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.