Legal Environment for Privatization in Nigeria

AbstractFor a successful change from centrally planned economy to a market economy, governments often take the appropriate legal measures to ensure that the legal system provides appropriate and sufficient measures for a market friendly environment. In other words legislation should provide the legal basis for the market friendly environment. A micro-legal environment conducive to private sector development must clearly be in place for successful divestiture (privatization). Any form of discrimination against the private sector, if exists, should be abolished.Thus the development of legislation and enforcement of company law, rules on trade, of ownership rights, bankruptcy legislation etc. often play important roles in influencing the distribution of rights and thus for the development of corporate governance.This article explains that Nigeria has reformed all relevant legislations in her efforts at ensuring a suitable legal environment for her privatization programme.