Orji Kalu Blames Nepotism For Nigeria’s Economic Woes

Former Abia Governor, Orji Uzor Kalu has said Nigeria is economically backward today because many of its government businesses were dominated by nepotism at the expense of “expertise and financial capacity”.

Dr. Kalu, who delivered a lecture at the University of International Business and Economics, Beijing, China, said most privatisation strategy of African nations fail because of wrong policies.

He said the Nigerian Government for instance ignored “a lot of necessary factors” while “handing over companies and businesses managed by government to private businesses.”

In his lecture titled “Economic Diversification: The role of the private sector versus government sector,” Kalu said the aim of privatising most government businesses in the country was defeated due to the wrong steps taken.

“What that has done is that those privatized companies are not faring any better than they were before being sold. Therefore the aim of selling them was defeated as they do not play major roles in leading economic change as expected.” said the former governor.

Kalu expressed regret that Nigeria was still importing refined oil despite being a mojor oil producer.

He also condemned the situation where the Nigerian National Petroleum Corporation (NNPC) controls the country’s oil production.

“If the NNPC were privatized long ago, we wouldn’t be hearing some of the pitiable stories. They should have taken their hands off and focused on policy making and regulations. Because of the stranglehold of the government, the oil industry has failed to meet the expectations of Nigerians.”

Kalu said unless Nigeria diversifies, its economy may not witness new developments.

“The only sustainable option now is to diversify.

“The opportunity cost of the focus on oil is today’s quick rush to beat the tape on what we ought to have done several years ago.

“Today, Nigeria’s government is looking back aggressively on agriculture. President Muhammadu Buhari’s led administration has taken the bull by the horn and is going practical in agricultural sector” He said .