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The focus on Privatization of Corporate enterprises is relatively recent in Nigeria.  The prominence in economic programs of most developing countries since the 1980’s is due to the need to reduce Public sector deficits and financial losses arising from gross inefficiencies of the public Enterprises.  Privatization attracts substantial amount of foreign investment inflows and new technological growth bringing about economic growth and reformation.

          The effective implementation of privatization program of a Corporate Enterprise such as Nitel LTD requires a computer-based system.

          This research work is aimed at designing and implementing an automated system that would eliminate some of the problem and draw backs associated with the manual procedures for the privatization of a corporate enterprise.




Privatization is the process of transferring ownership of a business, enterprise, agency, public service, or public property from the public sector (a government) to the private sector, either to a business that operates for profit or to a nonprofit organization. It may also mean the government outsourcing of services or functions to private firms, for example, revenue collection, law enforcement, and prison management.

Privatization may also describe ownership changes not involving the public/government sector. The first is the purchase of all outstanding shares of a publicly traded company by private investors. The shares are then no longer traded at a stock exchange, as the company became private through private equity. The second such type of privatization is the demutualization of a mutual organization or cooperative in order to form a joint-stock company.

The issue of privatization has been a subject of intense global debate in recent years. In Africa, it has remained highly controversial as well as confusing. Privatization in Nigeria has not been a popular and an accepted reform. It has received so much criticism from labor, academia and individuals.

The process involved in privatization is also a very tedious one. Private individuals who has what it takes to own and control a public enterprise are put into rigorous tasks which can at the end frustrate the individual


The government has over the years been burdened with the process of privatization. Its manual methods of operation has at the long run caused some problems which would have been reduced if done by an automated system. Like we already know,  privatization involves redefining the role of the government by having it disengage from those activities which are best handled by the private sector, with the overall objective of achieving economic efficiency and conceptually. The commercialization and privatization degree (FRN, 1988) perceive privatization as: - “the transfer of government owned shareholding in designated enterprises to the private shareholders, comprising individuals and corporate bodies”.

The success of the program depends on a well-designed privatization strategy, which includes:

1. Defining the broad extent of privatization;

2. Stating clearly the political, economic and social objective to be achieved;

3. Establishing clear guidelines or criteria for evaluations

4. Selecting techniques;

5. Ensuring transparency and accountability in the privatization process and which competitive bidding to the fullest extent possible;

6. Building marketing up frost in each privatization operation in order to stimulate potential interest among investors and there to enhance the value of the public enterprise to be privatized.

7. Promoting employee participation in the privatization process through the allocation of a proportion of corporate shares;

8. Establishing procedure for monitoring the progress all results of privatization etc;

The above strategies cannot be achieved manually; many privatization programs have suffered from poor design, in adequate preparation, and weak implementation.  This is clearly evidenced by the long average time its complete transaction.  It is based on these drawbacks that the need for computerization arise.

The study will focus on the application of computerized procedures for privatization of a corporate enterprise using the Nigerian Telecommunications Limited (NITEL LTD) as a case study.


The number of privatization going on the country has been much nowadays. Using the old method of getting the documents of the government owned enterprise and making the private owners to fill forms, sign and the rest has posed a lot of problem to the smooth transition of ownership.

It’s always easy to misplace an important document, get it soiled or even damaged during the process of privatization.

 Institutions set up by the government to handle privatization process at the long run have an accumulated database of papers stored in a room. This makes accessing a particular document will require scanning through a whole lot of documents to reach it.


          The aims and objectives of the project work are:

i.                   To create a database for the storage of all information requirements for the privatization of the enterprise.

ii.                 To eliminate all the darn backs of manual techniques of data collection and record keeping into computerized system.

iii.              Assist in the planning, designing and implementation of education and training programs for corporate groups.

iv.              To provide organizational efficiency through computerization.


        The scope of the project emphasizes on the area of computerized procedures for the privatization of a corporate enterprises, computerized procedures in birlt to owning out a single activity at a time that is the human activity of descending the most viable project among a giving set of attractive.

        Therefore, the study will focus on the application of computer on the privatization of the Nigerian Telecommunications limited (NITEL LTD).


        The purpose is to design a database that will computerize the procedures used in privatizing a corporate enterprise.  Secondly analyzing the current system to determine the objectives and detect the various impeachments in achieving them.


        The following are some factors, which are acting as an impeachment or constraints to the progress of the project work, these are;

        a.        Time:  There is not enough time on the part of the researcher due to academic work.

        b.        Lack of Documented materials:  It was difficult to start the project initially because reference materials at my disposal are limited.

        c.         Insufficient information from Nitel staff also pose as a constraint.

        d.        Financial constraint is another factors that limited the researcher in owning out this project effectively.

        e.         The likelihood of the privatization exercise not implemented due to corrupt practices by officials.

        f.         Lack of analyst:  this also contributed as a constraint to the progress of the project.  No one was there to analyze or to break the research into the simplest form to enable the researcher to carry out the work with ease.


        Due to insufficient information the following assumptions were considered:-

        - The recording of the procedures for the privatization of NITEL LTD has not been computerized.

        - The people that are going to use the software are computer literature.

        - The hardware for the installation of the software has been acquired.


        This work will attempt to define some basic terminology and also explain various terms that will be used in this study.

·        Knowledge Base: Is a computer accessible collection of knowledge about a subject in a variety of forms, such as facts and rules of inference, frames and objects.

·        Privatization: Privatization can be defined as the systematic transfer of appropriate functions, activities or property from the public sector to the private sector, where services (Production and consumption) can be regulated more efficiently by the market and prince mechanism.

·        Investment:          It may be defined, as the exchange of present resources could be liquid capital or assets for an uncertain amount of future resources.

·        Enterprises: Is the act of carrying out a daring plan.

·        Corporate: Is a group who the united and given the power by law to do business acting as one person.

·        Expert system (ES): An expert system is a specialized computer package that can perform the function of human expert.

·        Full Privatization: Means divestment by the federal government of all its functionaries’ exposures in the designated enterprises.

·        Partial Privatization:    Means divestment by the federal government of part of its financial exposures in the designated enterprises.

·        Commercialization: Commercialization means that enterprises so designated will be expected to operate profitably on a commercial basis and be able to raise funds from the capital market without government guarantee.  Such enterprises are expected to use private sector procedures in the running of their businesses.

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