By Odoh Michael

In the history of the world, no nation has successfully tackled the problem of underdevelopment and extreme poverty using the socialist economic model. In fact, nations have been able to tackle the two above problems using the capitalist economic model. China had to open its economy and introduced a free market policy that has seen it rise to become the second biggest economy in the world. Countries move from a socialism to capitalism to experience growth and those like North Korea, Venezuela and Eritrea who are core socialist states have continue to suffer huge economic crisis. It is very surprising to see Nigeria moving from a free market capitalist economy to a socialist one under President Buhari, this only goes to show a proper lack of economic knowledge. In the quote attributed to the President recently, he noted that his administration has laid the foundations and are committed to seeing it through and that he was going to work harder this time around. The question here is, what foundation is the president talking about, is it the same foundations built on socialism that has destroyed Nigeria’s economy in the past four years and made its people poorer. One thing about socialism is that the center becomes the only source of survival for everything and today, our states have become parasites on the federal government, always running to the center for intervention for every little challenge, how long will this last?

Nigeria, that was once the fastest growing economy in the world is not even among the top 3 fastest growing economies in Africa. Ethiopia, Rwanda and Ghana now hold those positions and that is because they are the most liberal and business friendly economies in Africa. The more reason why Ghana will wake up and deport Nigerians without even thinking of the economic consequence should Nigeria decide to relate economically. Nigeria can only tackle poverty when it becomes a market economy where the private sector runs the economy which will see an increase in foreign investments and these where the focus of the Atiku Plan.When Atiku noted that he was going to sell NNPC, the ruling APC got its supporters to attack the plan and accused Atiku of planning to sell the cooperation to his friends. APC recently twitted a picture of the cooperation’s building and wrote under, “Thank You for saving us from being sold”. This only goes to show how myopic those in charge of the government are when it comes to the economy. Atiku Abubakar is right about his decision to privatize NNPC and this is why, the cooperation has 3 sectors, the downstream, upstream and the midstream. The downstream sector has not been making any profit at all but rather, Nigeria has continued to lose billions in naira in financing its activities and paying of its workers. None of our 4 refineries, depots and pipeline marketing company had declared any dividend in the past 20years. The right thing to do is to sell it off to an investor who will assume ownership of both the asset and the liability. Nigeria stand to gain because the losses will be eliminated and huge sums will made through taxes.

In the upstream sector, NNPC has been stagnated at 2million barrels per day for over 2 decades because it has always failed to meet its cash call obligation to its joint venture partners and this has laid to limitations in the operations of oil exploration, oil prospecting, oil drilling and many other projects. According to Dokun Ojomo in a recent tweet, A privatized NNPC will set the government free from looking for funds to fulfill her cash call agreements as the new investors will run NNPC in a professional way, oil production will improve and more taxable income will be derived from the petroleum profit tax. Money from the sale of NNPC will be redeployed to other sectors of the economy such as the Power sector which will also generate income, this is called Portfolio re-balancing in finance. The Midstream has already been privatized with NNPC owning 49%, it is run by the NLNG and this sector is one of the highest generating revenue sector for the NNPC. This is what Atiku is looking to achieve but without making research, the APC has gone all out to crucify the plan. If our 4 refineries are privatized and starts to work and that of Dangote also, just like in the telecoms sector, the price of its commodity will be determine by market forces. Take the charge of a mobile telephone call per minute in 2001 and compare it to today, it has dropped because of an increase in competition in that sector, the petroleum sector will experience the same. Atiku has also promised to put NNPC on the stock exchange so that Nigerians will be able to trade on it and buy shares, Nigerians will become owners of NNPC and will benefit when profits are made. For football lovers, Manchester United is among the top three richest club in the world because it has been listed on the New York stock exchange with people from all over the world buying shares in the club. This has laid to more revenue for the club to undertake new ventures and also seen its profit rise. Nigerians stand to gain more from a privatized NNPC.

Atiku should not relent in his court case as Nigeria is currently sitting on a time-bomb needing someone with his economic knowledge to save it. Another 4 years of the socialist policies of Buhari will see Nigeria become an Eritrea or a Venezuela which will be bad for the African continent. An Atiku’s victory in court will not only strengthen our democracy, it will give our economy a new sense of life. Atiku should also not be bothered by the decamping of his former DG, Otunba Gbenga Daniel, even in the bible, the betrayal of Jesus Christ by his close confident Judas Iscariot which led to the death of Christ, did not stop Jesus from completing his mission on earth. Nigeria will surely work again.

