Gbawe:

Further Privatization is indeed my submission but only if guided by political will that will ensure , as seen across Africa, that we do not gain 'mutton dressed as Lamb'.

This kinda sounds self contradictory to me cos on the one hand you've completely derided the GEJ govt for being ruthlessly corrupt, dishonest and incapable of implementing even the simplest of policies while at the same time you've not failed to bash the govt for hesitating on its inherited Privatization programme, so what gives? Do you actually trust the govt enough to want them to start selling our nationally strategic parastatals immediately? Perhaps something you're never going to admit has changed between OBJ and now.

Gbawe:

is the way forward. If any of you , even with our challenges , think that World class Companies , conditions permitting ,  would not be eager to get their foot in the door of a Nation , on paper, predicted to still possess preposterous investment and growth prospects , then please let me point you to someone who will sell you a flat in London for £900.00 !!!

 Dont be deceived, it takes much more than double digit economic growth and tremendous prospects to get foreign investors into a country. China for all the growth it has managed still has serious issues attracting investment from the West and maybe you've got to study the Asian financial crisis of the 90's to understand the dangers of opening up a market and transparency as required by most of these world class companies and investors. Ask yourself why Western investors are not rushing to the new frontier market with their monies even with all the problems currently bedevilling Western economies, fact is no one - and Nigeria shouldnt be the first - is willing to open up as much as they require to start poaching. I guess for now we are stuck with those we've got and the only solution seems to be what GEJ is proferring; Adequate monitoring and possible sanctions so pls put your ego aside and give him credit!

wesley80:

This kinda sounds self contradictory to me cos on the one hand you've completely derided the GEJ govt for being ruthlessly corrupt, dishonest and incapable of implementing even the simplest of policies while at the same time you've not failed to bash the govt for hesitating on its inherited Privatization programme, so what gives? Do you actually trust the govt enough to want them to start selling our nationally strategic parastatals immediately? Perhaps something you're never going to admit has changed between OBJ and now.

My brother, no contradiction at all. I make my submissions with the proviso that political will and sincerity is present. Minus that, and with what I think of GEJ, you don't need to be a rocket Scientist to fathom that I am resigned to the next 4 years being a period of 'bumper harvest' for the AGIPs and owners of Nigeria while Nigerians get nothing but more suffering and platitudes .

Team GEJ won and I accept that . He has earned the electoral right to take Nigeria in any direction he wants . Nonetheless , that acceptance of his win does not mean we should all shut up when we see GEJ, as he has done many times, playing to the gallery vacuously and deceitfully .

Privatization , implemented transparently and meritoriously , has not failed and GEJ is deceitful in claiming this to be the case merely because it suits his agenda. Privatization , when transparent and sincere, is highly desirable for our Nation because the Government has proven itself to be a disaster at running certain sectors. Despite challenges , Nigeria still has attractiveness , for many reasons, that would sway potential first class investors if the Nigerian Government is not on its usual double mission of deceit  - i.e court top companies in public yet deliberately carry on , underground, practices that ensure most top Companies will stay away. 

Privatization cannot therefore [b]ever [/b]be condemned in its entirety simply because that suits the agenda of a President full of deceit and used to going back on his pledges and promises. Having gained 4 years, it is obvious that GEJ is trying to re-invent the wheel to suit how he wants the AGIPs to take over Nigeria in a profligate, outdated , wasteful and totally inappropriate model of Governance.

I like how this thread is titled on the homepage.

Bawss1:

I like how this thread is titled on the homepage. 

I like it too because it is the truth i.e " PDP's Corrupt & Insincere Approach To Privatization Has Failed"

ekt_bear:

To be fair, Otedola is a crony that actually will make businesses work. So probably not best to give him a sweetheart deal, but at least the end result will be that the business functions.

This is still better than the gov't holding onto it and having the business fail. Not the best of all options, though.

