PRIVATIZATION AND WORKERS PRODUCTIVITY IN PUBLIC CORPORATIONS IN NIGERIA

ABSTRACT

Privatization has been widely adopted as a strategy for improving efficiency in public corporations, yet its impact on worker productivity remains a subject of debate, particularly in developing economies like Nigeria. This study examines the effects of privatization on worker productivity in public corporations, using the Nigerian National Petroleum Corporation (NNPC) as a case study. A descriptive survey design was employed, targeting 150 respondents, including NNPC employees, policymakers, and industry experts. Primary data was collected through structured questionnaires and analyzed using E-Views 12, applying regression analysis to test the study’s hypotheses. The findings reveal a significant positive relationship between privatization and worker productivity, with privatization having the strongest impact (coefficient = 0.621), followed by training and skill development (0.552) and worker morale and job satisfaction (0.468). The regression model explains 72.1% of the variation in worker productivity, indicating that privatization, along with improved training and enhanced morale, significantly contributes to workforce efficiency. The study concludes that privatization has led to increased productivity at NNPC, though challenges such as job security concerns and service delivery inefficiencies persist. It recommends that policymakers ensure a balance between privatization-driven efficiency and employee welfare by implementing robust training programs, fair labor policies, and enhanced oversight mechanisms to sustain workforce productivity in privatized entities.