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Difficulty: EasyIndigenization, Privatization, and Commercialization Policies

Which economic policy in Nigeria involves re-organizing state-owned enterprises to operate as profit-oriented entities while retaining full government ownership?

  1. A
    Privatization
  2. CommercializationAnswer
  3. C
    Indigenization
  4. D
    Import substitution

Answer

Commercialization is the policy that restructures state-owned enterprises to run on commercial principles and generate profit while maintaining government ownership.
Commercialization is the economic reform policy where government-owned enterprises are restructured to operate profit-oriented and self-sustaining operations without transferring equity ownership to private entities.

Step-by-Step Solution

1
Identify the key requirement of the policy mentioned in the stem.
The policy requires public enterprises to operate on commercial terms and make profits while remaining fully owned by the state.
Understanding the distinction between ownership transfer and operational restructuring is essential for classifying Nigerian economic reform policies.
2
Evaluate the definition of Commercialization against the requirement.
Commercialization aims to increase efficiency and financial autonomy of public utilities without selling equity to private investors.
State-owned firms under commercialization operate like private commercial businesses but remain government assets.

Key Concept

Commercialization of Public Enterprises
Estimated Time:45s
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Topics

Indigenization, Privatization, and Commercialization Policies