ASSESSMENT ON THE ROLE OF CAPITAL MARKET ON PRIVATIZATION PROCESS IN NIGERIA
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BACKGROUND OF THE BODY
Privatization Appeared on standard dictionaries only in the early 1980s [it appeared in Webster new collegiate Dictionary is one of the radical methods through for thinning the government owned enterprises [which failed to maximize greater goods, he did so at high cost and ran government into severe fiscal problems in the 1980s making loans difficult to raise both home and abroad]. Around the other method was to strengthen the methods by which government controlled their enterprises. To achieve these goals, a viable capital market must be put in place (Ubani 2018) .
In Nigeria context, the privatization process has been greatly criticized by the media and even by the civil society, it is the focus of this paper to enlighten the masses on how the current privatization process will help to redistribute income, create more employment for the people, channel funds from the surplus to the deposit group and increase the revenue of the government in the country.
The privatization process is one of the recommendation of the structural adjustment [SAP] for many years up to 1980, the Nigerian government made fairly extensive use of the public enterprise [PES] for resource mobilization and allocation, particularly within the social service and utilities sector with the windfall from the crude oil sales during the boom of the 1970s, the economic activities of PES in Nigeria expended significantly beyond the authoday domain of social services and utilities into agriculture, banking and finance, manufacturing, mining, commerce etc.
With this expansion by the 1980s, and increasingly dominant PES sector, accounting for about 50% of the Gross Domestic Product [GDP] and 60% of the modern sector employment had emerged in Nigeria [FRN 1986] by this time also, the number of PES at the federal level alone had reached about 600 enterprises and some 900 smaller one at the state and local government level, [Technical committee of privatization and commercialization [TCPC, 1993].
Also by the 1985 estimate, total investment in these PES at the federal level is about N36,756.00 billion which TCPC now Bureau for public enterprises [BPE] revaluated using the 1993 estimates being about N5000.00 billion of the investment estimates public utilities [PUS] public enterprises producing hard core infrastructure such as electricity, water telecommunications and transport, accounted for about 37.4% [TCPC, 1993] for the maintenance and sustenance of the economic activities sof this PES, the Nigeria government had usually expanded about 40& and 30% of its forced capital and recurrent expenditures respectively on them annually at the pre-structural adjustment programme [SAP] period [FRN 1986] from the foregoing, it has been ascertained that the oil boom of the 1970s made it possible for the government to dabble into starting from the doctrine that government should control the commanding height of the economy, the public sector went ahead to set up many manufacturing trading activities in direct competition with well established private enterprises. They also required majority shares in the oil companies (Faareida 2019).
Commercial bank, insurance companies and newspaper, some state government even went to the extent of investing in laundry and dry cleaning services yet, it must be stressed that even the most of the industries that have deliberately been chosen to reserve for government in Nigeria re either wholly or partly run by the private sector elsewhere e.g power generation and distribution [USA and UK] to mention but a few. These sectors have been found out to be performing in Nigeria. As opined by Gregor (2018) opined that this is why privatization is indispensable of the moment of the ailing nations economy. The achieve greater efficiency, the capital market has to be fully alive, one of the objectives of the privatization process is to ensure a more viable capital market within an economy and also the privatization process cannot be carried out successfully without the capital market. The capital market, through the Nigerian stock exchange is saddled with the responsibility of ensuring a successful privatization.
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