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Tag: privatisation

  • Why we are against privatisation, by NLC

    The Nigeria Labour Congress (NLC) said it is against the privatisation of public enterprises.

    It said attempts by the Federal Government to sell public assets, would deny ordinary Nigerians access to services such as power, health and education, as they  would be out of reach of the citizenry.

    Speaking at its 17th Harmattan School for members in Abuja, NLC President, Comrade Ayuba Wabba, urged the government to adhere to global best practices as these services are considered as the fundamental rights of all citizens.

    “We still believe that these public institutions are established for public good and to serve as social service point for the fore runners. So, we say no to privatisation of public institutions and this is the position of the Public Service International, where they said all these services are not for sale,’’ Wabba said.

    While noting that no privatisation has ever worked in Nigeria, Wabba said privatisation under any guise, including Public Private Partnerships (PPPs), was not the solution to the poor performance of the public sector.

    He said more than 70 per cent of the population live below the poverty line. “In fact, a number of international economic reports forecast that despite the significant difference in our population size, Nigeria may soon overtake India as the poverty capital of the world,” Wabba added.

    According to him, the reasons for endemic poverty in Nigeria are not far-fetched. “Our economic structure does not provide the enabling space for mass industrialisation imbued with the capacity for sustainable jobs. Our public policies and consumption pattern still encourage the export of jobs and the import of poverty,” he explained.

    Wabba said unemployment rate in Nigeria increased to 18.80 per cent in the third quarter of 2017, from 16.20 per cent in the second quarter.

    According to him, unemployment has remained high with an alarming proportion of the youths jobless.

    His words: “The few that have a semblance of employment operate under very precarious conditions denoted by job insecurity, poor work conditions and gender discrimination.

    “The trend of factory closures has continued to spiral out of control, turning our once lively centres of economic productivity into worship and entertainment centres.

    “The crisis of widening unemployment in Nigeria has been exacerbated by indiscriminate sack and retrenchment of workers by some public and private employers.

    “Unfortunately, the different levels of government that should be more concerned about protecting our people are the ones leading the campaign to push more Nigerians into the unemployment market.”

  • ‘Nigeria saves $3b from privatisation’

    The privatisation and commercialisation process was for the benefit of the country’s economic recovery and its citizenry’s wellbeing. The exercise freed $3 billion spent on public enterprises yearly.

    The savings from the process were in terms of subventions, waivers and unpaid taxes of public enterprises.

    The Director-General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, made this known in a statement in Abuja, at the dinner/award night in commemoration of the 30th anniversary of ‘Reform, Commercialisation and Privatisation in Nigeria.’

    He said the private sector has been positioned through these reforms to become the engine room of economic activities and infrastructural development, while government focuses on governance and creating an enabling environment for businesses to thrive.

    Okoh added that the programme was not designed to share the country’s national assets to a few rich people as erroneously believed.

    “We are not replacing public monopolies with private monopolies. Rather, in our determination to be unyielding and uncompromising in the pursuit of the best interest of this country, we are removing the financial burden, which these enterprises constitute on the public purse.

    “We are also releasing resources for the essential functions of government. This essentially was the mandate given to BPE to pursue this vision thereby contributing to the socio-economic development of Nigeria,” he clarified.

    According to him, a less known but very important aspect of the BPE programme with far reaching impact was the reform of sectors to provide the enabling environment for the private sector to thrive.

    He said the Bureau has initiated and executed far-reaching reforms in telecommunications, pensions, seaports, debt management and solid minerals.

    Most recently, it executed the power sector reform that led to the successful unbundling, privatisation and in some cases, concessioning of the successor companies created out of the Power Holding Company of Nigeria (PHCN).

    The DG said the programme consisted of reform, commercialisation and privatisation in various sectors of the economy including aviation, development finance, postal sector, downstream oil and gas and other initiatives.

    “It also consists of major infrastructure areas like roads, railways, airports, national inland waterways and the special economic or free-trade zones,” he added.