Is AP of Forte Oil really doing so well. Track the price of the share price over the past 3 years and you will be amazed
BTW the FD said they made a loss and Otedola said the account must be doctored to show a profit
He added that Otedola and his friends did not pay for shares worth over N12.5b
Inspite of his petitions to police, SEC etc, Otedola is walking free
the irony of it all, is that the FD was arrested and held in custody for several weeks for inciting people against Otedola
Note, we say negative things about GEJ (whose actions affect us all) here, but nobody has detained us for incitement, but Otedola who is perhaps fleecing only the shareholders of (investors in) AP is at the risk of incitement

Interesting.

Once again, we are confronted with more evidence of the sleight of hand (and foot and mouth and all other body parts) of the PDP and its current manifestation (in the form of the GEJ administration). The problem now, according to the man in charge, is "unserious investors".

Not a venal Nigerian political party (the PDP) with the mentality of sea pirates. Not PDP hacks determined to grab their share before it all comes crashing down.Not bent Nigerian bureaucrats. Not corpulent Nigerian plutocrats. Not the most insiduous strain of home grown, crony capitalism ever to take root in sub-Saharan Africa. Not a PDP 'reform' program rigged to fail from the word go. Not an unholy alliance of politicians and businessmen determined to privatize the gains and socialize the losses.

No.

The problem now is "unserious investors".

Banality personified.      

You see, some of these things we see in this strange place called the FRN (Federal Republic of Nigeria) would be funny if they were not so tragic. I can see where this is going - it seems the GEJ administration wants to provoke a debate in which the advocates and the opponents of so-called reform (or privatization or whatever the hell you want to call it) engage each other in lengthy theoretical arguments over the propriety of statism versus privatisation. This will serve as a distraction while the federal behemoth continues to munch quietly away on the commonwealth.

I put it to you, team GEJ: the issue with you and the party your principal represents is ethical. Not ideological. Your party's basic philosophy (if it can be called that) is "the more unethical, the better". If indeed, Nigeria's laws were to be enforced, most PDP officials (and their collaborators in the civil service and the private sector) would be trussed up against diesel drums waiting for the phalanx of marksmen to take their positions. You know this to be true. I know it to be true. Even the dead in the grave know this to be true.      

What I also know to be true is:

If it (the PDP) were an ethical party running a left-of-centre government, then the men responsible for running public enterprises into the ground would have been twisting in the wind by now.

If it (the PDP) were an ethical party running a right-of-centre government, then the men responsible for running a fraudulent and deceitful 'privatisation' programme would have been sitting pretty in their jail cells right now.

Tell your principal to stop the obfuscation. Some of us know who he is and exactly what he stands for.

Unserious investors indeed.      

@ Gbawe,

You and I hold opposing views on some aspects of privatisation and reform. I do not agree with the notion that public enterprises are primed to fail. I do accept however, that public enterprises in Nigeria have failed miserably.

My view, which unsurprisingly is an unpopular one, is that someone, somewhere has to pay for the mismanagement of Nigeria's public enterprises. Till that is done and the slate is wiped clean, we will continue to have, as you so eloquently put it, 'mutton dressed as lamb".

Having said that, you are one of the few to have seen through the subterfuge of the PDP and its cronies, long ago. There are times when I go through your posts and your many challenges thrown to the forces of reaction on this board. And I wonder why you even bother. Nigerians have an extreme case of the Stockholm Syndrome. They made their choice in April and they must be prepared to live with the consequences.

But keep up the good work. Maybe the light will shine through someday.

Basically PDP has failed

VolvoS60:

I do not agree with the notion that public enterprises are primed to fail.

We are on the same page and I agree with you. Nonetheless , for where we are and for what we are, transparently conceding some of our parastatals to competent private hands could make some vital sectors to work as they should. Systematic rot , over many decades , means that PHCN , for example, must be fundamentally reformed if it is to perform as an efficient Public entity. Do we have the time for that considering that our electrification needs are dire and impeding our national progress greatly?

