International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Effectiveness of Pricing Policy in Nigerian Public Sector Enterprises: A Theoretic Approach

Pricing Policy of Public Sector Enterprises (PSEs) is about the general theories of pricing the goods and services provided by government owned enterprises. The pricing policies adopted are determined by the objective behind the establishment of the Public Sector Enterprises. This paper examines the different pricing methods based on the objectives of the public enterprises, the problems of these methods and evaluates other methods that could serve as solution to those problems. The data sourced are from documentary sources such as textbooks, journal articles, and other forms of publications. The paper sees determinants of pricing policy in Nigerian public sector enterprises to be among others, the financial and non- financial objectives for establishing the enterprises, the market structure, the nature of the economy and its vertical and horizontal linkages for a specific commodity. The paper condemns the profit - based pricing policy being contemplated for Nigerian public enterprises and recommends the no-profit no-loss pricing policy, as it is consistent with the objective for establishing public sector enterprises.

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