Source: Atiku, Free Market and the NNPC

cc: lalasticlala mynd44

Opinionated:
By Odoh Michael

In the history of the world, no nation has successfully tackled the problem of underdevelopment and extreme poverty using the socialist economic model. In fact, nations have been able to tackle the two above problems using the capitalist economic model. China had to open its economy and introduced a free market policy that has seen it rise to become the second biggest economy in the world. Countries move from a socialism to capitalism to experience growth and those like North Korea, Venezuela and Eritrea who are core socialist states have continue to suffer huge economic crisis. It is very surprising to see Nigeria moving from a free market capitalist [/b]economy to a socialist one under President Buhari, this only goes to show a proper lack of economic knowledge. In the quote attributed to the President recently, he noted that his administration has laid the foundations and are committed to seeing it through and that he was going to work harder this time around. The question here is, what foundation is the president talking about, is it the same foundations built on socialism that has destroyed Nigeria’s economy in the past four years and made its people poorer. One thing about socialism is that the center becomes the only source of survival for everything and today, our states have become parasites on the federal government, always running to the center for intervention for every little challenge, how long will this last?


[b]Source: Atiku, Free Market and the NNPC

cc: lalasticlala mynd44

Nigeria has never practised free market capitalism but crony capitalism.
Crony capitalism is an economy in which businesses thrive not as a result of risk, but rather as a return on money amassed through a nexus between a business class and the political class. This is done using state power to crush genuine competition in handing out permits, government grants, special tax breaks, or other forms of state intervention over resources where the state exercises monopolist control over public goods, for example, mining concessions for primary commodities or contracts for public works.
https://en.wikipedia.org/wiki/Crony_capitalism

Atiku practises all forms of cronyism and is also highly corrupt. free markets encourage competition, public enterprises are privatised on the stock exchange and not to friends of government officials. The only path to prosperity is FREE MARKET capitalism but the Nigerian masses and leaders do not believe in competition. We tend to believe in who God has blessed over merit or capability. Without serious investments in basic Education, Nigeria will remain exactly where it is 100 years from now.

The problem is, most Nigerians are opposed to selling NNPC.

1. Selling NNPC means goodnight fuel subsidy, hello price increase in fuel prices

2.People are already complaining about how 'we sold NEPA, no improvement'...(there is no improvement because the law does not allow DISCOS sell at high prices.

The problem is not APC or PDP....the problem is Nigerians do not want to pay higher amounts of money for anything. That is why privatising government agenices is unpopular.

And no matter how much explaining you do....how selling NNPC would actually promote growth and investment in the fuel sector, and how new refineries would be built, and how prices of fuel would come down...all people see is HIGH prices.

Even Atiku supporters bash Buhari for his partial removal of subsidy. Meanhwile anti-PDP guys were blasting GEJ for his own partial removal in 2012....

I wonder, why do Nigerians love low prices for everything...even to the detriment of their economy.

The Economist magazine wrote of a lost decade with Buhari at the helm. That's the blunt and bitter truth. His economic illiterate supporters argue otherwise hoodwinked by his principled character as if this makes you a maestro in economics.

I'm apolitical so I'm neither pro APC or pro PDP. but in terms of economic policies, Atiku's policies are light year ahead of PMD's pauperising policies.

theoldpretender:
The problem is, most Nigerians are opposed to selling NNPC.

1. Selling NNPC means goodnight fuel subsidy, hello price increase in fuel prices

2.People are already complaining about how 'we sold NEPA, no improvement'...(there is no improvement because the law does not allow DISCOS sell at high prices.

The problem is not APC or PDP....the problem is Nigerians do not want to pay higher amounts of money for anything. That is why privatising government agenices is unpopular.

And no matter how much explaining you do....how selling NNPC would actually promote growth and investment in the fuel sector, and how new refineries would be built, and how prices of fuel would come down...all people see is HIGH prices.

Even Atiku supporters bash Buhari for his partial removal of subsidy. Meanhwile anti-PDP guys were blasting GEJ for his own partial removal in 2012....

I wonder, why do Nigerians love low prices for everything...even to the detriment of their economy.

Crude oil and its derivatives are commodities. Your claim that privatisation will automatically lead to lower prices is the same as claiming locally produced rice should automatically be cheaper than imported rice. Is this the case?

Cement (another commodity) that was privatised, which is cheaper? Locally produced or imported?

Is privatising NNPC the right way to go? YES, but not just NNPC, the majority of Government MDA's should be shut down as their workers do not provide any service to the Nigerian masses.

Will privatising NNPC lead to cheaper prices or even local refining of crude? Only God can tell.

grandstar:
The Economist magazine wrote of a lost decade with Buhari at the helm. That's the blunt and bitter truth. His economic illiterate supporters argue otherwise hoodwinked by his principled character as if this makes you a maestro in economics.

