The president of Nigeria, Goodluck Jonathan last week announced that his government will no longer be the owners and managers of public sector businesses.
Questions have mounted about whether or not the move is a good one. According to Chibundu Edozie, deputy managing director at BGL, privatisation is “the way to go”.
He explains that the move from government monopolies is a good one using the example of Ughelli Power which was generating 160 megawatts before privatisation. Once it was privatised, it started to generate over 600 megawatts.
“That’s the power of privatisation … because of the cost of capital they make sure efficiency comes out of these enterprises,” said Edozie.