Privatization and Deregulation: A Veritable Tool for Economic Develiopment

The sale could be carried our through stock exchange. Which is the must politically acceptable method of sale? Other forms of sale are sales to the employees of the enterprise or sale by private placing. Whatever method is used, all relevant documents and circumstances of the enterprises must be disclosed and put right before sale.

In addition to preparation of the enterprise for the market is the need to identity relevant interest groups and satisfy them. These include workers, management staff, and prospective investors. Commentators and opponents of privatization workers support must be entrusted and management staff should be involved to the greatest extent possible in other to neutralize possible opposition.

The support of the general public including the opponent of privatization should be secured. This could be achieved through programmes of public information in which the case of privatization could be argued effectively and enthusiastically.

Ordinary citizen must know the overall economics reason for privatization. He should know what as a citizen, stands to gain by buying shares in such enterprise. Information package should include projection of profitability in terms of dividends and future capitals Gain. Information should also be directed at dispelling ignorance and misconception that surround privatization. A common misconception is those privatizations will make rich richer, for they will use their connection to buy most of the enterprises at give-away prices.

Other misconceptions are the possible high cost of goods and services and reduction in staff strength when enterprise come under the management of private sector. These is a short  term view as the privatization  of  telecommunication has proved the opponents of privatization  wrong in terms of increase  prices of goods and service rendered and reduction of staff strength. Instead, telecommunication industry has provided employment for many Nigerian even more than ever envisaged since its privatization. In addition to provision of employment opportunities, it also enhances business contacts as to the issue of high prices of goods and services, market forces would prevail. After all, the need to privatize arise due to desire to transfer management of enterprise from the bureaucratic regulation of the public sector to the competition of market forces, which ensure that consumers get the best price because no producer would want to price himself out of market, there is no doubt that at the initial stage when survival is  paramount;  the must viable solution open to a new  owner is to improve the quality  of goods services, reduce cost and where possible reduce the staff strength and ensure that the performance of those that remain go up. But as the enterprise becomes viable and successful, more staff would be employed.

Everything possible should be done to give privatization widespread popular appeal. A nation whose objective includes achieving a rising level of national prosperity, a greater national economic power and an open competitive society would regard privatization and deregulation as attractive option in her development process.