.50%) strongly
agree that the privatization of NITEL and M-Tel did not follow due
process hence, lacks transparency; 31 respondents (38.75%) agree;
1 respondent (1.25%) was undecided; 6 respondents (7.50%)
disagree while 4 respondent (5%) strongly disagree.
TABLE 4.11: RESPONSES ON THE NEGATIVE IMPACTS OF
PRIVATIZATION ON THE LABOUR MARKET AND THE EMPLOYEES
S/N Responses No of respondents Total Percentage
Retained Disengaged
1 Greatly affected
20 13 33 41.25
2 Affected 20 15 35 43.75
3 Undecided 3 1 4 5
4 Not affected
5 2 7 8.75
5 Not greatly affected
- 1 1 1.25
Total 48 32 80 100
Source: from field investigation.
Table 4.11 reveals that a total of 33 respondents (41.25%) strongly
agree that privatization has negative impacts on the labour market
and on the employees of the privatized parastatals (NITEL and M-
Tel); 35 respondents (43.75%) agree; 4 respondents (5%) were
undecided; 7 respondents (8.75%) disagree while 1 respondent
(1.25%) strongly disagree.
lvi
TABLE 4.12: RESPONSES ON PARTIAL PRIVATIZATION THAT
DOES NOT OBEY THE RULE OF UNITY OF COMMAND IS NOT
THE ASPIRATION OF THE MASSES
S/N Responses No of respondents Total Percentage
Retained Disengaged
1 Strongly agree
17 10 27 33.75
2 Agree 20 18 38 47.50
3 Undecided 3 - 3 3.75
4 Disagree 5 2 7 8.75
5 Strongly disagree
3 2 5 6.75
Total 48 32 80 100
Source: from field investigation.
Table 4.12 shows that 27 respondents (33.75%) strongly agree that
the masses never aspired for partial privatization that does not obey
the rule of unity of command; 38 respondents (47.50%) agree; 3
respondents (3.75%) were undecided; 7 respondents (8.75%)
disagree while 5 respondents (6.25%) strongly disagree.
TABLE 4.13: RESPONSES ON THE RETAINED AND
DISENGAGED STAFF NOT WELL TAKEN CARE OF AFTER
PRIVATIZATION.
S/N Responses No of respondents Total Percentage
Retained Disengaged
1 Strongly agree 24 19 43 53.75
2 Agree 20 12 32 40
3 Undecided - 1 1 1.25
4 Disagree 2 - 2 2.50
lvii
5 Strongly disagree
2 - 2 2.50
Total 48 32 80 100
Source: from field investigation.
Table 4.13 show that 43 respondents (53.75%) strongly agree that
the retained and disengaged staff of NITEL and M-Tel were not
properly taken care of after the privatization; 32 respondent (40%)
agree; 1 respondent (1.250%) disagree while 2 while 2 respondents
(2.50%) strongly disagree.
4.3 TESTING OF HYPOTHESES
HYPOTHESES 1
Ho: There is positive correlation between privatization of federal
paratatals and its associated problems.
Hi: There is no positive correlation between privatization of federal
parastatals and associated problems.
To test this Hypotheses, table 4.9 will be used.
Chi-square contingency table. S/N Responses No of respondents Total
Retained Staff O E
Disengaged Staff O E
1 Strongly agree 25 (24) 15 (16) 40
2 Agree 15 (16.2) 12 (10.8) 27
3 Undecided 4 (4.2) 3 (2.8) 7
4 Disagree 2 (1.8) 1 (1.2) 3
5 Strongly disagree 2 (1.8) 1 (1.2) 3
Total 48 32 80
E=nr nc n where E= Expected frequency
nr = Row total
lviii
nc= Column total
n = Grand total = 80
Using a 5% level of significance and degree of freedom given:
df = (Row-1) (column-1)
= (5-1) (2-1)
4x1 = 4
Then the critical value of (Xo2)__ 9.5.
