THE ROLE OF COMMERCIAL BANK IN THE PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA

ABSTRACT

This work on the role of commercial banks in the privatization of public enterprised in Nigeria was the objectives of investigating the liquidity problem of commercial banks with a view to ascertaining whether or not, it can permit them to provide credits to disadvantages in privatization programme.

2.       To highlight possible ways commercial banks can avert the experiment is in the implementation of the Nigeria enterprises promotion Ijever of 1972.

3.              To suggest ways of improving accessibility of forms to rural branches to achieve a wilder distribution of shares.

4.              To examine the economic liability of securing credit of share certificate only on commercial banks portfolio risk.

In carrying out the research, secondary data were used only in the findings, appropriate, recommendations were made and conclusions reached.

PROPOSAL

THE ROLE OF COMMERCIAL BANKS IN THE PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA.

This work on the role of commercial banks in the privatization of public enterprises in Nigeria has its scheme and objectives as follows.

To diagnose and investigate the problem facing the commercial banks in view to ascertaining the possibility of permitting them to providing credit to disadvantaged Nigerian in the privatization programme.

To highlight the possible ways in which the commercial banks can advert the experiment in the implementation of the  Nigeria enterprises promotion decree of 1972, it is aimed at examining carefully the economic viability of securing credit and share certificate only on the commercial banks portfolio risk.

STATEMENT OF THE PROBLEM:

Many nationalized industrial in Nigeria tend to be inefficiently  managed by ill trained and corrupt managers.

REASONS FOR THE STUDY:     This is to investigate the liquidity problem of commercial banks with a view to ascertaining whether or not commercial banks would validly  provide credit to the disadvantaged Nigerian in privatization programme.

Significance of the study:  this research work will assist in the expectant role to be played by commercial banks towards the privatization of public enterprises

Meaning of privatization:  in the area so many meanings will be introduced in the guide of privation.

Methodology:  In the cause of the study, intend to use secondary data, them to banks like union collect

In secondary data, I intend to visit libraries,  banks, and oral questions in order to get first hand information and the dsign in question.

TABLE OF CONTENT

Title page                                                                                ii

Approval page                                                                        iii

Dedication                                                                               iv

Acknowledgement                                                                             v

Abstract                                                                                  vi

Proposal                                                                                  vii

Table of contents                                                                     ix

CHAPTER ONE

Introduction                                                                            1

1.1            Background o the study                                                 1

1.2            Statement of the problem                                                        2

1.3            Reasons for the study.                                                   4

1.4            Significance of the study                                                         5

1.5            Definition of terms                                                                  6

CHAPTER TWO

Review of related literature                                                     7

2.1            Meaning of privatization.                                                        7

2.2            Objectives of privatization                                             8

2.3            Overview of the role of commercial

banks in privatization                                                    10

2.4            Arguments in favour of privatization                                      18

2.5            Objections to privatization                                            22

2.6            Remedial actions                                                            25

Reference                                                                       29

CHAPTER THREE

Research design and methodology:                                         30

3.1            Sources of data                                                             30

3.2            Location of data                                                            30

3.3            Method of data collection                                             31

References                                                                      32

CHAPTER FOUR               

Findings                                                                                 33

Reference                                                                                35

CHAPTER FIVE

Recommendations and conclusion                                         36

5.1            Recommendations                                                                  36

5.2            Conclusion                                                                    38

Reference                                                                      39

Bibliography                                                                 40

CHAPTER ONE

INTRODUCTION:

1.1    BACKGROUND OF THE STUDY

Banking started in Nigeria a of 1892 when the first commercial bank was introduced in the  country.  With the help of SAP, that is structural Adjustment programme and deregulation more commercial banks came to existence.

Commercial banks has contributed immensely to privatization in our economy.  The word privatization refers to point of changing ownership   of government firms and parastetals into the hand of individuals some of the problem which  these government enterprises encountered are   inadequate fund to operate them, mismanagement of fund etc.  This as a result leads to privatization of these enterprises.

However, commercial banks play important roles in privatization, in the since that, the private sector generate the fund for running the affairs of such enterprises through the commercial bank credit facilities such as loan overdraft etc.  more still, commercial banks help in monitoring  any project when thin private sector took any credit facility from them thereby making it impossible for such fund borrowed on the project to be mismanaged.

Commercial banks act as a “pit of blood” to privatization because when a government enterprise is about to die off the private sector seek for fund to revive such an enterprise from dying off when privatized.

Another point is the issue of capital base. From all point of view, capital base of public enterprise are always higher then that of private ones and as a result of this, when a public enterprises is privatized into a private enterprise, such  private sector must seek for fund from commercial bank to make the capital base to be up to the one required for the privatization as stipulated by the government, infact without the existence of commercial banks, the objectives of privatization will be difficult to be achieved in the economy.