My view, which unsurprisingly is an unpopular one, is that someone, somewhere has to pay for the mismanagement of Nigeria's public enterprises. Till that is done and the slate is wiped clean, we will continue to have, as you so eloquently put it, 'mutton dressed as lamb".

I concur but that cannot happen while the same set of like-minded 'padis' pass the baton to each other every 4 to 8 years . Naturally, they have each others back , so impunity continues. A very crude yet effective strategy.

Having said that, you are one of the few to have seen through the subterfuge of the PDP and its cronies, long ago. There are times when I go through your posts and your many challenges thrown to the forces of reaction on this board. And I wonder why you even bother. Nigerians have an extreme case of the Stockholm Syndrome. They made their choice in April and they must be prepared to live with the consequences.

But keep up the good work. Maybe the light will shine through someday.

My brother , I don't even understand it myself sometimes . I guess my motivation and passion stems from how the sufferings of Nigerians never fails to move me deeply.

@ Topic

It is unfair to say that privatization failed in Nigeria. There are many formerly mismanaged government owned companies that are now doing well under private hands. Examples include Oando, Conoil, Nicon, Nigeria Reinsurance, Unity Bank, BCC, Ashaka, Indorama, Notore etc. There are a few that dying primarily due to unfavorable government policies towards them e.g. PAN, Delta Steel etc

The reason our corrupt elites are crying out about privatization is because their avenues for illicit gain and patronage is gone. This includes Labor who oppose privatization because their inept and corrupt members will be thrown out. That is why Nitel staff despite their trumpeted "competence" can't find places in private telcos and are instead dying to receive salary backlog from a mismanaged company that packed up years ago.

Government run enterprises are primed to fail in Nigeria because they don't operate under private sector discipline. They are hamstrung by:

1) hiring based on federal character and quota so mediocres and inept people man positions they have no business in e.g Anenih, Bode George etc
2) Management and staff see the enterprises as cash cows to be looted e.g inflated contracts, ghost workers etc
3) The public see their goods and services as socio-political thereby demanding uneconomic pricing e.g fuel, electricity, water, tuition etc

There are many more but the above are part of what is colloquially known as the Nigerian factor.

Good roads have failed Nigeria too because they have failed to construct and maintain themselves in much of Nigeria.

since 1999, we v had 3 different presidents and one thing is common of which our able messiah(president) just mentioned it in the article - FAILURE.

Technically I think its not the business or concern of government to check the successes or failure of private companies. Concessions I agree but private, no. If Dangote industry fails, its not the government's business beyond the fact of tax revenue losses and perhaps unemployment figures. All government needs to do is to create the enabling environment and check for malpractices by regulatory agencies, period. This is suspect may be the first step in re-nationalization obviously backed by enemies of the country, cliques seeking corruptly acquired riches through government patronage. The very reasons that up-til today the power and petroleum sector remains under government control while billions are wasted in so-called investments.

If a company fold for its inability to generate revenues, conduct business and offer tangible products and services, Nigerians probably do not need them. Not all government companies privatised were worthwhile anyway, some have been overtaken by technology such as NITEL and should just be allowed to die. We need to develop the culture of paying our bills in this country for the day crude oil will run its course and one of these measures is to guarantee free enterprise. GEJ should not review anything. Let the private sector determines who lives and who dies. That is free market which guarantees free-dom. A lot better than free stuff that perpetuates slavery.

^
What GEJ is saying is that there have been corrupt practices in the past that led to govt parastatals being sold to unsuitable people. That is what led companies built with Nigeria's money to simply crumble away with nothing to show and no improved value for the populace. There must be accountability to the Nigerian people and thats the line GEJ is pushing.
In addition to GEJ's words, there is a Senate probe into what went on in the recent past, and I believe it will lead to several criminal convictions.

Government MUST be accountable to the people, we cannot continue to have shady deals that cost the Nigerian people dearly; that is GEJ's line.

