Privatization and Poverty Reduction in Nigeria

Following on the ‘success ‘of economic reforms in Central and Eastern Europe, best practice privatization re-emerged in most countries in the Sub-Saharan Africa during the 1990s. In Nigeria, privatization came as integral parts of Adjustment credits and was aimed at enhancing the efficiency of resource allocation of government. The core objectives are reducing fiscal deficits, building a broader tax base, attracting more investment and growing the private sector. But macroeconomic remedies merely solve the needs of the poor in the short run. Criticism centres on the alleged adverse effects of privatization on employment and the poor, as well as the perceptions of rampant corruption in the privatization process especially in developing countries. Whether this criticism is justified is a different thing entirely.