Source: FG targets $15bn from proposed asset sale, to insert ‘buy back’ clause
Federal government intends to raise between $10bn and $15bn from the proposed sale of assets to boost foreign reserves, a presidency official has told TheCable.
The official said there was no proposal for outright sale and there was going to be a repurchase clause in any sales agreement signed by the government.
The repurchase option will guarantee that the federal government can buy back any such assets if circumstances change in the future.
The asset sale proposal has been widely condemned after industrialist Aliko Dangote mooted the idea two weeks ago.
“The federal government has no plan to sell off its shares outright in the Nigeria Liquefied Natural Gas (NLNG) Ltd, where it owns 49% shares and the balance 51% is owned by private foreign interests,” the top official said.
“What the government might consider is to reduce its current 49% shares by 5% so that its shares might be slightly reduced to 44% or thereabout to raise the much needed dollars.
“The federal government doesn’t own the entire gas company, and will certainly not sell off its entire shares, but it is open to the possibility of selling down its 49% ownership by 5% or thereabout.”
No decision has yet been taken, the official added.
But the proposal has received the backing of governors and Senate President Bukola Saraki, while labour unions, prominent activists and opinion leaders have opposed it.
“With the shrinking foreign reserves of the country, there is a need to take some drastic steps to shore up the reserves,” the presidency official said.
“An injection of about $15bn into the reserves has a positive impact on the entire economy as a multiplier effect.”
Obviously the sale of assets is not the only way the F.G can raise money. why not think of other avenue to raise money. When the market failed, the government has a big role to play. Why not re introduce gate fees in all Nigeria’s high way and collect as little as #100 from motorists, why not borrow externally ? Why don’t we address the inefficiency in government and make it work ? why don’t we give incentives to the Igbos so that they can produce better quality goods, why dont the revitalise the Ajaokuta Iron and steal mining company, why don’t we encourage tuber production in the middle belt ? once this sale is done, sale property would become a major source of revenue for in coming government.
Re introducing the fees on the highways isn’t one of the options.
You don’t rebuild an economy by torturing an already impoverished people.