NiGeria is Bankrupt!!!! &Privatisation…..A warped view of Economic strategy

by | Jul 19, 2013 | Websites | 0 comments

I just wanted Nigeria to Know that we may be in a sell-out!!!

I believe selling out Nigeria is a path we may hope to ploy if and only if we see “Privatisation” as it looks in the eyes of the humourous-analytic.

I was reading this post about Detroit city declaring bankruptcy. The ” Chapter 9″ bankruptcy filing was the supporting regulation. Chapter 9 is a bankruptcy-protection filing specifically for municipalities so they can develop and negotiate a plan to adjust their debts. First question which Nigerians always fail to ask is “Is Economy e.g. Nigeria, a business enterprise?” Yes!!! Evidently only business enterprises, declare assets and go bankrupt!!!

“Bankrupty-protection filing specifically aimed at negotiating a plan to adjust debts”….This makes a very big statement. Of course I am not accusing the Nigerian policy goons of copy-cat, that’s not much of concern, the troubling side to this tale is the purpose of the sell out. The Detroit city tale is one of a failing city throwing off dead weight into the sea. Is Nigeria doing the same?

One of the pertinent questions asked concerning the Detroit bankruptcy case was?

Q: Will anything be sold?

A: It is possible that Detroit-owned assets will be put up for sale, but it isn’t known when that would happen and which assets would be on the block. They could include anything from the Detroit Zoo to a van Gogh painting to the historic Fort Wayne, all assets the city owns, according to public filings and media reports.

The question Nigeria should be asking is:
Are we privatising to make life easier for the ailing infrastructure sector or are we “selling” cause we are bankrupt?

I have taken time to make a post on the guideline to Privatisation also under the “research paper” category. It would be wise to go through it. (Privatisation and Commercialistion) Act of 1999. The system laid out in this plan shows a cowarding government that throws off dead load so it can manage to remain afloat.

The objectives of the privatisation plan plainly show that the government is aware that infrastructure has become “unproductive” as stated and thus the dead weight needs to be shifted. Also like any business enterprise that is struggling to stay afloat, the most unsympathetic step to take is to sell bond, debt issues. I am just trying to use simple terms to describe the system and objective of the privatisation plan.

Taking the particular case of PHCN, it will be recorded in my previous article
“Nigeria’s Debt for Sale” that Nigeria is still raising funds in the name of infrastructure development especially Nepa, recently funds from China were granted for the power sector. Yet the privatisation guideline states that Government will retain 40% of the telecom, electricity, petroleum refineries, coal and bitumen production, tourism, and spill-overs from the first phase of privatisation equities of the affected enterprises whilst 40% will be alienated to strategic investors with the right technical, financial and management capabilities. The remaining 20% will be sold to the Nigerian public through the Stock Exchange.

In short in the definition of the partial commercialisation, the companies were to be run free of government interference but evidently, he who has the money calls the shots. The public is still in darkness people!!!

Recently also a post shows how far the government parastatals have played major role in sinking these commercialised enterprises.

The Chief Executive Officer, Eko Electricity Distribution Company, Oladele Amoda, on Friday said that customers under its network were indebted to the tune of over N9 billion.

Amoda said in Lagos that a large chunk of the amount was owed by government agencies.

He said that the huge debt could be traced to overbilling, estimated bills and complaints from customers which had lingered for long.

The PHCN boss said that the debt had adversely affected the operations of the company. Now the government has sucked the enterprise dry and the bones are for the masses!!!

Now I will plead my folly, and let someone who is blind to evidence tell me the government is not turning my screws and making a fool of us all.

I write to prove my stupidity in the face of ignorance. To ensure that my readers are informed to perform. Thank you. I just wanted Nigeria to Know that we may be in a sell-out!!!

Dami de furst ¤Writz¤


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