I'm apolitical so I'm neither pro APC or pro PDP. but in terms of economic policies, Atiku's policies are light year ahead of PMD's pauperising policies.

A decade is 10 years and Buhari has been in power for 4. As soon as OBJ left power, our economy has been at the mercy of international crude oil prices. No leader after Obasanjo made any substantial policy to reduce poverty and induce growth. The only noteworthy program during GEJ'S presidency was YouWin and investing in public education would have been by far better than that program.

Note little Success asking to be beaten rather than go home to face her mother. A 7 year old already that emotionally intelligent to care more for her mother's sadness than the pain of receiving lashes. How many Success's are out there. If all kids don't get good basic education, no entrepreneurial coursework in university will help them.

The biggest difference between developed countries and developing countries is cheap literate labour. Without this, small businesses will never thrive and the economy as a whole will never grow. This is the key to capitalism.

Tianamen1:

A decade is 10 years and Buhari has been in power for 4. As soon as OBJ left power, our economy has been at the mercy of international crude oil prices. No leader after Obasanjo made any substantial policy to reduce poverty and induce growth. The only noteworthy program during GEJ'S presidency was YouWin and investing in public education would have been by far better than that program.

Note little Success asking to be beaten rather than go home to face her mother. A 7 year old already that emotionally intelligent to care more for her mother's sadness than the pain of receiving lashes. How many Success's are out there. If all kids don't get good basic education, no entrepreneurial coursework in university will help them.

The biggest difference between developed countries and developing countries is cheap literate labour. Without this, small businesses will never thrive and the economy as a whole will never grow. This is the key to capitalism.

When the Economist wrote of a lost decade, it meant another 4 years of Buhari on the saddle is a lost decade (it did not mean a literal 10 years).

Just as you have said. the economy needs more reforms to now achieve rates of a tiger. Buhari with a multiple exchange rate policy and the ban on 42 items is regressing the economy

Tianamen1:


Crude oil and its derivatives are commodities. Your claim that privatisation will automatically lead to lower prices is the same as claiming locally produced rice should automatically be cheaper than imported rice. Is this the case?

Cement (another commodity) that was privatised, which is cheaper? Locally produced or imported?

Is privatising NNPC the right way to go? YES, but not just NNPC, the majority of Government MDA's should be shut down as their workers do not provide any service to the Nigerian masses.

Will privatising NNPC lead to cheaper prices or even local refining of crude? Only God can tell.

Thanks for busting that myth that price deregulation of fuel will lead to a massive fall in fuel prices or that a privatised NNPC will achieve the same.

While petrol is a product, gsm calls is a service.

The price a service provider can charge depends on many variables. A lawyer may decide to charge 10m for case while another may do it for free. What matters is that whatever way the decide to charge must be able to cover their running cost or overheads and still make a profit.

A physical product is different. Your aim is to add a to mark up the price you bought so you can make a profit.. No seller of a physical product will willingly sell it below the purchase price excepts it's a sale and is using it as an opportunity to sell off excess inventory (By then has made sufficient profits from it)

That is why diesel price though deregulated, hadnot led to a huge fall in price.

The real benefit of price deregulation is that it will lead to massive investment in the downstream sector of the oil industry. Just like a market determined price led to massive investment in the telecoms sector, the same can be expected in the oil sector.

I can see lots of refineries being built for instance.

grandstar:


Thanks for busting that myth that price deregulation of fuel will lead to a massive fall in fuel prices or that a privatised NNPC will achieve the same.

While petrol is a product, gsm calls is a service.

The price a service provider can charge depends on many variables. A lawyer may decide to charge 10m for case while another may do it for free. What matters is that whatever way the decide to charge must be able to cover their running cost or overheads and still make a profit.

A physical product is different. Your aim is to add a to mark up the price you bought so you can make a profit.. No seller of a physical product will willingly sell it below the purchase price excepts it's a sale and is using it as an opportunity to sell off excess inventory (By then has made sufficient profits from it)

That is why diesel price though deregulated, hadnot led to a huge fall in price.

The real benefit of price deregulation is that it will lead to massive investment in the downstream sector of the oil industry. Just like a market determined price led to massive investment in the telecoms sector, the same can be expected in the oil sector.

I can see lots of refineries being built for instance.

Refineries will spring up if it is cheaper to refine crude in Nigeria than it is to import petrol. If for security, political, or any other reason it is cheaper to import petrol, nothing will change.

In fact, if Nigerians are forced to buy more expensive locally produced fuel as we have been forced to do with rice, the economy will contract.

grandstar:


When the Economist wrote of a lost decade, it meant another 4 years of Buhari on the saddle is a lost decade (it did not mean a literal 10 years).

