Economic Makeover 💰💄
Is privatization a solution to Nigeria’s economic growth?
Privatization entails the transfer of ownership, control, or management of a state-owned enterprise or public service to the private sector. It involves selling or leasing government-owned assets, shares, or operational rights to private individuals or companies.
According to Investopedia, the advantages of privatization include increased efficiency and cost savings due to profit incentives and reduced administrative barriers. However, critics argue that certain essential services like education and utilities should not be subject to market forces and profit motives.
Nigeria has numerous government-owned infrastructure and enterprises, yet, the majority are underperforming. To address this inefficiency, privatization was adopted as part of the Structural Adjustment Programme (SAP) in 1986. The privatization of the Nigerian Power Authority (NEPA) to the Power Holding Company of Nigeria (PHCN) happened in 2013 as part of efforts to restructure the ailing power sector. However, despite privatization, a stable electricity supply remains a major concern. The impact of privatization on improving the country's economy is a topic of debate.
Can privatization improve Nigeria’s economy? Join us on Tuesday, the 27th of June, at Ventures Africa’s LinkedIn live audio event to discuss.
VA Poll
Recently, we conducted a survey asking our audience whether or not privatization can improve Nigeria's economy. The results show that a significant number of respondents (59%) believe that privatization can have a positive impact on Nigeria's economy if done effectively, with proper regulation and management. However, there were differing opinions, with 20% of participants remaining unsure and 22% expressing a negative outlook.
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