Topic: Economic Reform Measures in Nigeria (Commercialization)
Contents
- Meaning of Commercialization
- Advantages of Commercialization
- Disadvantages of Commercialization
- Meaning of Deregulations
- Problems associated with privatization, commercialization and deregulation
Meaning of Commercialization
Commercialization is the practice of running government services like private enterprises. Governments departments are required to conserve or make their own money by charging fees for goods and services that used to be free. They are encouraged to operate to make profit and sustain their operations.
Advantages of Commercialization
- There is better maintenance of infrastructure: Departments generate their own funds from proper use of Government infrastructure
- Increased efficiency: The management embarks on efficient working strategies, in the bid to increase company profit. The establishment works harder, tightens loose ends and sets higher targets.
- Increased profitability: Commercialized government departments or establishments have brighter outlook towards work. This increases skills and intra- company competitions for the most hard-working staff and the best fresh innovation which will lead to increased profits.
- Better operation: In a commercialized venture, better operation is certain due to the targets and profits involved in the business.
Disadvantages of Commercialization
- It can bring about inflation,i.e persistent increase in the price of goods and services
- Money earned from commercialization is not often properly utilized in areas of developing social infrastructure such as good roads network, provision of portable water etc.
- It can give rise to labour and industrial unrest and it can cause the nation to lose billions of naira in resources
Deregulation
Deregulation can be defined as the situation where government releases its control of a sector of the economy to allow as many people as possible to participate in the activities of that sector.
Problems associated with privatization, commercialization and deregulation
Poverty: Poverty is a problem Nigeria is faced with. The measures tend to favour the rich who have the money to buy shares in the business and the inflation caused makes the poor to become poorer and the rich becomes richer, It is not advantageous to the poor.
Illiteracy: According to statistics, a large percentage of Nigerians can neither read nor write and it is very difficult to deal with illiterate people especially with regard to convincing them of the need for privatization, commercialization and deregulation.
