1.1      BACKGROUND OF THE STUDY

To be able to transform into an industrialized economy an underdeveloped economy has to privately and commercially develop.

The importance of establishing public enterprises or corporations began during the 19th century with the British Telecom in 1884 under the telecommunication act and gained a worldwide support in Britain. Thereafter several nations particularly those in Africa, have come to embrace the principle as a way of eliminating low performance and inefficiency in the public sector.

Following   the     trend,    the     Nigerian  economy  has    come    to

embrace     privatization         as     a     cardinal        principle        of    the      state‟s

economic policy. Over the years, the Nigerian government has encouraged the development of the public sector since independence in 1960 and particularly 1970s but has not been successful because government owned industries and establishments remain citadels of corruption.