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How to save the economy, by Dangote: Business : Nigerialog.com - Nigeria's Premier Online Forum

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How to save the economy, by Dangote

By: dayan (M) |Time : September 17, 2016, 08:10:10 AM




•Says ‘we need to sell off some of our assets’

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.

Source

Re: How to save the economy, by Dangote

By: dayan (M) |Time : September 17, 2016, 08:17:24 AM
I respect business men and take their opinions over those of politicians and government officials any day.
In that light, I agree with Dangote that we should sell some of our assets, like our some interests in LNG.

However we should NOT sell ALL 100% in LNG (I even suspect that Dangote might be eying that ), AND certainly we must not sell our interest in the African Finance Corporation, particularly when it would only fetch us a paltry $800 million.

In any case some assets are "unsalable" -not that they cannot be sold, but rather that it would be very very foolish to sell those types of asset.  AFC is Nigeria's pride in Africa. Pride is priceless!

We have money -the politicians stole it, and Buhari was elected to get us those money back.

Someone said sell the presidential aircraft fleet, and I say YES -HELL YES!  8)

Re: How to save the economy, by Dangote

By: alagbe003 (M) |Time : September 17, 2016, 10:59:22 AM
We do not need to sell off assets that has the potential to generate revenue later in the future. The business men and our politicians put us where we are. Enough of all their advices filled with ulterior motives

Re: How to save the economy, by Dangote

By: Gideon |Time : September 17, 2016, 02:49:12 PM
I agree with dangote... First thing to sell are those presidential aircrafts

Re: How to save the economy, by Dangote

By: Adenosine (M) |Time : September 17, 2016, 09:34:45 PM
Dangote man of brain. Entrepreneurship idea, you want to buy it from Nigeria abi. You're not Nigeria president but you are the one dominating Nigeria economy, even you will be the one to feel this recession much because I can't imagine how much you are losing per day because of this economy. Just tell Buhari to will everything to you and take charge. I know you will manage excellently....

Re: How to save the economy, by Dangote

By: goldpeace (M) |Time : September 17, 2016, 09:52:38 PM
We do not need to sell off assets that has the potential to generate revenue later in the future. The business men and our politicians put us where we are. Enough of all their advices filled with ulterior motives

I agree  with you that his comment may have an ulterior motive but its better to sell a part to sustain the rest. My only problem is, will the found be well managed and well accounted?

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