New Public Management Reforms and the Performance of Public Enterprises: An Assessment of Privatization in Nigeria's Telecommunications Sector

Abstract

The implementation of New Public Management (NPM) reforms, particularly privatization,
has been a significant strategy adopted by governments worldwide to enhance the
performance of public enterprises. This article focuses on the telecommunications sector in
Nigeria, where privatization was introduced as part of broader economic reforms in the early
2000s. The objective is to assess the influence of privatization on the performance of public
enterprises within this sector. The article is anchored on public choice theory. It is qualitative
in nature, relying on secondary sources of data, such as, journals, textbooks, official
publications and internet materials. It observes that privatization of public enterprises in the
telecommunication sector in Nigeria has led to improvements in operational efficiency,
increased investment inflows, and expanded service coverage. However, challenges such as
regulatory effectiveness, equity in service provision, and the socio-economic impact on
marginalized populations remain significant concerns. It contributes to the broader discourse
on NPM reforms by providing empirical insights into the complexities and outcomes of
privatization within Nigeria's telecommunications sector. It concludes with policy
recommendations aimed at optimizing the benefits of privatization while addressing its
associated challenges to ensure sustainable and inclusive growth in the sector.