Dangote to FG: Sell NLNG, beef up reserves, and see if we won’t be out of recession by Dec
Aliko Dangote has prescribed ways through which Nigeria can get out of recession before the end of 2016.
In an interview with CNBC Africa, the billionaire said: “The only way for us to get out of this recession is to make sure we move into action quickly; action by diversifying the economy quickly.
Here are the details of Dangote’s prescription:
SELL STAKE IN NLNG AND AFRICAN FINANCE COOPERATION
“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 organisation.
“What we need to do now in my own thinking… we have a lot of assets to sell. We can sell part of the joint venture; part of the shares. You know government normally owns 60 percent.
“We can sell in an open tender be it Chinese. We can change the term and make it an operating one, just like what we have in NLNG. We also have another asset I think we don’t really need.
“The African finance corporation; it can fetch them $800million easily. My own suggestion before was that they should even sell 100 percent of NLNG. I don’t think government should be in any business of investing in sectors of LNG.
“A company like that, with earnings of $1.5 billion on the average, they should get anywhere between $12 billion and $15 billion.”
SHORE UP RESERVES WITH NLNG SALE PROCEEDS
“You will not believe that the crisis that we have today, if we have $15 billion, adding it to our $25 billion, that is $40 billion reserves. That will give confidence, confidence will come back, then government will back it up with proper economic policy, where people can see the roadmap.
“Latest by fourth quarter we will be out of recession. It should be a partnership between government and private sector. We have all the answers, Nigeria falling into recession does not really scare me, if we take action.”
NAIRA AT 250 TO THE DOLLAR
The businessman said if the government boosts reserves as suggested, the naira may fall to 250 to the dollar and help the economy.
“Once we can sell assets, and put $15 billion together, you’d be very shocked at how much the dollar will actually drop, you can easily see 250. What is happening today is mere speculation.
“To currency, everybody will speculate, banks will speculate, companies will speculate, individuals will speculate, because if you have money you want to send in from abroad you will keep sending in trickles.
“If you know that CBN has $40 billion in reserves today, if you have $100,000, you might even sell it forward because you know that this rate is going to crash and you must quickly sell it.”
OTHER THINGS WE LEARNT FROM DANGOTE’S INTERVIEW
- India has no oil, yet has over 2 billion tonnes in refining capacity
- Nigeria imports poverty and export jobs
- We do not produce up to five percent of the clothes we wear
- Government should not be in the business of building factories, but just collecting taxes
- China has more than 500 billionaires on the Forbes list and over three million millionaires
- If I have to build a road of 1,000 kilometres in Nigeria, I don’t have to waste years talking about it. I raise money and build it, and hand over to government after 20 to 25 years.
- If not for Dangote Cement, government will have to put down $2.5 billion dollars in 2016 to import cement.
- We need 65 million cubic metres of sand for Dangote refinery.
- Dangote Refinery mechanical completion will finish by 2018, but oil will flow into the refinery by first quarter of 2019.
PMB seem to only know cattle politics and economy. This president is incompetent and lacks vision beyond his presidential various ambitions. We are in trouble! His success at the polls brought the best out him – that wicked shool teacher of 1984. We are all kneeling-down, hands-up and ‘picking pins’ instead of developing. What blinded Nigerians? Why couldn’t we see beyond Buhari and Jonathan? Why didn’t we question Buhari’s intellectual capacity. This is someone who’s never given a public lecture post his military/leader past aside from speak to VOA Hausa service, he never lent his ‘credibility’ to a board of a company or think-tank as many former leaders will do. We all must rise and take back our country, Nigeria and the future.
Dear Mamman Bako
I agree with you, However recall that what many Nigerians wanted then was an alternative to PDP we were already disillusioned about any progress the the PDP government could achieve. Maybe if there hadn’t been a crash in the oil price,this deficiency about his leadership qualities might not have been exposed. I still believe the best option to economic well being is to restructure the economy with considerations to resource control by states, sharing of corporate taxes and VAT, rail and waterways management. The Federal Government is large and more economic powers should be given to the states. This would create healthy competition and the state that wastes its own resources and opportunities will have the wrath of its people to incur.
Kayode Lawal.
With your Albert Einstein or Maynard Keynes intelligence what is your suggestion to get Nigeria out of a mess with a long backdrop in the mindless stealing and mismanagement of the nation by ‘geniuses’ like OBJ and GEJ compounded by the destructive activities of Niger Delta militants masterminded by corrupt politicians ? You are not Maman Bako. You probably Nnamdi Emeka. Your constant abuse of great man like PMB only shows how little men dare great people.
Government should consider this kind of advice from this influential Bussines Man.