    He said the National Council on Privatisation (NCP) and the BPE were pursuing the current transactions with renewed vigour, confidence and in a more responsible manner, adding that the BPE had a new vision for the future that was based on rediscovery and repositioning.

     

  • Kano DisCo seeks total privatisation of power sector

    The Chief Technical Officer, Kano Electricity Distribution Company (KEDCO), Mr David Olu Omoloye, has advised the Federal Government to completely privatise the power sector so as to get the best form it.

    Speaking during an inaugural and investiture ceremony the Chairman, Nigerian Institution of Power Engineers (NIPE), Kano State Chapter,  organised for him and other executives of the association in Kano yesterday. he said privatisation as well as injection of the right tariff structure that protects the poor and encourage industrial activities have the potential to encourage the socio-economic development of the country.

    Omoloye said a right energy mixture was also required to fully optimise all available power resources, with special emphasis on renewable energy development balanced with non-renewable.

    While, acknowledging the giant effort made by the country in deregulating the power sector, he said lamented the increasing gap between power demand and supply in the country.

    “Power is the heart beat of a nation. The social economic problem in Nigeria has it root cause in the under-development of the power industry. In the community of nations, Nigeria seems to have been left behind on the power industry development.

    “The ever increasing gap between demand and supply has been a great challenge to Nigeria development. With increasing population of Nigeria not balanced with power demand, the urgent need to close the gap cannot be over-emphasised,” Omoloye stated.

    He added that since power development was highly capital intensive, the investment required to raise the bar of the industry to comfort zone cannot be singlehandedly handled by the government.

    “The solution lies in total privatisation of the power industry to allow capital inflow couple with right  tariff structure that protects the poor and encourage industrial development also, a right energy mix is required” he  stated.

    Omoloye said NIPE under his leadership would be teaming up with other stakeholders to lift the state, and Nigeria at large to a position of excellence in power delivery.

  • Privatisation of public enterprises: Japan vs Nigeria

    THE Oxford Advance Learner’s Dictionary 1995 Edition, defines the word “wisdom” as the ability to make good and serious judgment because of one’s experience and knowledge. Making good judgment is not a common thing, probably because the Bible tells us that wisdom is God’s gift. The world is in turmoil today because many leaders do not make good judgments. So, though all nations, plan, only a few whose planning activities are guided by wisdom achieve their desired objectives. Whereas the Japanese privatization was characterized by wisdom, the Nigerian one was not guided by wisdom. The purpose of this article therefore, ‘is to compare the Nigerian privatization experience so far with what Japan did so that those who are influencing development policy in Nigeria can learn from the Japanese experience.

    The history of Japanese privatization cannot be separate from the nation’s development experience. Japan claims that its origin dates back to 600 B. c., though, more objective sources suggest that the existence of Japan dates back to about 300 B. C.(Hall, 1971). That explains why the Japanese government celebrated the 2600th anniversary of the nation with great publicity in 1940. It is believed that the Japanese derived most of their culture from China, Korea and other South-east Asian nations (Reischauer, 1970). Japan as such, is a younger nation compared to Korea.

    The period before the end of the seventh century is referred to as the transition period, while the period eighth through the first half of the nineteenth century is described as the experimental period in Japanese history. Japan, like China, was ruled for centuries by dynasties (lines) of kings. Fujiwara, Kamkura and Ashikara, were some of the dynasties up to the 16th century. Succession was a serious problem in Japan. Japan was in serious confusion during the first half of the 16th century. That was the situation with Japan when the nation had its first encounter with Europeans. The Portuguese were the first to enter Japan in 1543. Christian missionaries introduced Christianity into Japan during the period 1549-1551. Confucianism and Buddhism had been introduced into Japan in the sixth century. The Japanese government executed some missionaries and native Christians in 1593 and expelled all other foreigners at about 1613 before going into seclusion (Hall, 1971).

