Privatization and commercialization programmes ... - JAMB Government 2009 Question

Privatization and Commercialization programmes in Nigeria have de-emphasized government ownership. This should be clearly seen when we look at the respective definitions of Privatization and Commercialization.

Privatization: This may be defined as the reduction of the burden borne by the government in the provision of goods and services by transferring some of this to the private sector. Full privatization means that government will sell of its controlling shares to the private sector while partial privatization means that reduction of government shares from 60 to 40 percent.

Commercialization: This is the alteration of the capital base of a government company and its modes of operation to enable it engage in business for the sole purpose of making profits.
Companies under full commercialization will no more receive any subvention from the government while those under those under partial commercialization will receive government subvention but will be expected to generate, at least 50 percent of their financial needs from their own operations.