Olumhense
It seems like a lifetime ago that
business mogul Aliko Dangote set Nigeria alight by proposing the sale of
national assets as a way of getting the country out of its economic
mess.
But the proposal, is actually only two
weeks old. It was on September 13, exactly two weeks ago, that he
addressed the subject of “diversifying the economy quickly” as a way of
overcoming the recession.
He told CNBC, “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.”
Mr. Dangote’s capitalist sentiments were
in the right place. Except that private enterprise is evidently
different from public enterprise. Mr. Dangote can sell anything he
owns, at any time, for any reason, for any price.
Not a government. In any event, not an
elected government. Still, his proposal attracted so much excitement
within the government that within two weeks, the Senate had received the
‘Emergency Economic Stabilisation Bill 2016′, including what I call the
Dangote Design.
In principle, the bill claims it will
achieve objectives that were thought to be the purposes of the
government in the first place.
Basically it is a proposal for emergency
powers, to which I object. The danger is further illustrated by the
new basket of promises contained in the bill, such as raising the value
of the naira and creating more jobs.
On the face of it, if the government
implements the Dangote Design, Nigeria will be awash with funds to
conquer the recession because it will be able to spend its way out of
it.
That is unlikely to happen. To begin
with, even under emergency conditions, the assets involved will take a
long time to sort out and take through a legal process for sale.
Who will be the buyers? Certainly not
foreigners, who are barred by the constitution from investing in the
once revered “commanding heights” of the economy. Certainly not the
PDP-wealthy, who will continue to hide their money.
Perhaps then, the Dangotes of Nigeria?
In the case of Aliko, should he buy, he will damage his brand forever,
as it will be said that it was his plan all along. And why would a real
businessman not make bargain-basement bid?
The point is that while trying to sell these assets may sound good at first, it is only a dangerous and desperate proposal.
The problem is that the current
government arrived in 2015 on a boatload of promises but only a teaspoon
of plans, its election made easy by 15 years of open greed and street
avarice by the party it was seeking to displace.
That party, the PDP, had no principle.
More street carnival than political party, the PDP bandwagon was
followed by Nigerians who either blindly voted for it or permitted their
votes to be stolen.
By 2015, as the party’s internal fault
lines, changing media patterns, as well as the Boko Haram menace made it
easier to expose the PDP’s shortcomings, the need for change resonated
with the Nigerian voter.
That was where we mistook the clouds for
the skies. The All Progressives Congress (APC) displaced the PDP, but
its philosophy was really not different.
Nigerians hoped to see a robust and
dynamic shift that would structurally, fundamentally and philosophically
re-define the meaning and practice of leadership. Such a shift would
have had Nigeria thinking in terms of new possibilities and
opportunities well before the recession took control.
Instead, we dispensed with the element
of urgency. President Buhari spent months looking for the world’s best
ministers, only to appoint the most obvious neighbourhood hands. And we
spent the best part of one year drafting a budget that had more twists
and turns than the Ife-Ore Road, only to discover the numbers in the
document were just…numbers.
That is why we may give all of our
national assets to street traders to market for us in our Monday morning
traffic, but it will not resolve the issue, which will remain this:
when do we move Nigeria away from its dependence on oil?
That answer will depend on whether the
Buhari government can reinvent itself to emerge with a vision which
includes regaining the trust of the people.
So far, the government has not indicated
it understands that this—not the recession, not critics, not the PDP,
not unreturned loot—is the problem. In the past 16 months, it has
blamed the PDP ad nauseam without substituting a productive vision and
dynamism.
In the past 16 months, it has failed to
show real traction in its anti-corruption initiative, with almost all of
the people who looted the country blind still walking free and rich.
While we played the blame game instead of the prison prism, the
recession took the driver’s seat. And nobody is willing to tell
Nigerians that this new driver will be in charge for quite a while.
The truth is that despite a multitude of
symptoms, the patient suffers from one ailment, not several. The
current administration preaches its fidelity, for instance, but it
cannot carry the Nigerian people along because it has mistaken will for
zeal, and motion for movement. Perhaps there is less official impunity
now, but there aren’t more people in trouble for corruption under
President Buhari than there were in any PDP administration.
