BPE October 18, 2018

What are some of the benefits of privatisation to the economy and the society?

Privatisation is not an end in itself, but it is a key tool for improving the efficient allocation of resources, for mobilizing investment, and for stimulating private sector development. It is expected to bring about the following benefits:

• Reduce corruption and parasitic mentality;
• Infuse capital and modernize technology in our industries, many of which have not seen any improvements for years;
• Strengthen capital markets by increasing the number of companies traded;
• Dismantle monopolies and remove arrogant nature of service, thereby increasing competition and leading, in many cases, to lower prices;
• Promote efficiency, transparency and better management;
• Reduce debt burden and fiscal deficits;
• Resolve massive and perennial pension funding gaps;
• Broaden ownership base and create popular capitalism through the stock market;
• Generate funds (through taxes, for example) for investment in social sectors;
• Attract foreign investment and create a positive image profile for Nigeria;
• Attract flight capital (money taken out of the country because of political and economic instability) back to Nigeria;
• Allow the government to focus on deprived social sectors like education, health, water, sanitation and rural infrastructure; and
• Create more employment opportunities as a result of expansion.