Here we go again. Late president Yar’Adua first action when he assumed office was to reverse Port Harcourt and Kaduna refinery that was privatized by his predecessor, President Obasanjo. He did not stop there, NITEL, Nigerian Telecommunication company owned by the federal government which was privatized by Mr. Obasanjo was also bought back by the federal government. Reversal of Ajaokuta Steel Mill that was commercialized was also reversed. Late president Yar’Adua promised the nation that these companies will back to full operation within few months. His promise went unfulfilled even before he became very sick. The end result was that all the above companies shut down operation like all the rest established by the local, state and federal government since Nigeria independence.
The above companies went belly up because of corruption, lack of incentive which usually occurs whenever you have centralized and socialist oriented economy. The honest truth is that governments has never been a good manager of the economy in most part of the world. Free, private owned enterprises has proven over and over again to be the engine of economic growth. In free enterprise economy, owners of the companies have incentive to make the best decision that will position their companies for growth which in turn ends up producing substantial goods and services for the economy, and enlarges tax base for the government and job creation. It is not unusual for the private company owner to put in 16-hour work day which most government employees will never do voluntarily. Just imagine the rot and corruption in the Nigerian National Petroleum Company (NNPC). NNPC only job is to monitor, manage and account for the oil being dug from the ground and remit the proceeds to the government treasury. The managers of NNPC could not even manage this simple process. Instead, NNPC turned into corruption cesspool where looting and embezzlement is the order of the day.
In view of the utter failure of government owned companies in Nigeria since our independence, it is disheartening to observe that President Buhari is contemplating and in some cases taking steps to recentralize Nigerian economy yet again. The president is once again talking about creation of National airline, reopening the refineries and other government ventures. Can somebody tell the president that Nigerian airline was ran into the ground to the point that the national airplanes was seized or impounded in overseas capitals by creditors in order to recover money owned by the defunct airline. NITEL has been liquidated and Ajaokuta steel mill is no longer in oppression. Mr. President, recentralization is not the way to go. You cannot assume that these companies you are trying to resuscitate will remain in operation when your term ends. Recentralization will prolong the agony of Nigerians and will come to naught like all the companies that has been established by various level of Nigerian government. Can anybody name three accompanies established by the government that is still in operation today.
Recentralization is clearly not the way forward for Nigeria. President Buhari should concentrate on reforming NNPC which should remain under government control along with Ports authority and other parastatals. Cell phone could not be widely available in Nigeria if it is still government owned. Government should concentrate on infrastructural development, provision of social amenities and adequate security for the country. It will be presumptuous of anybody to think that what hasn’t worked since Nigerian independence will suddenly work this time around irrespective of the good intention of the administration. Private enterprises is undoubtedly the engine of economic growth. President Buhari will be well advised to change course and abandon recentralization of Nigerian economy. Partnership with private companies through grants, loans and other incentives is the best way to go.