The Effect of Privatization on Economic Growth of Nigeria: 1979 - 2007 in Retrospect

Abstract

The focus of this study was on the effect of privatization on the economic growth and development of Nigeria: 1979-2007 in retrospect. Its aim was to ascertain the relationship between public and private sector spending and Gross Domestic Product (GDP). Ex-post facto research design was adopted for this study. Data gathered were analyzed and tested using the ordinary least square multiple regression statistical model. The results of the test showed that the combination of private and public sector capital spending significantly impacted on the GDP. It was also discovered that there existed a strong and positive relationship between GDP and public sector capital spending. The study consequently recommended that foreign investors should be encouraged to participate in the investment opportunities created by the privatization programme and should be allowed one hundred percent equity share holding in companies established in Nigeria.