OBJ's campaign for privatization started as soon as he came in to office in 1999. I think 13 years is more than enough to access the the effectiveness of economic policies.
As for me, privatization will concentrate the common wealth of the nation in the hands of a few. If not, how can Mrs Alakija, Oduah, Danjuma and all these oil well thieves get wealthier? Save Mrs Alakija who's father is very very rich, I don't see how Stellah Oduah, Adenuga, Danjuma and many other oil well thieves can justify their claim to Nigeria's common wealth if not for "privatization" wrapped up with privatization
The only reason the above mentioned people are able to corner the nation's wealth is because of privatization. How is Danjuma able to have more oil well than South Sudan if not for privatization coupled with corruption?
Privatization in the oil sector is nothing but giving the nation's natural wealth to few. Nigeria is not ripe for privatization. The gap between the rich and poor is too wide for such economic policy. It's better for government to control wealth than for individuals to.
Nigerian government is used to changing a good policy instead of probing the corruption of those in office.
Nigerians, how can we access the effectiveness of privatization in since 1999?
My own analysis goes as follow:
minimum wage is 18k. Now, lets say gari is one of our natural resources and the federal government decides to privatize/deregulate gari sector. Let's say Dangote and adenuga bought licenses to produce gari. Now, gari is a common household commodity for all Nigerians rich and poor. This means the demand for gari is very high for a population like Nigeria's. Since the demand for gari is high, and whether the price is high or low, people will have to buy gari to go about their daily business, it means that the producers Dangote and Adenuga can increase the price of gari without fear of a drop in demand for gari. The demand for gari is inelastic but supply can be. Any economist will tell you that high demand equals high price and even higher if demand is inelastic. Now, if Dangote cuts gari supply and Adenuga does the same, Price goes up and even when both suppliers return to normal supply quantity, price will remain the same because the demand won't change!
In 18k/month minimum wage economy, should there be a cap on what price of gari should be? if so, why deregulation? It's human nature to seek benefits and we can't blame the private sector for seeking more profit even if it means Nigerians won't survive.
Replace gari with oil and you'll understand why deregulating/privatizing the oil sector is bad for an emerging economy like Nigeria's. since oil is a needed commodity for 95% of Nigerians, both direct and indirectly, Nigerians will spend more money on oil and there will be less money for other commodity which means many other sectors of the economy will die because of high price of a necessary commodity.
The reason many sectors will suffer the oil price increase is simple and can be explained as follow: Oke gets 18k/month, before fuel price increase, Oke spend 3k/month on transport, 2k/month on refreshment... The money is divided into different uses giving revenue to different sectors of the economy. Now, after fuel price increase, Oke uses 7k/month on transport. The money for transport will have to be gotten from money used for other stuffs meaning Oke will have to stop spending or spend little on some things to make up for transport. Oke's situation is same for all Nigerians who don't get wuru wuru money (95% of Nigerians). Now, because of Oil price increase, other sectors will get little revenue killing the sectors and jobs provided by those sectors. All this because the government is not willing to take on it's responsibility to the people of an emerging economy. No emerging economy can survive with deregulation and privatization unless credit is pumped into it. But why borrow when you can make do with what you have with the right policies?
I asked, what has privatization done for Nigeria since 1999? it is killing the middle class, the lower class has taken to crime for survival, poverty has ravaged the land, minds of the youths are idle because their brilliant ideas aren't given chance to manifest as their intuitions desires. What do we get with privatization? The rich gets richer and the poor gets poorer.
All the American mugus that want Nigeria to copy the "american way" should also note that the gap between the rich and poor in the USA has widen over the years. And America is the chief supporter of privatization. Their rich are getting richer and poor getting poorer too. Again, unless credit is pumped into it. So are we suppose to hand our future generations over to bankers simply because privatization is being touted by some rich and mighty folks? Let's do what's right for this nation.