Atiku's Economic Plan Criticized for Relying on Outdated Privatization Agenda

Strategic Insights -

Former Vice President Atiku Abubakar's economic plan, outlined at the Lagos Chamber of Commerce and Industry (LCCI), has been criticized by Osita Okechukwu, the director-general of Voice of Nigeria (VON), for its similarity to the 1986 Structural Adjustment Programme (SAP). Okechukwu argues that Atiku's emphasis on private sector partnership and privatization of state-owned enterprises, especially in light of the outcomes of past privatization efforts, is misguided. He specifically highlights the cases of Niger Dock and NICON Insurance, both of which were privatized under Atiku's leadership but have since struggled or gone under.

Key Takeaways:

  • Atiku's economic plan has been criticized for relying on outdated privatization agenda similar to the 1986 SAP.
  • Okechukwu argues that Atiku's emphasis on private sector partnership and privatization is misguided, citing the failures of Niger Dock and NICON Insurance.
  • Atiku privatized Niger Dock under his leadership, but the company has since struggled with significant staff and asset losses.
  • NICON Insurance was privatized in 2005 but has since gone under under AMCON life support management.
  • Over N2 trillion has been wasted in life support to Electricity Distribution Companies privatized to improve power supply, leading to crisis and defeat of the core objective of privatization.
  • Okechukwu challenges Atiku to reconsider his economic plan and unite his party before returning to the drawing board.

Statistics:

  • 80% of state-owned enterprises privatized under Atiku's chairmanship of National Council of Privatisation have gone into comatose.
  • Niger Dock had 6,000 staff before privatization but now has less than 600 staff.
  • NICON Insurance had an asset base of N46.9 billion and 30 branches before privatization, but has since been classified as a colossus in the insurance industry in decline.
  • N2 trillion has been wasted in life support to Electricity Distribution Companies.
  • 52 years of operation gathered N46.9 billion asset base for NICON Insurance.

Sources:

  • Osita Okechukwu, Director-General, Voice of Nigeria (VON)
  • Lagos Chamber of Commerce and Industry (LCCI)
  • Peoples Democratic Party (PDP) leadership under Atiku
  • National Council on Privatisation (NCP)
  • Independent newspaper reports on Niger Dock and NICON Insurance failures.