Beaf:

^
What GEJ is saying is that there have been corrupt practices in the past that led to govt parastatals being sold to unsuitable people. That is what led companies built with Nigeria's money to simply crumble away with nothing to show and no improved value for the populace. There must be accountability to the Nigerian people and thats the line GEJ is pushing.
In addition to GEJ's words, there is a Senate probe into what went on in the recent past, and I believe it will lead to several criminal convictions.

Government MUST be accountable to the people, we cannot continue to have shady deals that cost the Nigerian people dearly; that is GEJ's line.

Word! GEJ just keeps shooting in the right direction. Very Wise Leadership.

@Wesley80.

My brother, nothing brings home the truth more than real and current analogy/illustrations. Below , Okonjo-Iweala is laudably soliciting for FDI (foreign direct investment) by lobbying the likes of George Soros , other top financiers and prime global investors. We all know Soros legend as an investor and his 'level' so no need to belabour that aspect of issues. Where in the article has anyone said "go away . Nigeria is not attractive to us".

Rather , they give conditions. If those conditions are then not met because political will is absent from GEJ , and seubsequently we do not see Soros or his ilk investing in Nigeria, can you then say Nigeria is not attracting FDI from top Avenues because we are intrinsically unattractive or will you conclude that what needs to be done to boost investor confidence , for top tier players, remain undone? We simply cannot attract the best Private sector players without the reforms and actions they would want to see . Traditionally, the PDP cannot commit to those reforms and actions because it will put sand in the gari of 'awon boys'.


http://www.thisdayonline.com/

Okonjo-Iweala Hunts for FDI, Meets Soros, Others



08 Aug 2011

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140411Tngozi-okonjo-iweala.jpg - 140411Tngozi-okonjo-iweala.jpg

Ngozi Okonjo-Iweala, Finance Minister

By Kunle Aderinokun

Incoming Finance Minister and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, has commenced hunting for Nigeria’s needed foreign direct investment (FDI) in the United States, with meetings with top financiers and key global investors.
This move is in pursuit of President Goodluck Jonathan’s focus on growing the economy by boosting investment and job creation in the country.

The meetings, which were held in New York and Washington DC, were centred on exploring opportunities in different sectors of the Nigerian economy especially with regards to financing important projects in the country.

THISDAY learnt that among the financial and investment heavyweights she had met so far were the iconic financier, Mr. George Soros, as well as the heads of two of the biggest investment banks in the US - Citigroup CEO, Mr. Vikram Pandit, and CEO of JP Morgan Chase, Mr. Jamie Dimon.

According to a source at the meeting, the discussions were both “positive and promising”.
The investors are clearly interested in Nigeria and would invest under the right conditions and environment but they also expressed concern about some aspects of the country’s financial and economic management.

In particular, the financiers and investors would like to see a tighter approach to macroeconomic management, including a better budgetary process, improvements in the investment climate and greater transparency and rule of law in the country.

The source noted that there would be follow-up meetings in the weeks ahead to further explore specific ideas and possible projects.
Meanwhile, there are indications that the imminent arrival of Okonjo-Iweala to take control of the Ministry of Finance may have started yielding positive effect on international perception of the country’s economic prospects.

According to a recent report by Bloomberg, Nigeria’s dollar bond yields are at an all-time low in comparison with European stocks because of the country’s low debt stock and “expectations (that) Ngozi Okonjo-Iweala, a managing director at the World Bank, will help spur policy changes to encourage investment when she returns to the cabinet”.

so he admits his party has failed

Gbawe:

@Wesley80.

My brother, nothing brings home the truth more than real and current analogy/illustrations. Below , Okonjo-Iweala is laudably soliciting for FDI (foreign direct investment) by lobbying the likes of George Soros , other top financiers and prime global investors. We all know Soros legend as an investor and his 'level' so no need to belabour that aspect of issues. Where in the article has anyone said "go away . Nigeria is not attractive to us".