I think it makes very little sense for d govt to sell one of its most prospective ventures to buy its way out of recession.this particular recession.wat will happen wen the next recession came calling?by the way,govt have other ventures to sell but i think nlng is a no no.
I agree with u. It’s not worth the risk at this early stage. And besides nlng is the most profitable venture of Nigeria at the moment even at the state of global crises and recession. Who even that is interested should go n buy shares in the company Ltd not the entire thing. Even after dangote lost over $5billion there was no news of him selling his assets.
Thank you for this comment. #no##no#.
Yes Alh Dangote, you may sell some assets in order to get out of trouble, but I don’t think it will be your most promising assets that you would sell. Why NLNG?
Yes when you have many assets & fall into financial problems you can sell part & inject the fund into your business & even settle liabilities & pick up. But in situation where that’s the only viable asset you have amongst all your assets, what will happen if you part with it?
Baba gana, I agree with you in toto. This advice should be taken with a pinch of the salt. He said if we shore up the reserves the value of the Naira will appreciate and that the recession will then end. This appears more like voodoo economics. We didn’t get into recession because the Naira depreciated. Rather the value went down because of the recession caused principally by inflation that has affected production and savings. How do you dispose off your most valuable asset to solve a transient problem?
there’s need for a domain set up by govt where public views n opinions will be welcomed n taken seriously
This man wants to buy NLNG.
The day will come when you all will wish this advice was taken
That day won’t come @Usm. This advice is self serving. No sensible person sells his most lucrative asset to get out financial trouble. That is so Esau-like.
This look sound an advice. But Dangote can do that as an individual because he has the sole authority. But government can’t just take that decision in a fiat. We are speaking of public property.
This is my country, nobody suppose to harass me.police and soldier never agree for my country.
Because of all this BAD things.Things go dey spoil for country, ZOMBIE want be oga how zombie go be oga Zombie na zombie ooo
What is this NLNG please
Nigeria Liquefied Natural Gas. Regards.
This advice though looks to have the best of intentions is kinda sinister…..(seems to have the best intentions just like the free dollar market approach the CBN adopted which saw a rapid more than 100% fall in so short a time). I don’t think it’s the best Nigeria can do right now…….I don’t think it is the only way out as he put it. My only worry is that from trends, our ‘non-thinking’ government might swallow it hook-line-and-sinker.
I want to give this government benefit of the doubt until they prove otherwise. Only a gullible person will swallow this hook line and sinker.
I think dangote is absolutely right. That’s a fantastic solution to get us out of this mess.
I don’t support or buy the ideas of selling our national assets . That suggestions itself is a fraud . I am inclining to think that Dangote is flying a kite . He must be acting as Agent for some external vultures who want to reap where they have not sown .
Smart observation.
Very smart observation. I don’t think we have to sell our NLNG to get out of recession. There must be a way out.
Selling NLNG is not the only option there o
I tell u it is good to profer sounding solutions to national pitfalls however, the onus lies with ho funds are being managed. It I not the question who buys or sell. My challenge is who, how these funds are utilise to affect the poorest man in the hidden remote hinteriors o Nigeria. We hear huge funds bein recover by governmental institutions butthat lies the end of the story. Let’s not forget that the problem lie not with Nigeria rather than than workable institutions. We must mov forward with a workable institutions and polices then shall shall th governing elects follow suit.
Although it’s a good advice by Mr dangote but you don’t solve problem with one perspective, many ways enter the market, so we need to think deep before taking any action… Regards
I hope the proposal is not to sell Biafran natural gas asset?
please ur idea is not adviceable @tall
What works for a one man business may not work for the country. Too many interest. We lack the structure to manage our resources and liquid cash. So sell the failed refineries so we can stop oil imports. The cause and effects don’t match to warrant sales of a booming asset.
You have spoken my mind. If we must sell asset, why not sell the failed ones rather than selling the most lucrative one. Let sell our redundant refineries, anyone that meetup with the requirement in respective of nationality or tribe, let them have it.
Nigeria government supose to have 80% company’s when the pravetise mor dam electricity supose to be stabel dat we bring dow d economic high rate but who will do it
Mr Money has his agenda
I disagree with Dangote. NLNG is one of our best assets. All countries are moving from crude oil to GAS. Who is going to buy the asset? Dangote? Big companies e.g. Shell is moving away from crude oil to Gas.
Who are those that will buy NLNG? Why can’t we sell the FGN?
Dangote should go and build his own with partners! Why is he with his likes’waiting for government (public) properties. If they have the money to float LNG, they should do so as obtainable in other countries – period!
we should not sell our national assets oo