To test the hypotheses, the decision rules are;
Reject the Null (Ho) hypotheses if the calculated value of the test
statistics is greater than the critical value of 9.5 but accept it (Ho) if
Xo2 > X2 cal.
Chi-square: X2 = ∑(O-E)2
E
Chi-square table
S/N O E O-E (O-E) (O-E)2
E
1 25 24 1 1 0.04
2 15 16.2 -1.2 1.44 0.09
3 4 4.2 -0.2 0.04 0.01
4 2 1.8 0.2 0.04 0.02
5 2 1.8 0.2 0.04 0.02
6 15 16 -1 1 0.06
7 12 10.8 1.2 1.44 0.13
8 3 2.8 0.2 0.04 0.01
9 1 1.2 -0.2 0.04 0.03
10 1 1.2 -0.2 0.04 0.03
lix
X2 0.44
Thus, since the critical value Xo2 (9.5) is greater than the calculated
value X2(0.44), we accept the Ho and accordingly reject Hi. We
conclude by accepting the Null hypotheses, therefore that there are
positive correlations between privatization and its associated
problems.
TEST OF HYPOTHESES 2
Ho: Privatization exercise does not follow due process as such lacks
transparency.
Hi: Privatization exercise on NITEl and M-Tel followed due process
as such does not lack transparency.
To test this hypotheses, table 4.10 will be used
Chi-square contingency table Responses No of respondents Total
Retained Staff O E
Disengaged Staff O E
Strongly agree 18 (22.8) 20 (15.2) 38
Agree 22 (18.6) 9 (12.4) 31
Undecided 1 (0.6) - (0.4) 1
Disagree 4 (3.6) 2 (2.4) 6
Strongly disagree 3 (2.4) 1 (1.6) 4
Total 48 32 80
E= nr nc n
Using a 5% level of significance and degree of freedom
Given; df = (Row-1) (column -1)
(5-1) 2-1)
4x1 = 4
lx
Thus, the critical value of (X2o) = 9.5
To test our hypotheses, the decision rules are;
Reject the Null (Ho) hypotheses if the calculated value of the test
statistics is greater than the critical value of 9.5, but accept it (Ho) if
X2o > X2 calculated.
Chi-square: X2 = ∑(O-E)2
E
Chi-square table S/N O E O-E (O-E) (O-E)2
E
1 18 22.8 -4.8 23.04 1.01
2 22 18.6 3.4 11.56 0.62
3 1 0.6 0.4 0.16 0.27
4 4 3.6 0.4 0.16 0.04
5 3 2.4 0.6 0.36 0.15
6 20 15.2 4.8 23.04 1.52
7 9 12.4 -3.4 11.56 0.93
8 - 0.4 -0.4 0.16 0.40
9 2 2.4 -0.4 0.16 0.07
10 1 1.6 -0.6 0.36 0.23
X2 5.24
Thus, since the X2o (9.5) is greater than the X2 (5.24) the calculated
value, we accept Ho and accordingly reject Hi. We conclude by
accepting the Null hypotheses, therefore, that the privatization
exercise does not follows due process as such, lacks transparency.
TEST HYPOTHESES 3
Ho: Privatization has negative effect on the labour market and the
employees of the privatized parastatals.
HI: Privatization has no negative effect on the labour market and the
lxi
employees.
To test this hypotheses, table 4.11 will be used
Chi-Square contingency table
Responses Respondents Total
Retained Staff O E
Disengaged Staff O E
Strongly Agree 20
(19.8)
13 (13.2)
33
Agree 20 (21) 15 (14) 35
Undecided 3
(2.4)
1 1.6) 4
Disagree 5
(4.2)
2
(2.8)
7
Strongly Disagree -
(0.6)
1
(0.4)
1
48 32 80
E= ncnr
n
Using a 5% level of significance and degree of freedom given;
df (Row-1) (Column-1)
(5-1) (2-1)
4 X 1 = 4.
Critical value of (XO2 )= 9.5
To test our hypotheses, the decision rules are;
lxii
Reject the Null (Ho) hypotheses if the calculated value of the test
statistics is greater than the critical value of 9.5, but accept it (H0) IF
X 02 > X2 calculated.
