Privatisation is also known as deationalisation of the transfer of stae owned enterprises to private ownership for effective management and profit maximization . The aim of privatization is to encourage the business culture in the economy and to introduce competition and free market economy activities.

ADVANTAGES

• The scale od state owned companies generate immediate revenue for the state.
• Privatisation encourages greater efficiency and greater economy and measures industries in the economy.
• Government spending reduces hence reducing the burden of the tax payers
• Enables consumers to have a right choice since many firms produce many unity of goods
• The introduction of private management leads to serious competition there by increasing the quantity of product and services.

DISADVANTAGES

• The government may loss as important source of revenue
• Privatisation does not provide merit goods
• It lead to unemployment most workers in the privatized industries may be retrenched to maintain running cost
• It may lead to the risk od discontinuity because individuals usually go to bankrupt
• Privatisation does not take care of extern abilities because private individuals are only interested in the profit.