Chronicles

Nigeria Economy; In need of real private sector

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We are at a cross road of our national revival. The confusion is palpable. The uncertainty is up in the air. We are at a point where there is serious disconnect between what we want and what is available.

 

In my last post I tried to bring out the confusion inherent in the polity. I tried to explain the bizarre business methods in Nigeria. I wondered how a budget predicated on $38/barrel would work when it would be so difficult getting that price as we speak. I was wondering why people were expecting so many miracles when almost everyone in “serious business circles” in Nigeria is directly or indirectly dependent on government funds.  Let me tell you something; some states were created just to get money from the federation accounts and nothing more. You can blow all the grammar in the world but that is how it is. With oil price at this low rate, I wonder what would really happen.

 

Are you aware that government is practically buying the petrol you are using as we speak? Are you aware that the marketers are not buying anything? They are just hoping to lift from what government bought (or imported). Like I have always said; they don’t have money and they never had. They normally use the normal government deposits in the banks as their capital in form of loans. It is increasingly becoming so difficult getting the money from banks thereby causing the wahala all around.

 

Tell me, at this critical time, how is it possible for government to make an announcement of reduction of petrol pump price from #87 to #85 if they aren’t buying it?  Infact I expected the amount to go down to as low as #75 if you really want to look at the dynamics of things in the downstream sector vis-à-vis the current low price of crude oil in the international market.

 

Over the years we have discouraged or even killed  “real organised private sector”. We have not grown a private sector in any serious form to drive an alternate to this government induced(and funded) economy of ours. I still don’t understand how everything would just be at a standstill just because government has held on to her funds. What concerns Bill gates if Obama decides to hold on to government funds? What concerns warren buffet if government decides to chill with her money? Donald trump doesn’t give a damn about Obama because his business is on track. Can you imagine this in Nigeria?

 

What government does is to come out with policies and regulations. In our case we want government to be part of private businesses by using government funds and resources. This has created big holes because of fast dwindling resources to the government.

When you say regulation, deregulation, over-regulation, whatever it might be, you are saying the same thing. It is government funds being circulated in one form or the other.  We are not yet out of the doldrums. We haven’t had businessmen of note use their personal money to create wealth. Apart from oil, what other inflow of note do we have? This is the real issue we have.

How do you actually create a viable and durable private sector economy in Nigeria should be the thought process as we speak. We need to develop this and that has to be the legacy this present government must deliver. For now, the situation as it were cannot be sustainable with this oil price.

Meanwhile, hope it continues t be peaceful and gentle around you this yuletide season….Ewolewoo!!

About the author / 

Ik Uremeh

Ik uremeh is a social commentator who believes that everyone deserves to live within the confines of his strengths. He is just like YOU.He says: Life is good when everyone desires so...

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