Government 2009 JAMB Past Questions - Question 5: Privatization and commercialization programmes in Nigeria have

Correct Answer

B

Explanation

;Privatization and Commercialization programmes in Nigeria h'ave deemphasi.iedgovernment ownership. This should be clearly "een when we look at therespective definitions of Privatization and Commercialization. Privatization: This may be defined as thereduction of the burden borne by the government in the provision of goods and services b transferring some of this to the private sector. Fullprivatizatic means that government will sell c its controlling shares to thepriva:e sector while partial privatizatic meansthatreductionc" government shares from 60 to 41 percent. Commercialization: Thisis the iteration of the capital base of gevernment company and its modes ofoperation to enable engage in business for the sole purpose of makingprofits. Companies under full commercialization will no more receive any subvention frorthe government while those under partial commercializations while those under partial commercialization will receive government subvention but will be expected to generate, at least 50 percent of theirfinancia needs from their own operations.