AN ASSESSMENT OF PRIVATIZATION POLICY ON COMMUNICATION INDUSTRY IN NIGERIA

Abstract

This paper examines the implication of privatization policy on communication industry in Nigeria. The commercialization and privatization policy aims at reducing the size of the public sector economy, restructuring government's expenditure policies and fostering financial discipline in affected enterprises such that the overall result would culminate in the improvement of the efficiency of public administration and the reduction of government's fiscal deficit in order to improve the uncomfortable state of public finances. The study is based on the assumption that one of the primary objectives of the commercialization and privatization programme is the improvement of economic (productive and allocative) efficiency of enterprises. Empirically, this objective is best attained under a competitive market environment where prices are set equal to the MC of production. (The contestable market theory: Baund 1982). The study is limited to NITEL Plc.