Rather , they give conditions. If those conditions are then not met because political will is absent from GEJ , and seubsequently we do not see Soros or his ilk investing in Nigeria,  can you then say Nigeria is not attracting FDI from top Avenues because we are intrinsically unattractive or will you conclude that what needs to be done to boost investor confidence , for top tier players, remain undone? We simply cannot attract the best Private sector players without the reforms and actions they would want to see . Traditionally, the PDP cannot commit to those reforms and actions because it will put sand in the gari of 'awon boys'.


http://www.thisdayonline.com/

 Okonjo Iweala soliciting for investment from George Soros and others only proves me right, Nigeria has failed to  attract competent investors to her market! The reasons for that is another issue entirely, of course you can choose to blame GEJ and PDP for that but let me also remind you that privatization didnt start in 1999, Nigeria has got a long history of failures as concerns privatization. the fact that there hasnt been competent investors seeking to invest in our parastatals like Ghana had with Vodafone has only left us with the Indians and mostly dubious local investors which makes GEJ's idea of Monitoring and Sanctions appropriate. If you think GEJ is wrong I'd luv to hear your better ideas cos IMO it would take decades for NGR to attain the kind of level that makes Ghana and SA look attractive to such first class investors. Disagree? Our Development cant wait till decades so what's your solution?
 
 I'm a follower of Welfare economics so naturally, I'm not a big fan of Okonjo Iweala and I dont know how much she'lld be willing to concede to attract foreign investment. Yes we need foriegn investment and expertise, but I do not believe they MUST be present for Nigeria to make progress more so when we hvae to bend backwards to accommodate them. A week ago China overturned an investment of Google in alibaba ( a chinese online retail coy) when they felt they were about to gain too much of a foothold in the country. Google cried blue murder and it was pointed to by other investors as further reason why they mustnt go to China, but get the full picture; THEY PROTECTED THEIR ECONOMY. Question is; Would Iweala be able to do same to safeguard our economy or would we end up opening to our detriment in the long run?

wesley80:

  the fact that there hasnt been competent investors seeking to invest in our parastatals like Ghana had with Vodafone has only left us with the Indians and mostly dubious local investors which makes GEJ's idea of Monitoring and Sanctions appropriate.

My brother, Vodafone was interested in Nigeria as far back as 2008. See for yourself:

Vodafone Targets Telecoms Market

Efem Nkanga With Agency Reports

21 November 2008

Lagos — The largest mobile telecommunications network company in the world, Vodafone Group, has expressed its desire to operate in the Nigerian telecoms terrain.

Vodafone, with its headquarters in Berkshire, England, UK has a market value of about £75 billion.

My brother, an Uncle (actually now a SW Nigerian Senator) made his money in telecoms , so I know , first hand , a thing or two regarding the Nigerian Telecom sector. My Uncle actually collaborated directly with BT (British Telecom) . He made me realize that the likes of BT are and will always be favorably disposed towards entry into a market like Nigeria. Did you , for example , know that Vodafone (see below) were actually very interested to take over NITEL? That is why , even though I did not mean it ungraciously, I said that you lied before when you were seeking to show that Nigeria intrinsically , in comparison to others, is unattractive to top Companies. I hope we can now move on, since I have shown Vodafone was interested in Nigeria and NITEL, and focus on the cronyism, lack of reform, non-transparency and self-interests putting off the right caliber of private sector participants Nigeria needs to make its privatization efforts successful.

http://www.telecomsinsight.com/file/71107/vodafone-interested-in-nigeria.html

Vodafone Interested In Nigeria
November 2008 | Company News Alert

   
Vodafone, despite recently issuing a new, more conservative and cost-saving focused investment strategy, has expressed a keen interest in investing in Nigeria's rapidly growing telecoms industry, according to Bloomberg. The announcement is interestingly timed, as reports are emerging in the local press that the privatisation process for the country's beleaguered incumbent operator Nitel appears to have become derailed again.