Worse still, in an alarming
demonstration of how low the ethical bar is, there are far more
compromised people being left untouched by Buhari than there have been
since 1999.
Speaking of low bars, while the
Abuja-Kaduna rail built principally by the Goodluck Jonathan
administration has been inaugurated, notice how poorly it has done in
just two months, with so much mismanagement and broken equipment being
reported.
In any event, when will the government
inaugurate the related Abuja light rail? It cannot schedule such an
event because although $500 million has been spent on the project, it is
not being built.
Why does the Buhari government suggest
that it started on a completely new slate, and that Nigeria does not
have projects and obligations in the area of infrastructure? In a
previous article, I examined Nigeria’s loan deals with China and others
that provide us with several opportunities, including in electricity.
While I do not know how and when the
recession will end, Nigeria’s quest for development and economic
diversification can certainly benefit from the use of a variety of
Infrastructure funds such as the Emerging Africa Infrastructure Fund,
the AfDB’s Africa50 Initiative, President Barack Obama’s Power Africa
Initiative, and the Electricity Africa Act of 2014. During the World
Economic Forum in Abuja two years ago, China offered a huge boost for
Nigeria’s infrastructure development that included up to a new $12
billion facility.
In addition, a country with Nigeria’s
vast population abroad could easily and quickly raise vast
infrastructure funds through Diaspora bonds, an economic tool that has
been used to great effect by such countries as Israel and India.
There are many things Nigeria can do, not just to get out of this recession, but to leap to its rightful place in development.
To deploy a baseball metaphor, however,
you cannot steal second base while standing on first. If Buhari plays
Jonathan, he will be remembered as Jonathan, not Buhari.
Happy 56th, Nigeria!
Copyright PUNCH.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
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Contact: editor@punchng.com
FOR ARISTACHUS NEGATIVE
FOR ARISTACHUS NEGATIVE
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
by Taboola
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Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
by Taboola
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Disclaimer
Comments expressed here do not reflect the opinions of vanguard
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0 comments
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Newest | Oldest
Latest News
2:22 pmAny policeman checking vehicle particulars is on illegal
duty–AIG
2:17 pmCorruption to cost Nigeria up to 37% of GDP if… – Study
2:13 pmBalanced diet
2:02 pmNigeria remains Africa’s Biggest Economy – IMF
1:48 pmDele Giwa: 30 years after, Fawehinmi, activists, want case
reopened
1:41 pmCorruption: Those who eat sour grapes will have their teeth
set on edge – Presidency
1:33 pmU.S. backs Buhari on economic diversification, pledges to
increase FDI in Nigeria
1:20 pmPep Guardiola returns to Camp Nou
1:18 pmBuhari meets Chibok girls, parents in Aso Rock today
1:02 pmSenate to probe judges’ arrest
12:11 pmObanikoro makes shocking revealtions, says he gave Fayose
N2.3bn
11:54 amBeware plastic bottles cause cancer, diabetes
11:51 amNigeria will overcome security challenges soon – Sultan
11:47 amMoney laundering: Fani-Kayode, Usman, get new trial date
11:44 am5 ways to help Nigerian parents utilize modern technology
11:31 amDSS raid: You’re dramatizing fiction, Umana replies Justice
Okoro
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Poll:Is the Ken Nnamani Electoral Reform Committee a waste of time
and resources?
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Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Recession: We’re not
selling off key national assets yet, but… — FG
On September 25, 201612:54 amIn NewsComments
*Saraki on options that are viable
By Soni DanielContrary to claims that the Federal Government has
received the backing of governors to dispose of national assets to
reflate the economy, the federal government has said that it is not
selling off its key national assets as a means of getting out of
recession.
Buhari
Buhari
The Minister of Budget and National Planning, Senator Udoma Udo
Udoma, made the clarification in a statement signed by his Media
Adviser, Mr. Akpandem James and made available to Sunday Vanguard.
