Moreover[b] the government really should concentrate on improving internal security and the maintenance of the existing federal highways.
[/b]

I certainly would not support the FGN commiting to spend billions of dollars on gigantic infrastructure projects as well as the concomittant annual turnaround maintenance when such projects can be handled more efficiently and effectively by the private sector.

A lot of that has to do with being ready to enjoy a cheap subsidized service even though in reality the service does not actually exist most of the time.
It is like a game of smoke and mirrors so to say.

paddy_lo:

Sigh, if the Govt is really serious in subsidizing anything it should perhaps follow the western model
where subsidies are paid directly to the poor citizens,
who then apply such subsidies in buying private sector goods or services

For example here u have subsidies like foodstamps,prescription drugs help for older citizens,rent subsidies,special tax credits and so on
these subsidies work because the private sector is the major driver

its something we can learn from

as for our poorer citizens,they should realize that competition always brings about lower prices and better services in the long run
theres no basis for a Govt run monopoly

You are very right, but our govt are always afraid of competition, cos they know that they serve people with the most terrible service and product.

tensor777:

The free market is the best tool  for determining the allocation of resouces and not some government central planning commitee.

In essence, the well-trained,experienced and motivated financial analysts in the private sector of the electric power industry are in the best position to determine the nature, timing, and extent of any capital investment required to deliver services to their target market.

So yes the FGN should still leave any required capital investment to the private sector. Period.

Ikengawo:

so you people want a welfare state?
im totally against the idea but this is a more legitimate debate then some of the garabage discussions i've ran into on this site.

a welfare state is not something nigeria needs right now because our capital market hasn't fully developed and our people dont pay taxes regularly, nor is there a way to track their tax records and enforce it yet.

things till need to be built before we start giving money to ppl for continuing to not do anything.

Ikengawo:

its the other way around. societies start with free markets and socialize as time and development passes

you must remember the starting point of society is anarchy or lawlessness, this is as free market as free market gets.
then a people organize and form a government to protect themand keep peace, but do so by giving up some of the freedom they had in the state of anarchy
then as time passes these government take on more responsibilities
in the modern era, these responsibilities now include taking care of the economy, which wasn't even considered an option prior to the GReat Depression (which was cause because the free market at the time was too free and rampant)

Nigeria is still a 'frontier market' like the US was right before the great depression. things are still being introduced to the economy and thus it needs to grow as much as possible. When the market is freer it grows more but becomes more wreckless, but when you start creating a welfare state growth slows. the more of a welfare state, the less growth.

not saying one is bad or not but look at europe today and compare it to growing economies like brazil. the growth rates aren't comparable, europe's is low to negative while braxil and even nigeria is close to double digits with china reaching double digits. as soon as these growing economies reach their full economic potential like europe has, THEN its wise to implement the welfare state because growth is no longer needed, but a country without a stron private sector in something as common as electricity should do anything to slow growth, and this includes implementing a welfare state.

Ikengawo:

so you people want a welfare state?
im totally against the idea but this is a more legitimate debate then some of the garabage discussions i've ran into on this site.

a welfare state is not something nigeria needs right now because our capital market hasn't fully developed and our people dont pay taxes regularly, nor is there a way to track their tax records and enforce it yet.

things till need to be built before we start giving money to ppl for continuing to not do anything.

tensor777:

^^
Well you need to look at the substance of the guy's post and not the form. His argument is very legitimate and perhaps novel to some Nigerian ears who have been indoctrinated from an early age to believe the government should be the major player in the economy.

This very American view, if I may say, on the role of government may sound radical to some dyed in the wool socialists here  but it is certainly what is in vogue among financial experts and economists in the corridors of power in Abuja.

agitator:

you people that are so versed in the american system, do you know that oil exploration is in the hands of private individuals? that if you acquire a piece of land any mineral found belongs to you, the owner? and you pay taxes to the Counties, which in turn pays to the States and States pay to the Federal Government. The Rockefellers started out by buying up lands and prospecting on those lands whereas in nigeria you need a license which is not easy to get as the lands are sold in blocks. remember your land can be sold of to any oil company without your consent. so when making your comparisons include this in the equation. "There is no law like land use decree there."

To an extent they are - they have to create an environment conducive for those willing to set up shop.

When a sitting General in Jos that is supposed to help save guard lives and property refuses to do so
based on religious or ethnicity grounds, how well will this sit with potential investors ?

Have you seen the emphasis some countries have placed on making sure they have sufficient power supply ?

Reuters reported recently that Egypt is raising $170 million to build a new 750MW power plant (it currently produces 25,000 MW of electricity).

This simple measure helps create jobs (albeit indirectly) as power supply is essential for any business to
thrive.

[pardon me as I didn't read through the thread b4 posting ]

kayode256:

some intresting points but i will like you to acknowledge the fact that nigeria has been the victim of a failed government for decades and this is stil the case today. just look at lagp state a man comes in with a vision and within a month you see drastic visible change in the infatsructure roads transports aay.nd even job creation. the nigerian federal government are not a practical government. i have been in london for many years now and im sure that if the government here go to nigeria for just 2 months we would see drastic improvements. they do such a poor job in job creation street hawking is probably the biggest sector. it is such a shame a nigeria should be greater then it is today. the nigerian people are not to be blamed. Havin traveled around d world i no the nigerians are very hardworking.

proproman:

Generator importers are private individuals who benefit from the absence of constant power supply and probably work against any plans to improve the power situation. that's an instance where private individuals contribute in inflating unemployment.

agbakara1:

the poster does not know what he's saying.the way things are done in nigeria is diferent how they are done in other counries. when we are saying enabling environment, we are talking about government policies that focus on creating and maintaining an overall macroeconomic environment.it focuses on regulatory frameworks and actions of the government to improving the economy as a whole.
just like others have said that since the central government controls the resources, then it must provide the infrastructure, utilities and facilities for the masses.
1. no country can ever develop without energy especially electricity. the power sector lies under the legislation of the central goverment. PHCN has been unbundled but nothing is happening because the conditions for operation are not favourable. the issue of petrol, diesel also lies in the hands of NNPC, nothing can be done concerning this issue because individuals cannot own oil blocks except you a crony of the goverment.
2.loans could be accessible abroad with little interest, but here you will never get a loan and even if u get, it will be at 30%interest.
3.communication;even though this has been privatised, still cost of making calls are still expensive due to the issue of energy, no electricity and diesel is very expensive and sometimes very scarce to get.
4.sometimes to allow investors come in on, there should be tax incentives but here every tier of government will collect different types of tax from signage to cars with company logos,tax for having a diesel tank in your company etc. infact the tax especially in lagos is too much.

tensor777:

You appear to miss completely the main points we have been arguing here. What we are saying is that the private sector has to be at the forefront of investment and job creation. Certainly the government has its responsibilities like providing security, funding public education and maintaining roads.

That is how it operates in the West which you claim to have lived in for many years. I am not aware that the central or the various local governments in  England  do run commercial ventures. On the contrary local governments here concentrate on things like roads and public parks maintenance, primary school education, management of local libraries and refuse collection. All these activties are funded by council tax.

The state, local and federal governments in Nigeria certainly do not need to run transport companies or manage utilities  like water electricity or telecommunications.
What I find laughable is that some people here expect the government to be the referee and a star player at the same time. Well that approach has never worked so it is time to try something different.

Ikengawo:

people are flooding into nigeria to do business and almost half of the FDI sent to africa goes to nigeria annually, so i dont believe that the government has made the environment bad for business, nigeria is great for business but can be better, if we as the people pull together and do our part instead of pointing fingers.