Operators advocate overhaul of privatisation laws

Some capital market operators have called on the Federal Government to intensify effort towards amending the existing privatization laws that would transform the Nigerian economy.

They attributed the nation’s stunted growth, limited skilled human capital development and paucity of need infrastructure to the subsisting privatization legal framework.

The operators, who said on the sidelines of the just concluded forth annual capital market retreat that government needed urgently overhaul the privatization laws to maximize the fruits of the exercise in terms of sustainable economic growth and employment.

According to most of them,

the present privatization legal framework was contrived in a manner that would make government long term economic development a mirage.

They argued that the inability of the federal government to provide “medium and long term development clause” in the privatization document for emerging companies from the exercise to be listed within a specific period remains an anathema.

They also said that experiences from successful nation states privatization provided their citizens opportunities to benefit in the transformation of the commonwealth into private enterprises.

Mallam Garba Kurfi, Managing Director and Chief Executive Officer of APT Securities and Funds Ltd, blamed the federal government for the sustained shortcomings in the nation’s privatization laws.

“Most of us support the privatization policy of opening the nation’s investment space but with the provision that evolved companies must be listed after a certain period.

“Honestly, government short comings, has compelled us to support the National Assembly current moves to make laws that will compel   such companies to be listed at the Nigerian Stock Exchange (NSE).

“Federal government incentives approach to the issue since the beginning of privatization in 1999 has failed,” Kurfi said.

Kurfi said that the current moves by the American Tower Company (ATC) to acquire the Baharti Airtel’s more than 4,800 telecommunication towers in Nigeria brought to the fore some of the inadequacies   of the privatization laws.

It will be called following the major national telecommunication companies divestment from the operation of communications towers, most foreign concerns had moved in to take over the management and operations of the towers.

Mr. O.P Ezeagu, Chief Executive Officer (CEO), Solid-Rock Securities and Investment Plc attributed government poor management to “interest driven advice.”

Ezeagu said that ATC aggressive bid for Airtel’s towers remains a manifestation of the collaboration between some Nigerian elites and foreign investors to illegally appropriate the nation’s commonwealth.

He also said that sustained growth and expansion of the nation’s employment space would remain elusive without making privatization an all inclusive programme.

“Federal government through the regulators must consciously overall the laws moderating businesses, especially businesses that are bye products of privatization programme to be listed on the Exchange,” he said.

Mr Christain Udechukwu, Founder of Business In Africa Events (BIAE), urged government to draw inspiration from US economic policy that prevents foreign companies from owning national critical infrastructure.

Vanguard