Political Parties’ Discussion Exposes Nigeria’s Illusion on Privatization

Audu Liberty Oseni

The Centre for Democracy and Development (CDD) in its election project ‘Nigerian Political Parties Discussion Series (NPPDS)’ organized inter-party debates on topical socio-economic and political issues ahead of the 2015 general elections. The key objective is to promote issue-based politics, and provide political parties an opportunity to present their programs to Nigerians on sector basis, as a way of institutionalizing the culture of issue-based politics and fostering democratic accountability in the country. Two major political parties, the People Democratic Party, PDP and All Progressives Congress, APC participated in the debates which were held six times staggered in months.

At the debate on the provision of infrastructure with particular focus on water, electricity, housing, health, education, and the oil sector, the People Democratic Party (PDP) believes that privatization is the only alternative to addressing Nigeria’s infrastructure deficit. Although APC does not emphasize privatization, it does not also have a clear opposing view on what it believes in either liberal or socialist perspectives.

If Nigeria is to embrace total liberal perspective that comes with the capitalist ideology where private individuals take over the economy, it is important that we interrogate the liberal model and situate it within the context and prevailing circumstances of our society. The liberal agenda allows for the growing individualization of our society but absence of social contact. In our case, individuals who pose as businessmen represent the interests of the elite, while those who create problems pose as saviors. While our government puts more energy pushing for the legitimization of its privatization policies, the reality is that our privatization process is corrupt and may put the country in a bigger crisis.

In a country like Nigeria that has very weak institutions and lacks political will, privatization is not going to be successful. Effective regulatory bodies that are the key drivers of a successful capitalist economy are missing in Nigeria’s privatization agenda thus making individual forces to determine the market price rather than market forces as postulated by the liberal perspectives. Power plants and other infrastructures cannot be built on the postulation of free market programs that cannot be translated into reality. The fact that no refineries have been built over 20 years while licenses for refineries have been issued to private individuals further confirms the ineffectiveness of Nigeria’s privatization. The Power generating dams, thermal plants, national power grid and local distribution network in the power sector could never have been realized on the basis of privatization. Concentrating state enterprise in the hands of powerful elites without capacity to deliver and who dictate for the state will not give room for successful privatization and its benefits. The priority before them is not to grow the sector but to exploit the weakness of the state to regulate their activities. In the process, they take over the state, and continually put in place those that will continue to protect their interests.

The struggle for privatization and better living conditions depends purely on the political will of the Nigerian state. Unfortunately, Nigeria’s political elites and the emerging political parties are committed to the liberalization policy. They do not seem to have other alternatives to the World Bank and IMF agenda which has privatization at the heart of its agenda which continually puts the poor at the receiving end. Therefore our belief that we are likely to have a political party and ruling class oligarchy that can truly change Nigeria and roll out programs that can transform the society is not likely to come soon.

Corruption is the major obstacle to our development not privatization. Countries such as Indonesia, Malaysia and South Korea, all fought corruption. How do we think that privatization without the political will to fight corruption will create room for successful economic transformation and well-being of the citizenry? Even as we push for privatization, investment decisions in Nigeria are often driven primarily by political considerations. That is why the sale of government enterprises is often determined on the basis of political loyalty than competence.

For Nigeria to realize the potential of infrastructure, privatization, adequate legal and regulatory frameworks must be put in place. Mass retrenchment that follows privatization as we saw in NEPA shows apparently that the liberal model is not human development. Few societal elite get rich at the expense of the vast majority of Nigerians in the name of privatization. Nigeria has at about 69% poverty rate with many citizens living below 1 dollar per a day. To enjoy the benefits of privatization, poverty and employment must be addressed and citizens must have dependable income for transactions.

If Nigeria has to embrace privatization as the engine of growth for her economy, an enabling environment for operation must be created. If infrastructures needed to boost production are still in the rudimentary state as they are, the private sector cannot perform any magic and turn the economy around. Nigeria government’s abdication of its responsibilities of providing infrastructure and embracing privatization without creating institutions with political will to allow for successful privatization and economic transformation will only compound her problems in future.