@Wesley80 and co.


Sey una see wetin we dey talk about below? GEJ should simply admit that Privatization failed because the PDP , directly eschewing transparency and a genuine developmental agenda, runs the "biggest black Nation", replete with unmatched opportunity that will interest the best anytime and any day, like a cheap corner shop family business!!!

look at the alleged current squabble between Sambo and the Senate as regards NITEL. When everyone should be thinking and acting in consonance to patriotically subjugate themselves to a transparent and thorough scheme that will see the best bid carry the day, "key" PDP players have already pitched their tenth with those who have sorted out their "10%" . Next minute we will hear , falsely, that Vodafone "are not interested in Nigeria" while the simple truth remains that the Government , for the sake of the copious aggrandizement of a few, is not interested in Vodafone and others like that who may not be willing to 'play ball'.

http://www.champion.com.ng/displaycontent.asp?pid=11609

Mark is alleged to be at war with the vice president over the renewed plan to sale the Nigerian Telecommunication Limited (NITEL).

The vice president who is the chairman of the National Council on Privatization (NCP) was reported to be working for a foreign investor to buy NITEL at $968 million, as against the alleged preference of the senate president for Globacom for $450million. The duo is alleged to be flexing muscle over who determines the NITEL buyer.

^^^ I'm not trying to absolve the PDP of blame but I'm sure you know Privatization didnt start in 1999 right?
About the ALLEGED squabble between the VP and Mark, I'm left to wonder if either of them should be calling the final shot when there's a bureau charged with doing just that, and as much as its convenient to blame the PDP, we also should be asking ourselves what is wrong wit our institutions. Why is the BPE nothing but a rubber stamp of the executive and legislative arms of govt when its duties are Statutory and fully backed by law? Why cant we press for the bureau to assert itself and accept the blame when it fails? Why cant we simply strengthen our institutions instead of focusing on the centre all the time? Just a thought. I'm sure the squabble if any really exists is a somewhat healthy one as there are arguments for both sides but what makes it seem really bad (apart from our collective cynicism) is the inappropriateness of the people involved to be makin such decisions let alone squabble over it.
strengthen our institutions instead of focusing on the centre all the time? Just a thought. I'm sure the squabble if any really exists is a somewhat healthy one as there are arguments for both sides but what makes it seem really bad (apart from our collective cynicism) is the inappropriateness of the people involved to be makin such decisions let alone squabble over it.

Like every right minded leftist I knew from the get-go that privatisation especially in nigeria could never work. Obj borrowed a leaf from the russian experience where the likes of abramovich and that yukos oil gang sold the states assets to themselves for pennies and became kings overnight. When you examine the manner in which symbols of our heritage like the 1004 flats and ajaokuta steel project were sold its obvious it wasn't privatisation just plain old fraud

jayflex:

Like every right minded leftist I knew from the get-go that privatisation especially in nigeria could never work. [b]Obj borrowed a leaf from the russian experience where the likes of abramovich and that yukos oil gang sold the states assets to themselves for pennies and became kings overnight. [/b]When you examine the manner in which symbols of our heritage like the 1004 flats and ajaokuta steel project were sold its obvious it wasn't privatisation just plain old fraud

Indeed. Yar Adua carried on where OBJ left off and GEJ has now received the baton and is doing admirably well in protecting the interests of our own ruthless Oligarchs who are just as visceral as their Russian counterparts. only a fool will not see the "business as usual" motivation that led to GEJ directing the home of corruption (NNPC) to turn our refineries round within 2 years when everyone, from how GEJ spoke before the election, assumed the privatisation of our refineries was a done deal.

