A check on the act of Private Sector in Nigeria

By: Josmat Jerry

By and large the economic systems being in operation across different countries, which include the capitalism, socialism and mixed economy system of economic activities, through any mode of economic system a nation chooses drives at effective production and distribution of goods and services, wealth and resources far across the length and breadth of the country. The capitalist system which is the control of economics and business activities by individual enhances a 95% power of such into private hands. The socialist type of economics activities on the other hand deals with the control of such by government with little or no interference from private holders, e.g., Russia.

The mixed economy system which Nigeria dwells in connotes the control of economic and business activities by both the private heads and government of the country. With the involvement of private individuals, this gives room for their involvement in the affairs of the country. Over the years, Nigeria have witnessed couples of ownership transfer from the public to private hands, such include, NEPA to PHCN, other privatized companies are National Insurance Corporation of Nigeria (NICON), Nigeria Re-insurance Corporation, Niger dock Plc, National Aviation Handling Company (NAHCO), Nigeria Railways Corporation (NRC), Nigeria Ports Authority (NPA), Nigeria Postal Services (NIPOST) est.

However, checking through the above privatization activities and the overall incidence that surrounds it in recent years, it’s not too far to say the nation (Nigeria) is partially running a Capitalist System of economy in a mask of mixed economy system. Series of companies who rule major business activities in the country are owned and controlled by private individuals e.g., Shell Petroleum Development Company, Mobil Nigeria, MTN Nigeria, Dangote Plc, Nestle Nigeria Plc est. In fact, statistics shows that out of the top 20 companies in Nigeria, only 5% are of government. This depicts the assertion that the country is being stylishly controlled by private hands.

To dwell into an assessment of the private sector in Nigeria is to tell of the private companies’ descriptions, roles they’ve played in the development and daily trend of economic activities, their negatives to the nation’s flow of income and also their contributions to the uplifment and downgrading of the social, economic and business activities of the country. Overtime, the huge space left unfilled by government in ensuring public companies are also in existence in quite a well significant ones which won’t make the number of private companies override and overpower them has been a deciding factor of the current economic situation of the country.

Out of the few figures of public companies in the country which results to the nation been close to a capitalist economy, such will be placed sideways to analyze private sectors in Nigeria. The objectives and main aim why public establishments are being established is to make life better for citizens as they aren’t profit orientated. Whereas, private companies are all 100% profit targeted as they critically considers their cost and benefits before engaging in any production, sale or services. As per this, goal oriented factor has been a major reason there has been sequential increase in prizes of goods and services when some constraints warrant it (fuel prices).

Actually, rain of praises must be directed towards the private sector for the rescue provided as they save the country from falling into the hands of foreigners. When the government of the nation failed in its duties to carefully and effectively handle the economic activities of the nation via public companies, also their failure to enable a swift standard of living via the operation of public enterprises (which are of non-profitable) with the main objective of providing essential services for the citizens, the private sector rose to the occasion and took control of this operation.

In a democratic nation of Nigeria, the current status of technology, the improvement in the aspect of artificial intelligence emergence of the country and the continuous flow of its activities are all much alive with thanks to the private sector. Even though through their goals of profit oriented and maximization which has made things skyrocket in prices, the private sector of Nigeria has been on a very much active state and will always be as its showing signs of time-to-time research, improvement and development.