Chi-square; x2 = Σ (0-E)2 E
Chi- square table
S/N 0 E 0-E (0-E)2 (O-E)2
E
1 20 19.8 0.2 0.04 0.002
2 20 21 -1 1 0.048
3 3 2.4 0.6 0.36 0.15
4 5 4.2 08 0.64 0.152
5 0 0.6 -0.6 0.36 0.6
6 13 13.2 -0.2 0.04 0.003
7 15 14 1 1 0.071
8 1 1.6 -0.6 0.36 0.225
9 2 2.8 -0.8 0.64 0.229
10 1 04 0.6 0.36 0.9
Х2 2.38
Thus, since the x02 (9.5) is greater than the x2 (2.38) the calculated
value, we accept the Ho and accordingly reject Hi. We conclude by
accepting the Null hypotheses therefore, that privatization has
negative effects on the labour market and the employees.
TEST OF HYPOTHESES 4
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H0: Partial privatization that does not obey the law of unity of
command is not the aspiration of the masses.
Hi: Partial privatization is the aspiration of the masses.
To test this hypotheses, table 4.12 will be used.
Chi-square contingency table.
Responses Respondents Total
Retained staff O E Disengaged Staff
O E
Strongly Agree 17
(16.2)
10 (10.8) 27
Agree 20
(22.8)
18 (15.2) 38
Undecided 3 (1.8) 0 (1.2) 3
Disagree 5 (4.2) 2 (2.8) 7
Strongly
Disagree
3 (3) 2 (2) 5
48 32 80
E = nc nr
n.
Using a 5% level of significance and degree of freedom given;
df = (Row – 1) (column – 1)
= (5 – 1) (2 – 1)
= 4 x 1 = 4
lxiv
Critical value of ( xo2) = 9.5
To test our hypotheses, the decision rules are; reject the Null (Ho)
hypotheses if the calculated value of the test statistics is greater than
the critical value of 9.5, but accept it (Ho) if xo2 > x2 calculated
Chi-square, X2 = Σ (O-E)2 E
S/N 0 E 0-E (0-E)2 (0-E)2 E
1 17 16.2 0.8 0.64 0.04
2 20 22.8 -2.8 7.84 0.34
3 3 1.8 1.2 1.44 0.8
4 5 4.2 0.8 0.64 0.15
5 3 3 0 0 0
6 10 10.8 -0.8 0.64 0.06
7 18 15.2 2.8 7.84 0.52
8 0 1.2 -1.2 1.44 1.2
9 2 2.8 -0.8 0.64 0.23
10 2 2 0 0 0
Х2 3.34
Thus, since the xo2 (9.5) is greater than the x2 (3.34) the calculated
value, we accept the Ho and accordingly reject Hi. We conclude by
lxv
accepting the Null hypotheses, therefore, that the partial privatization
is the aspiration of the masses.
TEST OF HYPOTHESES 5.
Ho: Both retained and disengaged staff of the company were not
Well taken care of after the privatization
Hi: Both retained and disengaged staff of the parastatals were well
taken care of after the privatization to test this hypotheses,
table 4.13 will be used.
Chi-square contingency table.
Responses Respondents Total
Retained staff O E Disengaged Staff
O E
Strongly Agree 24
(25.8)
19 (17.2) 43
Agree 20
(19.2)
12 (12.8) 32
Undecided - (0.6) 1 (0.4) 1
Disagree 2 (1.2) - (0.8) 2
Strongly
Disagree
2 (1.2) - (0.8) 2
48 32 80
E = nc nr
lxvi
n.
Using the 5% level of significance and degree of freedom given;
df = (Row – 1) (column-1)
= (5-1) (2-1) = 4x1 = 4.
