An Alternative Privatisation Model

By AKINTOLA OMIGBODUN
Whenever the Federal Government of Nigeria, FGN, announces that some venture or other is to be privatised, there is the feeling that the FGN is about to give away something of substantial value for very little in return. Our suspicions, that a great game is on, are heightened when we observe the relatively short period within which bids should be submitted.
Evaluation of bids, the choice of the preferred bidder and negotiations leading to payments by the preferred bidder always seem to go on endlessly. What we find is that the preferred bidder usually has to borrow from the banks all the amounts they require for their investment in the privatised venture. This factor is at the heart of the problems with the model adopted for privatisation by the FGN.

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