    Japanese ancient history is marked by a series of famine years. Peak periods of crop failure in 1675, 1680, 1732, 1783-84, 1787 and 1833~37 gave rise to some 20 recorded famines (Hall, 1971). Under that condition, the population was the scapegoat. The series of famine years in the countryside brought the popular mood in the Tokugawa regime to the break-point and peasant ‘disturbance mounted. By the 1850s, the Tokugawa Shogunate’s problems became more political than economic. The nation was facing increasing foreign pressure to open up to the outside world. The internal and external pressure combined to break down feudal structures of the regime. The military administrators (the sumarais) in Japan in the 17th century mainly had military training, but the Tokugawa regime had a special thirst for learning. Consequently, the Sumarais in the period cultivated a balance between learning and military training. The rural and city populace also shared in the Tokugawa’s drive for literacy. Science and technology up to the Tokugawa period remained primitive. Technology remained artisan; the more commonly used agricultural mechanization instruments were draft animals, plows and hoes. Land remained the most important resource, with much of it in the hands of small number of wealthy people. Land deals were often covered by subterfuge.

    During the middle of ‘the nineteenth century, Japan remained a closed society and the nation achieved feudal stability. All efforts by Europeans and Americans to establish friendly relations up to the middle of the nineteenth century were rebuffed, because they were seen as developments likely to introduce bad influence into Japan. However, Japan was forced to open her doors to the West as from 1854. After many trials, the United States in 1854 through the threat of her naval fleet forced Japan to open her ports to American ships and trade. At the time Matthew Perry, the American naval officer, entered Edo Bay in Japan, on board the steam frigate Susquehanna in 1854, most Japanese had never seen such a vessel much less a whole flotilla (Time Magazine, 1983). The Japanese quickly realized that the time to remain in seclusion was over. Japan quickly signed a series of forced-treaties from 1854 to 1858 with America and other Western nations. That led to the subtle change of government known as the Meiji Restoration of 1868. The Japanese quickly realized that the way forward was to learn from the West. That regime quickly made changes in the structure of government and educational systems. By 1875, there were some 600 Western experts hired by the Japanese government and some 3000 foreign advisers were invited into Japan between the signing of fundamental treaties and 1890.

    The Restoration met Japan an agrarian nation. There were few, if any industries of importance in Japan at that time (Stead, 1906). The government did not waste time establishing model industries which encouraged Japanese to learn and acquire knowledge and skills to build the factories modeled after those set up by government. Most of the public enterprises built by Meiji Japan lost money for a long time. However, because the primary objective for establishing them was for the citizens to learn from them, promote industrialization and establish private ones to demonstrate that Japanese have  learnt  and acquired the relevant capabilities to build and run similar plants and industries, they could not be sold till the desired objectives were achieved ( Stead, 1906). Japan achieved rapid industrialization in the 20-year period 1886-1905.

    The Nigerian privatization case is quite familiar.  Britain granted Nigeria flag-independence in 1960. Westerners have since been thinking for Nigerians. The only theory of development known in the West is that capital investment (technology transfer) is the primary source of growth and industrialization. Though Westerners are wrong, Nigeria has since been involved in laughable campaign for foreign investments, direct foreign investments (DFIs) especially, so that Nigeria can achieve effortless development. Nigeria’s main strategy for achieving the overnight development is erecting infrastructure to attract foreign investments. While governments erect roads, electricity and telecommunication infrastructure, it is believed by virtually all Nigerians that DFIs will erect the needed industrial plants. Nigerians do not believe that learning from Europeans and Asians is the way forward. That is the thinking that guided the establishment of public enterprises in Nigeria. That is still the thinking guiding Nigeria’s development planning today. It could only lead to rot. The Nigerian privatization had to be the scandalous one as revealed by the Senate probe. Nigeria’s privatization was meant to enable the rich (foreigners and nationals) to acquire the liquid assets of government in banks, the oil and gas sector, power sector, real estate, etc., at little or no cost. The effort of the rich in government and in the private sector now through the Petroleum Industry Governance Bill (PIGB) and similar other bills is to acquire the oil and gas deposits in the Niger Delta (Ellah, 2018). The strategy is for government to acquire the assets and sell to the rich. May God save Nigeria from the disuniting impact of greed.

