Economic Reform Measure in Nigeria

Welcome to class!

In today’s class, we will be talking about economic reform measure in Nigeria. Enjoy the class!

Privatization: This is the transfer of a company or organization from government to private ownership and control.
Commercialization: This is the process of managing or running an organization or company for financial gain.
Deregulation: This is the process of removing constraints, especially government-imposed economic regulation or government power usually to create more competition within the industry.

To make a profit.
Reduction of economic recession thereby providing employment and reducing wastage of public sectors.
To restructure the economy and attract foreign investors.

It improves efficiency since the motive is for profit-making and also cutting unnecessary cost.
It reduces government or political interference, which normally is bad for business.
Pressures from shareholders make the privatized firm perform better.
Privatization increases competition.
The government will raise more revenue from the sales of privatized firm.

Privatization may set higher prices for the consumer that they might not be able to afford.
Some organizations are meant to be for public interest and not for profit-making, e.g. health care system. If these firms are privatized then there is nothing citizens are enjoying from the government.
Government misses dividends that they are supposed to be getting from these firms, instead, it goes into the pocket of wealthy shareholders.
These private companies can be monopolized which is bad for the economy, therefore the need for government regulations.

We hope you enjoyed the class.

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