The critical value of (x02) = 9.5
To test our hypotheses, the decision rules are; reject the Null (H0)
hypotheses if the calculated value of the test statistics is greater than
the critical value of 9.5 but accept it (H0) if x02 > x2 calculated
Chi-square: x2 = Σ (10-E)2 E
Chi-square table.
S/N 0 E 0-E (0-E)2 (0-E)2 E
1 24 25-8 -1.8 3.24 0.13
2 20 19.2 0.8 0.64 0.03
3 0 0.6 -0.6 0.36 0.6
4 2 1.2 0.8 0.64 0.53
5 2 1.2 0.8 0.64 0.53
lxvii
6 19 17.2 1.8 3.24 0.19
7 12 12.8 -0.8 0.64 0.05
8 1 0.4 0.6 0.36 0.9
9 0 0.8 -0.8 0.64 0.8
10 0 0.8 -0.8 0.64 0.8
Х2 4.56
Thus, since the xo2 (9.5) which is the critical value is greater than the
calculated value x2 (4.56), we accept the Null (H0) hypotheses and
accordingly reject the alternate (Hi) hypotheses. We conclude by
accepting the Null hypotheses, therefore, that the retained and the
disengaged staff of the parastatals were not well taken care of after
the privatization.
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, RECOMMENDATION AND
CONCLUSION
5.1 SUMMARY OF FINDINGS:
lxviii
It has been analytically proved that privatization remains one of
the major reforms Mechanism in every ailing economy of a country or
Parastatal. This reform is associated with problems which help in
making the exercise ineffective if not properly checked.
In this research work, attempt was made to seriously examine
the problems on privatization of federal parastatals with particular
reference to NITEL and its subsidiary M-Tel, with chosen population
figures in River and Enugu States respectively.
In order to achieve the objective of this study, some research
questions were formulated. Consequently, the questions in the
questionnaire were based on these research questions which were
eventually distributed. Having known the population of the study
through the two chosen states, the sample size was determined
using a sample method of “Yamani’s formular” which also determined
the number of questionnaire to be distributed.
A total of eighty six (86) questionnaire were distributed to both
disengaged and re-engaged staff of NITEL and M-TEL in both Rivers
and Enugu States. Out of which, eighty three (83) respondents were
returned. In Enugu State with 50 respondents and Rivers State with
lxix
33 respondents returned respectively. It might also interest us to
know that the respondents study included sexes, ages and
educational qualifications.
Various sample techniques were contributively used in this
study. Among them are the “Yamani’s formular”, simple percentage
and the non-parametric statistics called chi-square.
The data used in this study were collected through primary and
secondary sources. The questionnaire were analyzed using simple
percentages while the hypotheses were tested using non- parametric
statistic called chi-square at 5% (0.05) level of significance.
At the end the exercise of this study, the following findings
were made:
1. The respondents agreed that the privatization exercise
embarked upon by the federal government on NITEL and M-
TEL was a reform in a right direction.
2. The respondents also strongly agreed that though, like a toad
that likes water but not water, they like the privatization reform
but not partial privatization.
lxx
3. The respondents are aware of the militating problems
associated with the privatization of NITEL and M-TEL but
argued that some of these problems are self inflicted
complications which ought to be addressed properly.
4. Obviously, the respondents agreed that the privatization
exercise does not follow-due process as such, lacked
transparency. This argument was based on corruption that has
remained the omnipresent obstacle that erodes every exercise
in the country
5. The respondents argued that the privatization has resulted in
the saturation of the un-employment market and wanton waste
of valuable experience and technical know how.
6. The retrained and disengaged staff of there parastatals are not
well taken care of after privatization. This is because, there is
no proper labour policy to resolve terminal benefits matters in
collective bargaining.
7. Another finding of the study indicates that government
parastatals like NITEL and M-TEL are of more economic burden
to the government, hence privatization.
lxxi
8. Though, the respondents strongly agreed that privatization of
NITEL and M-TEL will enhance greater accountability and
development of better management practice. It raise apartment
question, who privatizes the public sector? Can a regulator
regulates itself or can one be a judge in your court?