     

    • Prof. Ogbimi writes from Obafemi Awolowo University, Ile-Ife.

  • Ondo saw-millers protest natural resources privatisation

    After series of failed promises and alleged persecution which recently culminated in the arrest of some members of the Big Road branch of indigenous saw-millers’ association on Sagamu-Ore Expressway, leaders of the group have taken their protest to Akure, the state capital.

    They also met with the leadership of the House of Assembly.

    Their chairman, Chief Mayegun Oloruntobi, who was supported by other association members, told reporters that they were initially happy when Governor Rotimi Akeredolu introduced a privatisation policy through the Ministry of Natural Resources.

    The saw-millers said they were convinced that it would bring more social amenities, as the governor promised during the kick-off of the programme.

    Oloruntobi said the hope that the area would benefit from the privatisation policy, being indigenes and stakeholders in the sawmilling business to support the government, was soon dashed.

    The chairman recalled that trouble started when the core investor in the plank and forestry business, West Africa Plantation (WAP), increased the tariff paid to the government.

    He said this is because they are mostly APC members who contribute to the progress of the state.

    The saw-millers regretted that despite their cooperation, the core investors allegedly used “retrogressive and unbearable policies” the saw-millers complained about.

    Oloruntobi said: “WAP later ordered us off our business environment, but the state government, through their official, told us they had no hand in it. So, WAP’s director, Mr Umeh, who has been the intermediary, assured us of his company’s good intentions. But he has turned around to arrest our members and has since refused to meet us by unilaterally cancelling scheduled meetings.”

    Efforts to speak with Umeh were unsuccessful last night.

  • Nigeria can raise $500b from asset privatisation, says economists

    Economists yesterday listed ways the Federal Government can raise up to $500 billion from liberalisation and privatisation of assets and sectors within five years.

    The Chief Executive Officer (CEO), Economic Associates, Dr Ayo Teriba, made the recommendations in his lead paper presented at the first 2018 monthly seminar of the Ibadan School of Government and Public Policy (ISGPP), yesterday.

    Speaking on the topic: “Transiting from Bust to Boom: Fiscal, Financial and Infrastructure Options,” Teriba noted that rather than borrowing to fund the budget and pay other debts, the Federal Government should simply liberalise certain sectors of the economy and privatise all infrastructure to raise up to $500 billion in five years. Teriba posited that liberalisation, breaking government monopoly by licensing new entrants have worked in the telecommunication sector which confirms that it can also work in aspects of rail and road transport, health, education and sports.

    By liberalising some sectors, embracing joint ventures as done in the oil and gas sectors and partially or wholly privatising assets, government will realise the revenue needed to shore up foreign reserves, boost non-oil revenue, build more infrastructures and also widen access to finance for the Nigerian business people.

    According to him, partial privatisation and  joint ventures should also work for refineries, pipelines, power transmission and some aspects of rail, if embraced.

     

     

     

  • Fed Govt eyes N300b privatisation cash to fund budget

    The Federal Government will be raising N300 billion from privatisation of public enterprises to fund part of the N2 trillion deficit in the 2018 budget, Renaissance Capital (RenCap), an investment and research firm said yesterday.

    In an emailed report to investors, Sub-Saharan Africa Economist at RenCap and co-Author of the Fastest Billion Yvonne Mhango, said  Nigeria’s high ratio of debt service costs to revenue has spurred the Federal Government to reduce its borrowing.

