Privatization and Economic Development

ABSTRACT

This study titled Privatization and Economic Development: A Study of Dangote Cement Plc, Gboko( Plant formerly BCC), critically evaluates the apparent problems that befell the privatization of BCC Gboko, the achievements and challenges of the plant since its privatization
as well as its impact on public welfare through economic development. Privatization—a paradigm shift from a “more government attitude” to a more market attitude” is a government policy adopted in 1986 to propel economic growth and development. Using qualitative research method, both primary and secondary sources of data (interview, focus group discussion and review of literatures) were employed with findings descriptively analyzed. Benue Cement Plc recorded impressive performance from the start of its operation as profit rose steadily from 1986-1997 but started dwindling due to harsh economic environment, age of plant and equipment as well as bad economic terrain characterized by instability of board and poor management. Lack of transparency in the privatization of BCC by the Obasanjo/Atiku led administration has been heralded as one of the major causes responsible for the frosty relationship between the DCP management and the host community (Mbayion). Neoclassical Market-Friendly Counter Revolution Theory with Lord Peter Baur and Martin wolf as its progenitors is adopted as the framework of analysis. The theory advocates for Public/Private partnership in the economy as the private sector alone in Nigeria cannot guarantee efficiency thus, the government will regulate its activities so as to protect the consumers. Findings shows that the privatization of BCC Gboko so far, has not led to economic development in Mbayion, the host community in particular and Benue state in general despite the yearly increase in profits since Dangote’s take-over. This study recommends that: It is a public outcry in the community that the privatization process leading to the sale of BCC Gboko to DIL be re-visited in the name of transparency, an upward review of DCP staff salaries to commensurate with labour inputs, and establishment of a well-furnished 300 beds hospital with state of the art facilities/ equipment to improve the health system in Mbayion.