Privatization and commercialization of public enterprise in Nigeria is necessitated by

The privatization and commercialization of public enterprises in Nigeria is necessitated by their operational inefficiency. This means that these public enterprises are not functioning effectively and efficiently, which results in poor service delivery, financial losses, and a drain on the country's resources. The government has realized that it cannot continue to bear the burden of funding these inefficient public enterprises, and it has decided to transfer ownership and management to private entities through privatization and commercialization. This process is intended to improve the efficiency and effectiveness of these enterprises by injecting private sector expertise and resources, promoting competition, and reducing the government's financial burden. While international organizations such as the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF) may have played a role in shaping Nigeria's privatization and commercialization policies, the main driver of these policies is the need to improve the performance of public enterprises and reduce the government's financial burden.