    “ It plans to partly finance the 2018 budget deficit with new borrowings that will amount to N1.7 trillion half of which will be sourced domestically. This is in keeping with the Federal Government’s plan to lower debt servicing costs by increasing the share of foreign debt in public debt from 20 per cent to 40 per cent by 2019. Domestic debt service costs are 10 percentage points higher than for foreign debt. The remaining N300 billion of the deficit will be funded with privatisation proceeds,” she said.

    Mhango said she was positive about Nigeria in 2018 because of its stronger growth outlook, improved external position and prospects of lower interest rates. “Yes, we do expect the budget deficit to widen, but we are comfortable with the financing gap because it will still be lower than the International Monetary Fund (IMF)-recommended three per cent of Gross Domestic Product (GDP), and it does reflect an increase in capital expenditure spend, which is positive for growth.

    The downside risks to our outlook include a deterioration in the oil sector’s outlook and escalation of political instability in the run-up to the February 2019 elections,” she added.

    Continuing, she added: “As we expect headline inflation to have slowed to 14 per cent this quarter, as against 16 per cent year-on-year in September, we think the committee may start cutting the policy rate at the March 2018 meeting, by one percentage point. Additional arguments in favour of looser policy are inflation is not demand-driven”.

    In all, she said two percentage point rate cut is likely in 2018. “We believe this will complement the authorities’ efforts to reduce interest rates on treasury securities by raising the share of foreign debt in public debt. The risks to our view include a fall in oil prices and/or production, which would undermine the naira and compel the maintenance of a tight policy stance,” she said.

    Sheaadded that reforms targeted at improving tax administration and a planned excise tax also support an increase in revenue. This could be further bolstered by a Value Added Tax (VAT) reform and the removal of exemptions.

  • How Eleme Petrochemical proved privatisation is key, by BPE

    How Eleme Petrochemical proved privatisation is key, by BPE

    The narrative is alluring but few would have bet on that prospect in 2004 when the Bureau of Public Enterprises (BPE) set in motion the privatisatisation process for Indorama Eleme Fertiliser & Chemicals Limited (formerly Eleme Petrochemicals Company Limited). Today it’s a testimonial that privatisation is the way to go, writes AKINOLA AJIBADE

    Eleme Petrochemicals Company Limited (EPCL), located in Port Harcourt, Rivers State, is a petrochemicals complex originally fully-owned by the Federal Government and commissioned in 1996. Although constructed to international standards, located to take advantage of Nigeria’s abundant supplies of natural gas, and designed to manufacture products for which there was consistently high demand, EPCL was never managed properly, at no time operated to its potential, and was a significant loss maker and drain on the state treasury.

    The company operated for about nine years from 1996, never operated effectively, although it was technologically a state-of-the-art facility. Severe management problems and continuing financial losses led to the Federal Government’s decision to privatise it.

    EPCL was one of the most challenging enterprises the BPE has privatised in terms of the impediments, which impinged the company’s ability to achieve near-full capacity and which led to consistent losses .The impediments proved to be enormous challenges, which BPE faced and had to surmount in the course of its quest to privatise EPCL.

    According to Sunday Jonathan and Ehis Nzewuji  of the Public Communications Unit of the Bureau of Public Enterprises, they involved colossal debt burden such as project finance debts: The major impediment to EPCL’s existence and privatisation was the huge project finance debt of $53 million owed to a consortium of international financial institutions. The repayment of the debts was tied to total proceeds from export sales of all the company’s outputs. The consent of the creditors was required before any transfer of ownership (via privatisation) could be effected on the company. This was because of the nature of the loan agreements, which Nigerian National Petroleum Corporation (NNPC) (as EPCL’s parent and guarantor) entered into with the various consortia.

    To begin the privatisation, the BPE sought and obtained the approval of the National Council on Privatisation to constitute a Federal Government team. The team negotiated with the creditors to release EPCL from its loan repayment obligations, as these debts were part of Nigerian’s debt stock to the Paris Club. The team also obtained the creditor’s consent to privatise EPCL.

