CHAPTER ONE

INTRODUCTION:

1.1     BACKGROUND OF THE STUDY

          The privatization programme of the fist phase was said to benefit many Nigerians who were given the opportunity to purchase shares offered for sale by way of public offer. Subscription of shares during the phase one was largely successful with many public offers. However, there were a large number of Nigerian citizens who due to difficult economic realities in their present time were unable to put aside a few thousand naira required to purchase a small share holding in the enterprises which were offered for sale in the course of the privatization programme.

          Recently, the federal government have come up with a means whereby the low-income earners and rural dwellers will participate in the on-going privatization programme. Today, banks have been instructed to give out loans without collaterals for the purchase of share up to N10,000 worth of shares within each five year period. This is being carried out by privatization share purchase loan scheme (PSPLS) which requires that one registers and later apply for share purchase and repayment on be through divided, cash, conversion of bonuses and right and sale of all or part of their allotments in the secondary market.

          This new development in the privatization programmer early motivated me to carry out a project research on the topic: “The problems and prospects of privatization in Nigeria” using Nigeria Breweries Plc as case study.

          In such direction I am of the opinion that at the end of the work, it will instigate the reader to participate in the on-going privatization programme.