The Impact of Privatization and Commercialization on the Performance of Public Enterprises: A Case Study of PHCN, Eket

Privatization and commercialisation have been widely adopted as policy measures to improve the efficiency of public enterprises. In Nigeria, these reforms were implemented to address inefficiencies, financial losses, and poor service delivery in state-owned enterprises. This study examines the impact of privatisation and commercialisation on public enterprises, focusing on the Power Holding Company of Nigeria (PHCN), Eket. The primary objective of this study is to assess whether privatisation and commercialization enhance the efficiency and service delivery of public enterprises while identifying key challenges that may hinder their effectiveness. A descriptive survey research design was employed to collect primary data through structured questionnaires administered to PHCN employees. The study used a census sampling method due to the small population size of 41 employees, with 34 completed questionnaires retrieved and analyzed using percentage distributions and statistical tools. Findings reveal that while 67.65% of respondents agree that privatisation and commercialisation improve efficiency, 58.82% do not believe that privatized organizations necessarily perform better than public enterprises. Furthermore, 76.47% of respondents do not attribute poor performance in public enterprises solely to political interference and resource mismanagement. The study indicates that while privatization and commercialization can lead to increased efficiency, their effectiveness depends on regulatory frameworks, investment in infrastructure, and market competitiveness. Skepticism remains due to poor implementation, monopolistic tendencies, and pricing concerns. Privatization and commercialization have the potential to enhance public enterprise performance, but their success requires transparent governance, strong regulations, and institutional reforms. A holistic approach integrating market-driven policies with government oversight is necessary for sustainable improvements. This study provides empirical evidence on employee perceptions of privatization in Nigeria’s power sector, highlighting the gap between policy intentions and practical outcomes, with recommendations for improving privatization strategies.