    There was also the issue of trade debts and statutory debts. EPCL was also indebted to various trade creditors and the Federal Government. These liabilities totalled $259 million as at June 30, 2005. An analysis of the liabilities revealed that 63.6 per cent of the total debt was due to government agencies such as the Federal Inland Revenue Service (FIRS) and NNPC.

    Other challenges included inadequate working capital caused by the restrictive clauses in the project finance loans, which denied the company access to export sales proceeds of its polyethylene and polypropylene products; and absence of the mandatory turn around maintenance (TAM). EPCL’s plants were terribly dilapidated because it had not carried out the mandatory two-year TAM on its plants since it commenced operations in 1995.

    In  2006, EPCL was privatised by the sale of 75 per cent of its shares to a core investor through a competitive bidding process. Little international interest was attracted. The company was sold to Indorama Group for $225 million, without liabilities which were retained by the government. Much of the acquisition cost was financed with debt, with the International Finance Corporation (IFC) lending Indorama $150 million for the acquisition cost and the new Eleme borrowing $130 million for its turnaround programme and working capital.

    It is interesting to note that the available report on EPCL stated that “the absence of the two-year TAM of the company’s plants and facilities made it impossible for the company to achieve profitability” and “the level of the company’s indebtedness also greatly hampered the company’s ability to achieve profitability”, whereas after four months of turnaround maintenance, the company was operating at a healthy profit; for the first full year of operation earned a net profit margin of 36.1 per cent after tax; and in the second full year of operation had increased its net profit margin to an astounding 43.4 per cent after tax. The company was able to pay its owners a dividend of N9.5 billion (approximately $74 million) after only one year of operation.

    The Share Sale and Purchase Agreement (SSPA) between the BPE and Indorama International Finance was signed on February 27, 2006 and the company was handed over to the buyer on October 26, 2006. Following the hand over, the core investor was required to comply with all the covenants of the SSPA including some specific clauses as described in clauses 8.2, and 8.4 of Annexure 1 for a continuous period of five years after the handover date.

    On March 14, 2014, Indorama Eleme Petrochemicals Limited’s management wrote to the BPE intimating her that the company had complied with all the covenants of the said SSPA, including its specific clauses 8.2, and 8.4 and that the company has completed five years monitoring period as at August 6, 2011 since the handover date of August 7, 2006.

    The Post Privatisation Monitoring (PPM) Department of the BPE consistently carried out performance evaluation of the Strategic Business Plans and monitored compliances of EPCL’s covenants as contained in the SSPA within the five year lock- in- period. The verdict was that the compliance status of EPCL is “highly outstanding and commendable as the company exceeded the projected production targets from the first year of operation to date.”

    For instance, from the SSPA in the first year, the purchaser was to produce 85,200 metric tonnes (MT) of polymers, that is, High Density Polyethylene (HDPE) and Polypropylene (PP) but produced 135,000 MT which exceeded what was contained in the Post Acquisition Plan (PAP). This was more than the sum total of what EPCL produced in its 10 years of operation before privatisation. The plants were fully revamped with the purchaser investing about $170 million for TAM. BPE’s conclusion was that “the company has therefore complied with all the covenants in the SSPA.”

    It was that laudable achievement that made the acting President, Prof Yemi Osinbajo a guest of the company on July 27, when he presented a Certificate of Discharge to the Chairman of Indorama Group, Mr. Sri Prakash Lohia and the Managing Director, Mr. Manish Mundra, for successfully accomplishing the post purchase agreement entered into with the BPE on behalf of the Federal Government.

    “Following the 2006 handover, the BPE carried out routine monitoring on the enterprise to ensure that the core investor adhered to and implemented the post-acquisition plan it had laid out for the company. Today is the culmination of that process of monitoring and oversight by the BPE. I am delighted that it is taking place on an inspiring and hopeful note, and that we are all here today celebrating a thriving and promising company. We should not take this state of affairs for granted,” he said.

