The financial and operational performance of privatized firms in Nigeria: evidence from two fully privatized agro-allied firms

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Periodical article

Title:	The financial and operational performance of privatized firms in Nigeria: evidence from two fully privatized agro-allied firms
Author:	Udeaja, Elias Anachioke
Year:	2001
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	43
Issue:	1
Pages:	105-123
Language:	English
Geographic term:	Nigeria
Subjects:	agroindustry privatization palm oil
Abstract:	In 1986, Nigeria adopted a policy of privatizing public enterprises as an integral part of the Structural Adjustment Programmes (SAPs). Drawing on evidence from two fully privatized agro-allied firms - the Nigerian Yeast and Alcohol Manufacturing Company (NIYAMCO) and the Okomu Oil Palm Company, both privatized in 1990 - this paper assesses the financial and operational efficiency of the privatization of public enterprises in Nigeria. It appears that profitability, operational efficiency, output, sales, labour's share of the value-added in terms of salary and wages and dividend increased. Capital expenditure rose for Okomu, but fell for NIYAMCO. Revenue to the government in the form of taxation improved, and there was no record of subsidy in the period after privatization. Based on these results, the paper concludes with policy recommendations on how to improve the privatization process and its outcome. Bibliogr., sum. [ASC Leiden abstract]