Privatization/Commercialization of State-Owned Enterprises in Nigeria

Nigeria's economic crisis of the 1980s called into question two major aspects of its political economy: its mixed economy development model and state-operated enterprises (SOEs) seen as the embodiment of the distortions and inconsistencies of the model. Compelled by deepening economic crisis and pressure from its international creditors, the Babangida administration in 1987 introduced economic reform measures that included privatization and commercialization of SOEs. This article examines Nigeria's experience with the privatization/commercialization program. It focuses on the development and performance of Nigeria's public enterprises, the nature and objectives of the program, its theoretical framework, and some concerns that the program generates.