9. Another finding also indicates that privatization will raise
financial resources that will be channeled to development of
infrastructure. Considering $750m sales of NITEL and M-TEL to
Transcorp, how much was paid if actually money was paid and
to whom? This tells us the level of corruption in the country
and under development.
10. The respondents strongly agreed that the privatization motive
in Nigeria’ is to enable the money barons to buy the public
enterprises and not for economic restructuring
5.2 RECOMMENDATION
Based on the findings of this study, the following recommendations
are therefore made to improve the problems on privatization of
federal parastatals.
lxxii
1. There should be strict compliance of both regulators and
participants to the rules and time frames of the 1999
privatization and commercialization act and customary
international privatization practices that will ensure the
evolution and development of a near perfect policy and the
economic reformation and restructuring of Nigeria’s political
economy.
2. Since corruption has made privatization not to follow due
process or being transparent, the EFCC and ICPC should audit,
investigate and prosecute from 1999 to date any public officer
of government official for economic sabotage or crime arising
out of privatization.
3. The federal Government or the labour Ministry should have a
proper labour policy to resolve terminal benefit matters in
collective bargaining involving the BPE, the management of the
public enterprises, the management of the private firm, the
employees union of the public enterprises, other professional
consultants etc.
lxxiii
4. It is pertinent to know that no manager likes serving two
masters at a time. Serving two masters at a time does not obey
the rule of unity of command stated by Henri Fayol in his
fourteen principles of administration. Therefore, partial
privatization should be ruled out but policies and rules be made
to check the privatized firm.
5. Since the crux of retrenchment of employees of parastatals
undermines decades of manpower experience and waste of
training funds, the privatization agencies should pre-condition
the minds of staff for viable entrepreneurship with possible
orientation before retrenchment as to make retrenched staff
self employed.
5.3 CONCLUSION
With careful and analyzed study and findings, it is pertinent to
conclude that the suggested recommendations will certainly galvanize
and ensure optimal value of privatization to the Nigeria economy in
the longer term since the associated problems in privatization
becomes the bone of concern.
lxxiv
With a new government and economic team, a new national
council of privatization, it will be a new opportunity to inculcate best
global practices into the Nigerian privatization exercise to eliminate
lack of transparency and undue process believed to be dominant
factors in the privatization exercise. This will help in no small
measure the labour and the un-employed market, the staff of the
privatized parastatals before and after privatization who suffered for
no faults of theirs.
Finally, it is the researcher’s belief that this work will go a long
way in helping and enriching the knowledge of other students,
corporate bodies and the public at large.
lxxv
BIBLIOGRAPHY
Abdulkadum B.I. (1992): The Multifunction Telephone system;
NITEL Journal vol. 8, January/February, 19.
Agagu, A.A. (2008): Re-engineering the Nigeria Public
Services in an era of reforms.
Cook, P. and Kirkpatrick, C. (1988): Privatization in less
Developed Countries, New York, Harvesters and Wheat
Sheat
Dike, C. (2005): The grain and pain of privatization.
Providence press (Nig) Ltd, Enugu.
Eboh E.C. (1998): Social and Economic Research (Principles and
Methods); Published by academic publications and
development resources Ltd Lagos.
Emmanuel D. etal (2003); Elements of Business Statistics, vol. 1,
Success Publisher, Onitsha.
Eze, A.n. (1999); Practical Approach to Research Methods and
Statistics in Education, Management and Social Sciences.
1st Ed. Onitsha, Onwubiko printing and packaging.
Hayatu Deen (1985:1-3); “Performance Contract tools for Public
Enterprises Reform and Restructuring “Paper Presented at
the National Workshop on the Commercialization
Programme Organized by TCPC in April, 1985.
lxxvi
Mbanefo, A.C. (1985: 1-4); Capital Restructuring for Successful
Privatization, Organized by the Securities and Exchange
Commission, Kano.