"The nation's economy remains parlous, introverted and import-dependent because it has always been run by political power holders on behalf of these economic barracudas who have become the closest friends of Aso Rock and the main financiers of the ruling party. How do we expect the local refineries to work when these vampires are reaping bountifully from refinery turn-around maintenance contracts and fuel importation?"


http://allafrica.com/stories/201107150650.html

But owing to the intricate relationship between political power and wealth in Nigeria, Saraki's sound observation about the controversial subsidy system may be ignored so that business will continue as usual. The tycoons who control the oil importation business are also the powers behind the Aso Rock throne.

T[b]hey are like the oligarchs of Russia who, according to David E. Hoffman, became extremely wealthy through crony capitalism. By grafting their businesses to the very source of political power the oligarchs made hay in the fifteen years "from the dawn Mikhail Gorbachev's perestroika and glasnost reforms in 1985 to the aftermath of Boris Yeltsin's resignation on December 31, 1999." By having their firm grip on those in government the oligarchs in the words of Hoffman amassed fortunes, took over the crown jewels of Russian industry, commanded private armies, played kingmaker in elections and ruled the country and its citadel of finance, Moscow. "They bought up the Russian mass media especially television and they seized not only factories but also the assets of state itself, including the budget, the law enforcement system, and the Kremlin leadership. In their swaggering domination of early Russian capitalism, they were secretive, deceptive, and at times ruthlessly violent."

Unknown to many that Nigeria has its own oligarchs that seem to be more vicious and ruthless. They are behind the failed turn-around maintenance of refineries.[/b] They own the few private pockets into which, according to Saraki, the huge fuel subsidies sink. There is a tiny shadowy business class that has cornered the refined fuel supply system and sabotaged every effort at self-sufficiency in local refining.

They have pocketed the oil bureaucrats and rendered government apparatus ineffective for achieving the public purpose. Nobody should expect any sector of the economy to function in public interest if the powers behind the throne are still alive and kicking.

Those who doubt the ruthless operation of this shadowy group should go back in history to 2007 when the ruling party raised funds for its national secretariat. The party raised N6 billion but what should be noted is that only two businessmen who have always been close to the seat of power donated more than half of the total amount raised at the launch. But because the Nigerian state was feeble and the civil society weak, there was nobody to move against the glaring illegality of the donation. Obviously that donation would have been milked from oil subsidy and other rents.

Under former President Olusegun Obasanjo our own oligarchs became so influential and powerful to the extent that when it was time for Baba to campaign for re-election in 2003, these permanent friends of Aso Rock came together to raise funds. Operating as Corporate Nigeria, they were conspicuously present at Baba's controversial library fundraiser. They did so well for themselves under that administration that they wanted the dispensation to be elongated beyond the two terms permitted by the constitution. In screaming and conspicuous wrap-around ads, the shadowy group of influential business politicians urged all of us to "Vote for Greatness, vote for Tenure Extension". Good money made from arbitrary concessions, import waivers, questionable contracts and other juicy rents, was splashed on the obviously illegal third term agenda.

The nation's economy remains parlous, introverted and import-dependent because it has always been run by political power holders on behalf of these economic barracudas who have become the closest friends of Aso Rock and the main financiers of the ruling party. How do we expect the local refineries to work when these vampires are reaping bountifully from refinery turn-around maintenance contracts and fuel importation?


As I have stated elsewhere, I do not expect the power sector to be promptly fixed because that will instantly destroy the business of well-connected diesel and generator sellers. The rail system may remain prostrate for a long time because powerful people are reaping from road haulage business. Nor do I look forward to self-sufficiency in fertiliser production because the annual importation and procurement of the major farm input is another way through which the government enriches its cronies.

But for how long can a country survive by sacrificing the interest of the public for the greed of a few? For President Jonathan to crack the fuel conundrum, he must be ready to confront the powerful cabal milking the juicy sectors of the economy. 

