CHAPTER ONE

1.1            BACKGROUND OF THE STUDY

The problem associated with state- owned  enterprises and monopolies are not peculiar to Nigeria it is true that many developing countries have overcome the problems through a well designed and simple minded pursuit of privatization.

It is important to observe that the was a times when it was considered sound economic policy for government to establish and invest in statutory corporations and state owned companies socialism  existed side be side with capitalism. It is also good to note that it took many years to accomplish the privatization of British telecoms which is regarded as   a world leader by all standards (business times Dec 3-9,2001.    

1.2            PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER

According to Enugu (1991:191) the fact that state owned business enterprise have failed woefully in Nigeria cannot be doubted.

Most of the problem that associate with Nigeria telecommunication limited are:

1. Most of the manager is NITEL Enugu zonal district take advantage of their position to gain at the expense of the organization through misappropriation of funds embezzlement favouritism and bad leadership
2.   The constant and persistent changes in the management team of NITEL has had far reaching effects on the performance of the organizaiton
3. The problem of power tussle and internal problems exist between the management team and even among other employees of NITEL.
4. The Nigeria telecommunication limited are equipped with  wrong and obsolete technological equipments hardly serviceable exchange switches.
5. Lack of maintenance and mismanagement of facilities and human resources.

1.3            PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH

The study will be concerned on many change concerning the privatization of Nigeria telecommunication limited.

1. The first problem the study will be concerned on is privatization of Nigeria telecommunication limited will change the quality of
2. The second problem is the problem of increase in tariffs imposed on customers
3. The third problem the study will be concerned with is the problem of financial management of the organizaiton.
4. The fourth problem is the problem of loss of job by the staff.

1.4            THE IMPORTANCE OF STUDYING THE AREA

The study is very timely especially today that all hand are on deck to enhance the development and growth of Nigeria’s economy  through privatization of some sectors.

It was expected that the new management of NITEL the PENTESCOPE Telecommunication will revive the organization by changing and study some of the problems of the organizaiton.

Federal government of Nigeria after accessing  their performance found out that the new to the sector.

Finally the federal government retrieved the contract agreement and fined them the study will help out to seek for another company that can bid for the contract and also help create job for indigenes  of this country   

1.5            DEFINITION OF IMPORTANT TERMS

ENTERPRISE:   Business activity developed and managed by individual rather than the state the ability imagination and desire to create out new project or activities

MANAGEMENT:        The control and making of decision in a business or similar organizaiton. The process of dealing with or controlling people or thing.

PRIVATISATION:      It is the transfer of some shares from state control or ownership private ownership.

REFERENCE

Akin- George, J (1988) Privatization and Commercialization Design and

Implementation for Effective Result.

Enudu T.O (1999) Business Policy An Introduction Analysis New General

Books

Nation Council on Imperative of Privatization”

Privatization (1999) A Statement by President Olusegu Obasanjo  on the

Occasion of the Inauguration of Nation Council on Privatization Abuja  

The Sun Newspaper  (2005) Revoke of Contract Agreement form PENT

SCOPE Page 4

Udeh Mike (2001) NITEL Privatization: an Analysis Business Times

Commentary