    According to Osinbajo, the company has turned out to be a huge success story. “I am glad that we’re here today to see one of the success stories of the Federal Government’s privatisation programme. We will continue to support Indorama Eleme Petrochemicals Limited’s expansion ambitions. Our commitment to the privatisation programme is equally assured, and we will continue to do everything to support investors to maximise the potential of their assets.”

  • Senate may seek PHCN privatisation reversal

    Senate may seek PHCN privatisation reversal

    • DisCos are bankrupt, says Murray-Bruce

    Bewildered senators were yesterday told that Electricity Distribution Companies (DisCos) are technically bankrupt.

    Chairman, Senate Committee on Privatisation, Senator Ben Murra- Bruce, told his colleagues that the way out of the worsening power situation in the country was to revisit the privatisation of the defunct Power Holding Company of Nigeria (PHCN).

    Senator Murray-Bruce spoke following a motion on “DisCos, electricity consumers and the burden of overbilling” sponsored by Senator Dino Melaye (Kogi West).

    The lawmaker said those expecting the DisCos to install meters in their houses should forget the idea since it was obvious that the DisCos lacked the resources to buy meters.

    He said: “The DisCos are technically bankrupt; they have no money to buy meters. Unless we revisit the entire privatisation, there will be no solution to the power sector. We have to urgently revisit the privatisation exercise in its entirety.”

    Vice Chairman, Senate Committee on Power, Senator Bukar Mustapha (Katsina North) also stressed the need to address inefficiency in the power sector.

    Mustapha who said the value chain in the power sector is weakest at the DisCos level insisted that the country was sitting on an emergency that should be drastically addressed in the interest of the country and its development.

    He said: ‘The problem we have is the inefficiency within the system which we have actually so far not decided to address. I will give you a small example: Nigeria has an installed capacity of 12,522 Megawatts (Mw) of power.

    “We have non-available capacity of 5,300Mw; we have non-operational capacity of 3,180Mw meaning that what is actually available is just over 4,000Mw out of 12,500Mw.

  • Labour rejects calls for Queen’s College’s privatisation

    The Association of Senior Civil Servants of Nigeria (ASCSN) has flayed calls by the President of Queen’s College Old Students Association, Mrs. Frances Ajose, seeking Queen’s College’s privatisation.

    ASCSN Secretary-General, Comrade Alade Bashir Lawal, regretted that the outbreak of diarrhoea in the school, provided impetus for renewed calls for the privatisation of Unity Schools.

    “In a normal society, what should concern genuine patriots, including old students, is to see how the health issues in Queen’s College can be brought under control.

    “But in Nigeria, since the eyes of the elite have always been on how to sell the 104 Federal Unity Colleges to themselves in the name of privatisation, the diarrhoea outbreak in Queen’s College had provided another opportunity for their self-serving agenda,” the Union lamented.

    The ASCSN said those, including old students of the Unity Colleges, who wished to own secondary schools, should set up their own instead of using every opportunity to start campaigns that Unity Colleges should be turned into their private estates.

    It added that the 104 Federal Unity Colleges had continued to excel at examinations conducted by the West African Examinations Council (WAEC) and the National Examinations Council (NECO).

    “The Unity Colleges were set up in the 1960s by the then Tafawa Balewa Government to act as unifying institutions for children and staff from various parts of the country apart from being models for secondary education in the country.

    ‘‘Since inception in 1966, the Federal Unity Colleges, which had increased from three when it first started to 104 as at today, have continued to fulfil those objectives,” ASCSN pointed out.

    It added that it was, therefore, surprising that instead of nurturing the ideals of the founding fathers of the Federal Unity Colleges, some unpatriotic persons are bent on converting the schools and the vast expense of land thereof, into their private property.

    The ASCSN recalled that few years ago, it embarked on about seven-week strike to prevent the regime of Chief Olusegun Obasanjo from auctioning the schools allegedly to its cronies.