WHY ATIKU's IDEA OF NNPC PRIVATIZATION A VALID POINT TO STRENGTHEN ECONOMY: doubled as a move to halt the skyrocketing indices in the Nigerian labour market through petrochemical investment

By : Dahiru Muhammad Debarh.

400L level Student of Industrial chemistry, ATBU, Bauchi. 

07015518881 | dahirumohddeebarh@gmail.com

Privatization, to clear some dust, may be in a synonymous to selling which may cook a hot mess for misinterpretations and had sparked alot of debate that shaped the opinions of voters in the last presidential general election on appropriateness of privatizing a 43years old Oil and Gas industry. Standing truth is, Privatization is a process of transferring a business, organization, industry or service from a public to private ownership and control for a better; Maintenance, innovation, flexibility, service quality and streamlined.  

NNPC is a public owned enterprise oil and gas industry founded in 1977, a 43years old. The word NNPC is a acronyms of Nigerian National Petroleum Cooperation; the oil cooperation through with the government regulates and participate in the country's petroleum industry. It business operations are managed through Strategics Business and cooperates service unit (SBUs). 

Now having said that, I believed we inhaled some ideas on the Nigerian mainstays economy - Oil and Gas industry. And because it generates a lot of luxury source points, Nigerian politicians hijacked the operations and shared the benefits to those in the circle of Elites. Now tell me where does the average population of the country benefits from far or near. I guess the only way is to privatize NNPC in other to raise revenue to build other sustainable sectors of the economy and fight poverty in Nigeria. These sectors may include industrialization Which may be giving birth as a result of more investment from both local and foreign investors just like how Saudi Arabia prosper through Saudi Aramco since NNPC failed to provide a sustainable refining capacity in Nigerian, contributing only 10% to the national crude oil output(NNPC 2019).

The undeniable fact is, NNPC is politically driven not profits driven. As such Nigerian government through privatization can raise enough revenue through initial public offering and taxation to fund capitals and development projects and built new economies that may halt the skyrocketing indices in our Nigerian labour market which governmental ministries can't accommodate them all. A win - Win for both government and Poor masses. 

Through this, National and international investors will be allowed to participate giving a home advantages to Nigerian interested individuals. With these many industries will be given birth just to mention but few - all the petrochemical processing industries. More of industries gives a green light for poverty eradication as youths may find a way to works with private companies while others may be directed to accommodate government appointments. 

More revenue, low oil prices, competitiveness, more discoveries and as well true market economy are few of the advantage in privatizating NNPC after all it's not politically healthy for Nigeria to keep holding inefficient NNPC at the cost of people. Success have been recorded in a global countries after privatization.

Saudi Arabia I said initially had made a very good reference point and it has become a global passion and best practices. Through competitive petroleum industries foreign investment can be attracted and petrol prices across market can be lower than before. 

Will Nigeria loose it Oil and Gas reserves by Privatization? 

A good question indeed, all natural resources will still belongs to the federal government and the FG decided how to equitably allocate ownership of resources and distributes proceeds from common natural resources across states and local governments. The management of the petroleum and institution will be saddled on the efficient private sector, and the royalty for using Nigerian Natural Resources will still be paid. And of course Nigerian government can still wish to maintain and retain certain level of interest in the management of the sector( Dr Ahmad A, and Bilal C had explained). 

Nigerian is reported to be a global headquarter of poverty (Chukwu 2019) despite our huge resources to compete with other top Countries. While government as an entity is been challenged by an infrastructure deficit and nearly or equal to foreign debt, of course it may not be surprised mentioned her as a global headquarter of poverty. Is this not an ashamed to the leaders? Certainly Yes. 

To turn things around we have to criticize our government to adequately invest in some critical sectors of the economy to strengthen it. But can we get a wherewithal to finance those Critical Sectors? Kinder in 2016 inserted that our oil dominance is presumed to be on decline, and a grand energy transition is anticipated in a near future. And crystal clear is that with or without oil dominance price of oil is likely to drop in a near future I learnt it in my CHM321 last semester at school which will then pose a economic challenge to Nigeria and if that happens, Nigeria have no alternative than forced for another economic base. They say "a stitch on time save nine". 

Let me conclude this submission by saying: privatization has in some countries and sectors yielded positive outcomes, evident in the Nigerian's telecommunications sector. Privatization is a global phenomenon and indeed a major driver of globalization. It caused increased performance and efficiency. 

Thank You Most Sincerely for your Time to read through this. 

Tahir 

Is a budding writer with science-driven mind. Writes from Jalam, a district in Misau Emirate.