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Abstract
This study examines the reform of agro-allied parastatals in Nigeria and determine the impact financially, economically and
socially. Three enterprises, Flour Mills of Nigeria Limited (FMNL), Okitipupa Oil Palm Company (OOPC) and Nichemtex
Industries Limited (NIL), were privatized in Nigeria under a reform programme aimed at improving the performance of
agribusinesses in the country. The exercise was successfully conducted through public offer of shares and private placement.
The reform led to an improvement in profitability, productivity, financial leverage and liquidity position of the enterprises. The
social impact of privatization was also favourable. It has no adverse consequences on job security, level of employment and
participation of employees in trade union matters. Successful implementation of the reform was due to several factors including
high level of professional competence and dedication of officials connected with the reform, a high degree of transparency
and strict compliance with laid down guidelines. At the enterprise level, the positive changes recorded by the enterprises
came about through the adoption of a number of coping strategies such as the maintenance of diverse product mix, expansion
of export potentials and upgrading of product quality, improved marketing management, technological restructuring and
improved techniques of sourcing raw materials. At the macro level, some policy actions such as trade policy reforms and price
liberalization also played significant role in enhancing the performance of the enterprises after privatization. © 2001 Elsevier
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