M-Tel Journal, February/March (2004); M-tel News vol. 2, No:2
M-Tel Journal, July (2003); M-tel News vol. 1, No:2
Obadan M. and Ayodele A (1988); Improving Public Finance
through
Reforms of state owned enterprises. A case of
Commercialization and Privatization; Paper Presented as a
Training material on fiscal Policy Planning and
Management, Ibadan, Nigeria.
Okeke, C.O. (1983:2-3); “Restructuring the Nigerian Economy; The
place of Privatization”. A Paper presented at the
National Seminar on Privatization, organized by the
Securities and Exchange Commission, Kano.
Onwumere J.U. (2009); Business and Economics; research methods
2nd Ed.
Ralp D.S. (1996); Strategic management and organizational
Dynamics;
2nd Ed. Pitman publishing.
Schellerberger, R.E. (1969); Management Managerial Analysis
(Home wood. Illinois); Richard D-Irwin.
World Bank: (1980); Bureaucrats in Business; The Economics and
Politics of Government Ownership, Pamphlet.
lxxvii
APPENDIX
QUESTIONNAIRE
The Faculty of Business
Administration
University of Nigeria
Enugu Campus
19th February, 2010.
Dear Respondent,
This questionnaire, being presented for your completion, is purely
for academic research purpose in partial fulfillment of the
requirements for an award of MBA Degree in Management (Human
Resources) of the University of Nigeria.
lxxviii
It is designed to gather information relating to problems of
privatization on federal parastatals with NITEL and its subsidiary M-
Tel as case studies.
It is also my request therefore, that you sincerely answer these
questions as the success of this work depends on your willingness to
do so.
Thank you.
Yours sincerely,
ORLU DAGOGO CORNELIUS.
OPINION ON PROBLEMS ON PRIVATIZATION OF NITEL AND
ITS SUBSIDIARY M-TEL.
INSTRUCTION:
Kingly complete this questionnaire by ticking (v) in the appropriate
box.
1. Sex:
Male
Female
2. Which category below do you belong?
lxxix
Retained staff (Both NITEL and M-TEL)
Disengage Staff (Both NITEL and M-TEL)
3. Age:
18-30 yrs
31-40 yrs
41-50 yrs
51-60 yrs
4: What is your highest academic/professional qualification?
WASC/GCE “O” LEVEL
HSC/GCE “A” LEVEL
OND/NCE
HND/Bsc, BA
MA, MED, MBA
Professional qualifications
5. Does the privatization exercise embarked upon by federal
government on NITEL/M-TEL a step in the right direction?
Strongly Agree
Agree
Undecided
Disagree
Strongly disagree
6. What type of privatization do you expect?
Full privatization
Partial privatization
Non of the above
lxxx
All of the above
7. There are militating problems associated with the privatization
of NITEL and M-Tel.
Strongly Agree
Agree
Undecided
Disagree
Strongly disagree
8. The privatization exercise does not follow due process as such,
lacks transparency.
Strongly Agree
Agree
Undecided
Disagree
Strongly disagree
9. The privatization affects the labour market and the employees
of the parastatals negatively.
Greatly Affected
Affected
Undecided
Not affected
Not Greatly Affected
10. Partial Privatization that does not obey the unity of command
and is not the aspiration of the masses.
lxxxi
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree
11. The retained and disengaged staff of these parastatals were
not well taken care of after the privatization.
Strongly Agree
Agree
Undecided
Disagree
Strongly disagree
12. Government parastatals like NITEL and M-TEL are of more
economic burden to the government, hence privatization.
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree
13. Privatization of NITEL and M-TEL will enhance greater
accountability and development of better management
practices
Strongly Agree
Agree
lxxxii
Neutral
Disagree
Strongly Disagree
14. Privatization will raise financial resources that will be channeled
to development of infrastructure.
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree
15. The privatization motive in Nigeria is to enable the money
barons to buy the public enterprises and not for economic
restructuring
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree
16. Privatization eradicates frauds and wrong staffing which are in
built in Government parastatals.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree.
lxxxiii