Abstract

I. I. Omoleke *, B. Salawu and A. O. Hassan

The Federal Government establishment of and subsequent growth of state-owned enterprises (SOEs) in compliance with the Keynesian theoretical paradigm, was for over two decades a fundamental component of development strategy in Nigeria. The SOEs were needed to provide social services and utilities and serve as engine of social and economic development. However, they served the purpose for which they were established for about a decade, and then their performance declined. The government of Nigeria then opted for privatization policy as a result of inefficiency and ineffectiveness of the SOEs. Privatization policy is a global principle and guideline that de invest public ownership of SOEs and given rise to private ownership. The aim of this paper therefore, is to investigate the socioeconomic and legal implications of the Nigeria Privatisation Policy. The methodology employed in this paper is to review the existing literature on SOEs and privatization policy in Nigeria and beef it up with empirical investigation of 50 consumers of the product of the SOEs in energy sector. The result from the review of literature and empirical study revealed that privatization policy will enhance foreign direct investment in Nigeria subject to positive economic and technological milieu in the country. The findings also revealed that the grassroot (the poor) are likely to suffer as they will no longer enjoy subsidized products and services of the SOEs slated for privatization while conversely it will further enhance socio-economic condition/hegemony of the bourgeoisie. Finally, the legal review revealed that the privatized SOEs will undergo legal and structural transformations.