Editorial
Stop Privatisation Of TCN, Others
The Trade Union Congress (TUC) of Nigeria is strongly opposing the Federal Government’s plans to privatise the Transmission Company of Nigeria (TCN), Nigeria Post and Telecommunications Services (NIPOST), and Federal Medical Centres (FMCs) across the country.
The labour union said it was antithetical to the last-minute rush to privatise the assets, despite the current administration having only a few weeks left to depart. At the union’s National Executive Meeting held in Abuja recently, TUC President, Festus Osifoh, asked the Federal Government to halt the distribution of N8 billion which had been reportedly released for the asset unbundling of NIPOST until the incoming government took over.
TUC recalled that the previous privatisation of public resources during former President Olusegun Obasanjo’s administration lacked transparency and favoured regime officials and their cronies. Additionally, many of the privatised entities were unstable as the State continued to provide monetary assistance, particularly for the DisCos and GenCos.
We support the TUC’s stance on the privatisation of public assets. The decision to privatise should be left for the incoming government to handle. Privatisation, if executed properly, can bring in capital, expertise, and best practices for the administration of state-owned enterprises.
However, the privatisation of the energy sector in Nigeria, which took place 10 years ago, has not yielded the desired results. In fact, the power supply condition in the country has regressed. Despite a report by the Nigerian Electricity Regulatory Commission (NERC) that the Federal Government has subsidised electricity supply in the country with N35.27 billion, the position remains dire.
Nigeria’s electricity supply is currently oscillating between 5,000 and 7,000 megawatts, which is inadequate for a country with a population of over 200 million. The 11 DisCos and three GenCos are facing various challenges such as under-capitalisation, debts, and technical difficulties, which are affecting their ability to deliver expected services to Nigerians. Unfortunately, five of these companies have been taken over by banks because of their financial distress.
This current state of the power sector demands a complete review of the energy privatisation programme. It is evident that the intended objectives of the privatisation exercise have not been met. To resolve the issues plaguing the sector, it is crucial to acknowledge that a hasty privatisation of the transmission company may not provide a permanent solution. A repositioning of the sector is necessary to ensure better performance and meet the expectations of Nigerians.
The TCN’s technical and commercial inefficiency can be traced back to the public sector management that dominated the electricity sector before privatisation. The transmission system, or national grid, is inadequate to handle the total generation capacity, and the authorities have been slow to expand it.
The privatisation of the transmission arm of the power sector by the Federal Government should be approached with caution. The Tide has always advocated the sale of national assets with prudence. Developing economies require significant State intervention in infrastructure development because of their fragility. However, private-public partnerships can still play a role.
The DisCos have been frequently requesting bailouts, despite receiving enormous sums of government intervention. This shows that Nigeria is not yet prepared for full-scale capitalism. If the TCN is sold quickly, it will cause perpetual economic enslavement for the country. Therefore, any government asset privatisation must adhere to processes that encourage competition, enhance efficiency, and decrease direct government participation in their operations.
Since its inception in 2004, the Bureau for Public Enterprises (BPE) has privatised 142 enterprises, but regrettably, 37 per cent of them (52) are not performing well. The BPE has attributed this poor performance to the hostile business environment in the country, which has caused many private or privatised national enterprises to either close or move to neighbouring countries.
The Nigerian government has been attempting to privatise Nigeria Telecommunications Limited (NITEL) for almost a decade because of the poor state of its fixed-line infrastructure and high levels of debt. Despite Nigeria being one of the world’s fastest-growing telecoms markets, NITEL’s established lines have decreased to fewer than 100,000 from five times that amount in 2001. The total number of subscribers to its Nigeria Mobile Telecommunication (MTEL) mobile unit has dropped to a few thousand from over 1 million. The latest attempt to sell the firm is just one in a string of efforts by the government.
Unfortunately, the greed of past Nigerian leaders has raised questions about the efficiency of our privatisation programme. Clarity and accountability are crucial in privatisation, but Nigeria’s history of corruption has created distrust and suspicion. To address this issue, separate auditing and legislature oversight committees should be established to monitor privatisation deals and prevent fraud.
Transparency in privatisation can create a perception of honesty and accountability, reducing mistrust from citizens. If carried out with sincerity, divestment can benefit various groups. Workers become shareholders, consumers receive better services, fresh graduates and the unemployed can secure jobs following expansion, and the government is relieved of subsidies or subventions.
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
