Business mogul Aliko Dangote believes a wave of asset selling by the government could be the saving grace for Nigeria in the face of the current economic recession.
“I think the real challenge for us is now for us to have the political will in terms of selling some assets,” he told the Consumer News and Business Channels (CNBC) Africa yesterday.
“I think it’s an easier route than the IMF (International Monetary Fund) or the World Bank to borrow money, because what you need to do is actually to beef up the reserves.”
Dangote spoke before Nigeria’s credit rating was downgraded to B from B+ by S&P Global Ratings yesterday.
He urged the government to sell assets in some of its joint ventures with the private sector in an open tender process.
He said that Africa Finance Corporation – a development finance institution established in 2007 – would fetch close to $800 million while government s should also look to sell 100 percent of the country’s stake in Nigeria LNG Limited.
“If I had challenges in my company, I would not hesitate to sell assets, to remain afloat, to get to the better times, because it doesn’t make any sense for me to keep any assets and then suffocate the whole organization,” Dangote said.
S & P branded the economy “weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange regime and delayed fiscal stimulus.”
The economy is set to contract on an annual basis in 2016 for the first time in 21 years, with its all-important oil industry suffering under weak global prices.
The gross domestic product (GDP) dropped by 2.06 percent in the second quarter of 2016, after falling 0.36 percent in the previous three months.
Dangote said the economy should have been diversified a long time ago, lamenting the overreliance on oil.
But he was optimistic that Nigeria would exit recession by the last quarter of the year and said the country “has all the answers” to bounce back to health.
Something particular caught my eye in this report. That the economy is set to contract on an annual basis this year which will be d first time in 21 years, meaning even Abacha did a better job than baba is doing.
ReplyDeleteWe're on a very long thing oh. 2019, where are thou.
Assets selling? this man is ready to buy Nigeria as a whole, after getting rich through government liberal weaver policies towards you for ages now you want them to sell their assets so you could buy the entire Nigeria for yourself dearizzz God oh!!! You alone Cement, You alone indomie, You alone Salt, You alone flour, you alone refineries for Nigerian crude, in-fact Nigeria is Dangote!!! and you want more.... Tell the government the truth instead of lying to buy the entire economy bros!!!
ReplyDeleteDon't mind Dangote.... He wants to buy the whole of Nigeria.... Which type of advice you expect rich man to give prodigal son,?... Na to buy all his properties including him..... Lol.... He will especially target Nigeria LNG!
Deletehhaa hhaa hhaa aaliko dangote want to buy aso rock.
ReplyDeleteNE pls publish my comments and views or get out of the internet.
ReplyDeleteDangle want 2 buy the whole nija...
ReplyDeleteWhy don't you guys advise government where to get money to run the economy rather than rubbishing Dangote advise... which is better selling what you have or getting loan from IMF at high interest rate? And further enslaving the country for ever.
ReplyDeleteI think Dangote was right. Use what you have to get what you want. I disposed my two cars to get what I needed at a time, but ended up making a wrong decision. Do you think buying government assets is investment when many are relieving their staff their jobs? Borrowing from IMF or world bank will also be a mistake.Let government cut down on their expenditure and manage the economy well and we will get there.
ReplyDeleteNo be hausa man, na only tgem sell naija oil blocks of 80% to themselves. Na same dem give only dangote licence to monopolize everything with 0% tax import duty, yet tgey said he his a rich man. He is number one armed robber in that country, yet he is never probed for all these. Now he wants to buy whole of Nigeria.
ReplyDelete