^^^^^^
Can these cabals prevent private refineries from operating? let the government deregulate fuel prices and then see private refineries spring up! We'll the see what cabal will prevent a refinery run by Shell for example from operating efficiently and putting the inept and mismanaged government run refineries out of business

jayflex:


Like every right minded leftist I knew from the get-go that privatisation especially in nigeria could never work. Obj borrowed a leaf from the russian experience where the likes of abramovich and that yukos oil gang sold the states assets to themselves for pennies and became kings overnight. When you examine the manner in which symbols of our heritage like the 1004 flats and ajaokuta steel project were sold its obvious it wasn't privatisation just plain old fraud

The poster above beat me to it. I have long wanted to mention on this board the parallels between Nigeria's and Russia's journeys of 'reform'.

I have said before: crony capitalism is no capitalism. The apostles of privatisation would do well to remember this. It is fashionable nowadays to deride statism as a failed, broken ideology but the defenders of the free market should note that crony capitalism may well turn out to be 'true' capitalism's nemesis.

Back to Nigeria. We cannot say we are truly better off now (than we were in the 'evil' days of state owned enterprises) if all we can point to as evidence of our own 'privatization' is a bastardized monstrosity that is neither truly left nor truly right in its orientation, processes or outcomes.

It makes no sense to replace public monopoly or inefficiency with private monopoly, inefficiency or extortion.  Particularly in key industries with strategic importance.

None whatsoever.

kalokalo:


Can these cabals prevent private refineries from operating? let the government deregulate fuel prices and then see private refineries spring up! We'll the see what cabal will prevent a refinery run by Shell for example from operating efficiently and putting the inept and mismanaged government run refineries out of business

@ Kalokalo

Sir,

Correct me if i am wrong, but i was under the impresssion that only PMS prices are still being regulated by the state? My memory sometimes fails me but I think i can remember one of the key arguments put forward for the full deregulation of AGO & LPF oil prices was that supply shortages of these fuels would become a thing of the past. Is that the case today? Are we certain that full deregulation of PMS prices will lead to the supply side el dorado we are all looking for?

And one more thing. . . Do not undereestimate the crony factor in Nigeria's capitalism. Your point about privately-owned refineries running state-owned refineries out of town is well noted. But it IS entirely possible that a 'cabal' could wake up tomorrow and use the instruments of government and the law to make it impossible for a privately run, efficient refinery (be it Shell's or anyone elses's) to continue its operations.

Its called nationalization. For the 'cronies' and their allies.

Beaf:

^
What GEJ is saying is that there have been corrupt practices in the past that led to govt parastatals being sold to unsuitable people. That is what led companies built with Nigeria's money to simply crumble away with nothing to show and no improved value for the populace. There must be accountability to the Nigerian people and thats the line GEJ is pushing.
In addition to GEJ's words, there is a Senate probe into what went on in the recent past, and I believe it will lead to several criminal convictions.

Government MUST be accountable to the people, we cannot continue to have shady deals that cost the Nigerian people dearly; that is GEJ's line.

Sir,

GEJ has taken the safe way out, telling us what we all know to be true.

But the veil of deception can only stay in place for so long.

GEJ belongs to a political party that has held power at the centre for over a decade. GEJ himself has been at the highest decision making levels of government for about half a decade now.

He CANNOT, sir, be absolved of responsibility for the failure which his party (and the governments it has produced) has visited upon this country.

You mention probes. We have had quite a few, sir. The power sector probe for example, if i'm not mistaken. But what were the outcomes? How many convictions? When the trail in some of these probes began to get uncomfortably close to individuals at the highest levels of the government and the ruling party, it became clear that it would be impossible to pursue the matter to a logical conclusion (without having up to half of Nigeria's super power elite standing in the dock) in court.

And there's no way that's going to happen. It didn't under OBJ's watch. And it certainly will not under GEJ's watch.

You said sir, and i quote: "there is a Senate probe into what went on in the recent past, and I believe it will lead to several criminal convictions".

You sir, believe "it will lead to several criminal convictions".

The question is: does your principal share the same belief?