Just as you have said. the economy needs more reforms to now achieve rates of a tiger. Buhari with a multiple exchange rate policy and the ban on 42 items is regressing the economy

You are right Buhari is a feudalistic socialist. An Animal that believes some Animals are more equal than other Animals. My problem is that Atiku is not much better. He is crony capitalist who believes influence relationships supersedes merit and excellence. He plans to sell NNPC to friends rather than the Nigerian stock exchange. He doesn't believe in free markets but in monopolies. The only candidate with the intelligence to move Nigeria forward in the last election was Moghalu. Unfortunately, even his own tribesmen rejected him for the eventual loser Atiku.

Tianamen1:


Refineries will spring up if it is cheaper to refine crude in Nigeria than it is to import petrol. If for security, political, or any other reason it is cheaper to import petrol, nothing will change.

In fact, if Nigerians are forced to buy more expensive locally produced fuel as we have been forced to do with rice, the economy will contract.

Dangote said buying his diesel will save Otedola 26naira per litre. So, it will be more competitive in terms of price. He also said he won't be entirely dependent on the locally produced crude oil alone. That he'll be importing some crude.

grandstar:


Dangote said buying his diesel will save Otedola 26naira per litre. So, it will be more competitive in terms of price. He also said he won't be entirely dependent on the locally produced crude oil alone. That he'll be importing some crude.

Let's hope for the best. Does he produce all his cement or is he partially importing like lafarge

theoldpretender:
The problem is, most Nigerians are opposed to selling NNPC.

1. Selling NNPC means goodnight fuel subsidy, hello price increase in fuel prices

2.People are already complaining about how 'we sold NEPA, no improvement'...(there is no improvement because the law does not allow DISCOS sell at high prices.

The problem is not APC or PDP....the problem is Nigerians do not want to pay higher amounts of money for anything. That is why privatising government agenices is unpopular.

And no matter how much explaining you do....how selling NNPC would actually promote growth and investment in the fuel sector, and how new refineries would be built, and how prices of fuel would come down...all people see is HIGH prices.

Even Atiku supporters bash Buhari for his partial removal of subsidy. Meanhwile anti-PDP guys were blasting GEJ for his own partial removal in 2012....

I wonder, why do Nigerians love low prices for everything...even to the detriment of their economy.

The problem Nigerians have with the idea of selling NNPC is not the "selling" per se but the antecedents of the person saying,"I will sell NNPC"

Even the op does not truly believe than an Atiku presidency will transparently sell NNPC n put the monies accrued into judicious use.


It makes an economic sense but politically its a no no because even if Buhari wakes up n say he wants to sell NNPC,PDP leaders will be at the fore front of any protest.


Only time will tell

Tianamen1:


Let's hope for the best. Does he produce all his cement or is he partially importing like lafarge

In cement, the country has no comparative advantage and it was irresponsible for an import ban to be placed on cement.

For the refinery, there's no need for an import ban. 5% import duty placed on imported fuel should suffice lest he robs Nigerians blind like he did with cement

grandstar:


In cement, the country has no comparative advantage and it was irresponsible for an import ban to be placed on cement.

For the refinery, there's no need for an import ban. 5% import duty placed on imported fuel should suffice lest he robs Nigerians blind like he did with cement

I just did a little research. his refinery will create a lot of indirect jobs such as plastic production. most likely his pricing of the raw materials for plastic production will be cheaper than what is currently imported. this will definitely boost our economy. even if fuel prices are a bit higher, if plastic production becomes cheaper, lots of jobs would be created.

Tianamen1:


I just did a little research. his refinery will create a lot of indirect jobs such as plastic production. most likely his pricing of the raw materials for plastic production will be cheaper than what is currently imported. this will definitely boost our economy. even if fuel prices are a bit higher, if plastic production becomes cheaper, lots of jobs would be created.

That's good.

Nigeria by now should have been the energy giant of Africa but blew it by subsidising fuel and refusing to privatise NEPA on time and now by refusing to deregulate the price DISCO's can charge and not fully deregulating the electricity sector. This has been compounded by the government owned NNPC

Imagine if Nigeria was refining 2-3milliom barrels of crude oil daily, had by far the largest petrochemical and fertiliser industry in Africa. And the gas sector was the 2nd largest after that of Algeria. It produced 100,000 mw of power.annually and exporting to neighbouring countries. The country's GDP will be worth at least $2trillion.

That's the great benefit of pouring resources in areas you have comparative advantage.

Tianamen1:


Let's hope for the best. Does he produce all his cement or is he partially importing like lafarge

He produces all his cement