The proposal by the Economic Management Team that the Federal Government should sell off some national assets to shore up its depleted foreign reserve and strengthen the economy against recession is a sensitive matter that should be handled with caution. Although the details of the assets proposed for sale have not been released, the government has said that it intends to divest itself of at least five percent of its equity holding in the lucrative Nigerian Liquefied Natural Gas (NLNG).
The Minister of Budget and National Planning, Udoma Udo Udoma, has acknowledged the plan to sell some assets to get immediate funds to reflate the economy and implement capital projects in the 2016 Budget. He argued that government needs to inject huge funds into the economy, because the country lost almost half of its projected revenue through the crash in oil prices and the activities of vandals in the Niger Delta. The government, he added, urgently needs funds to meet the shortfall to effectively implement the budget. The government is said to be expecting between $10 and $15 billion from the asset sales.
Expectedly, the proposed sale of national assets is generating ripples in the polity. Many Nigerians, including the former Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo, have strongly opposed the sale. The Nigeria Labour Congress( NLC) and the Senate have also kicked against the plan. The Senate’s rejection of the proposal followed the recommendations of its ad-hoc committee. In the alternative, the lawmakers offered 20 strategies to end the recession.
However, business icon, Aliko Dangote, Emir of Kano, Lamido Sanusi 11, and Senate President, Dr. Bukola Saraki, support the plan, which they say will help the government to navigate through the present economic recession. Beyond the outright sale of some national assets, there are also reports that government plans to concession some national assets to some private concerns over a long period
Everything considered, we are opposed to the disposal of Nigeria’s assets. If at all the government must sell any wasting assets, a proper audit of the assets must be carried out to determine their worth. Hurrying to sell assets without an audit will make no economic sense. Government should not play into the hands of unscrupulous businessmen and their proxies who may be waiting to take advantage of the economic crisis in the country to buy off choice government assets at a pittance.
We advise government to be circumspect on the proposed sale. Fighting economic recession with the sale of national assets is not the best way forward. Let the economic management team explore other strategies to get Nigeria’s economy out of the woods. Selling of our national assets is likely to enrich only a few privileged individuals at the detriment of the country and the vast majority of the people.
It will be recalled that the previous sale of some national assets such as the defunct National Electric Power Authority (NEPA) and the Nigeria Telecommunication Limited (NITEL), yielded little or no visible economic gains to the country. In that regard, government should not resort to easy, quick fix approaches to getting funds.
We urge government to look elsewhere for funds to reflate the economy. It should restore credibility to governance by stopping policy flip flops, demonstrate commitment to the prudent management of resources and institute fiscal measures that can stimulate the economy. A hurried auction of our national assets will shortchange the country. Government should think more about Nigeria’s future, and not the short term gains that the disposal of public assets can bring.