Like every other law or program, the Act
and the Privatization and Commercialization Program is bound to have effects on
our legal system and even on the entire strata of socio-political system. Some
of these effects will be favorable and some adverse. So I shall discuss the
points in this chapter under two heads, is favorable effects and adverse
effects.
PROFITS OF
PRIVATIZATION SO FAR
(i)
Nigeria
has been a mixed economy, that is, some factors of Production has been owned by
individuals while some owned by the State. It is a mixture of Socialism and
Capitalism. If the indices that regulate demand and supply are in good
function, they will determine equitable price in a mixed economy. Then since
most Public Enterprises are not profit oriented, their goods and services come
cheaper than those from Capitalist. This will mean lower prices and higher
demands for the public goods and services. Since the Capitalist are always in
competition with the Public Enterprises, they are forced to reduce their own
prices too. It is always a lease of life to customers. But in the Nigerian
example, the Public Enterprises are not efficient and can so not make its goods
and services cheaper. This means that we do not have need of them. The Act has
effect of returning us to capitalism. Let us watch it unfold.
(ii)
The
second favorable effect and contribution of the Government of its shares, is
the enterprises making it spend less or nothing on them anymore. What is saved
in this way is channeled to areas like health, education and other
infrastructure. This will bring about socio-economic growth and development.
(iii)
The
Act will invariably solve the unemployment problem in Nigeria. It is hoped that
companies after Privatization will become more efficient with absorption of
more labor.
(iv)
Privatization
and Commercialization are bound to create new investment. Most of the core and
strategic investors that buy up shares in these companies are Foreign
Investors. If they taste it and like it then we will have invariably regained
faith and confidence which the Nigerian investment has lost before now.
(v)
Privatization
and Commercialization brings about competition, and competition will on the
long run bring about steady supply of goods and services at lower prices. The
telecommunication sector has started working this miracle. We see today that
“simpacks” of telephone service providers which were selling for Twelve
Thousand Naira (N12,000.00) some years back, now sell for One Hundred Naira
(N100.00) only.