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 previous administration having only a few weeks left to depart. At the union’s National Executive Meeting held in Abuja towards the end of President Buhari’s tenure. 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 President Tinubu-led administration 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.
Editorial
Checkmating ‘One-Chance’ Menaces In PH
Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
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