Effect of Privatization on Economic Growth of Nigeria: 1980-2014 in Retrospect

Abstract

Privatization is one singular economic policy that has generated many controversies in Nigeria. While some argued in favour of it, others antagonise its introduction in the country. Thus, the broad objective of this study is to discuss the impact of privatization on Nigerian economic growth. The specific objectives include to: (i) examine the nature of privatization in Nigeria; (ii) analyze the pre and post privatization effect on the economy; (iii) assess the effect of capital expenditure, investment and inflation rate on Gross Domestic Product (GDP). The study adopted Ex-post facto research design in examining the effect of privatization on the Nigerian economy from 1980 - 2014. Data were collected from secondary sources through the Central Bank of Nigeria and National Bureau of Statistics, and were analyzed and tested using the multiple regression analysis. Result emanating from this study reveals that the combinations of capital expenditure (CAPEXP), investment (INV) and inflation rate (INF) significantly impacted on the GDP. The study therefore recommends effective regulatory framework, observation of transparency, accountability and due process in the implementation of the privatization programme, as well as judicious utilization of privatization proceeds.

Keywords: Privatization, Economic Growth, Time Series, GDP, Nigeria