Similarly, Senate President, Dr. Bukola Saraki, has explained that
contrary to insinuations that he was advocating for an outright sale of
national assets as a means of getting out of the present economic
stasis, he said what the Senate attempted to do last Thursday was make
available policy options that could lead Nigeria out of recession.
He said 12 options were out on the table and that possible sale of
assets was just one of such options on the menu.
FG on sale of national assets
The minister said in the statement, “The primary objective of
government’s fiscal stimulus plan is not to sell off all major critical
national assets but to source immediate funds to reflate the economy and
implement capital projects in the 2016 budget.
Udoma is said to have given the explanation in Lagos at the weekend
while briefing newsmen on the forthcoming Nigeria Nigerian Economic
Summit coming up next month.
Udoma said: “The government needs to inject a large dose of funds
into the system to get the economy back on track and to faithfully
implement those provisions in the capital budget tailored at reflating
the economy and aiding the diversification process.
“The country has lost almost half of its expected revenue and would
need to urgently source the shortfall to enable the government to
faithfully implement the budget.
“This unfortunate scenario prompted the Economic Management Team to
urgently work out a fiscal stimulus plan to generate immediate large
injection of funds into the economy through asset sales, advance payment
for license rounds, infrastructure concessioning, use of recovered
funds, among others, to reduce the funding gap.
“The other option would have been to source for additional loans,
beyond the level of borrowing already projected for in the 2016 Budget.
This would not be a wise option as it would raise the level of debt
service to an unsustainable level.
“But the government is exploring several angles in the asset sales
proposal including repurchase options, which will make provision for
buy-back of those assets when the situation improves. The Minister
insisted that the country’s economy would not have gone into recession
but for the drastic fall in oil production levels due to disruptions
caused by militant activities.
He said, “At worst, it would have been a flat performance that would
have sign-posted a new curve in the economy trajectory that would
subsequently put it on the path to recovery and sustainable growth.
The Minister said that the Government appreciated that the
down-turn in the economy had brought hardship to the people, but assured
that the administration government was committed to redressing the
situation.
“Our goal is to unlock the economic potentials of the non-oil and
high-employment sectors, so as to achieve a sustainable inclusive growth
that will ensure that the majority of Nigerians become more productive,
thereby reducing poverty.
“Thus, we are deliberately working towards diversifying the Nigerian
economy by ensuring that the non-oil sector drives the economy because
this is the sector that contributes the most to GDP; and, has more
capacity to employ.”
The basic strategy, he pointed out, is to reflate the economy
through fiscal stimulus and strategic implementation of annual budgets.
“What this means is that we are geared to strategically spend our
way out of recession.
“Unfortunately, we have not met all our planned expenditures for
2016 due to low revenue out turns. However, we have ensured that the
resources that we release are targeted at priorities that will stimulate
activities in the economy.
Senator Udoma said bad as it is, the current situation provides the
country with an opportunity to revamp the economy and put it on the path
to sustainable growth; but in doing so, Nigerians must reduce their
demand for foreign products, focus attention on refining petroleum
products locally, return to agriculture, develop the solid minerals’
sector and stay the course even if the price of oil goes up again.
According to him, getting back the economy on the path of
sustainable growth would require the contribution of every sector in
their respective core mandate areas, and collaboration with organs like
the Nigeria Economic Summit Group (NESG) provides a veritable avenue for
forging consensus on issues of national development whilst evolving a
common strategy and policy framework for addressing issues constraining
development.
This year’s edition of the Economic Summit, which holds between
October 10 and 12, is designed to encourage more production and
consumption of Made in Nigeria goods and services. It is believed that
“with more patronage, Nigerian producers will be encouraged to improve
the quality of their products. As the quality of Nigerian-made goods and
services improve, international demand for them will increase.
Saraki’s suggestion
While speaking to a select group of editors in Lagos last Friday,
Saraki argued that borrowing as an option could only help to execute
projects but cannot boost the country’s reserve to stimulate the
economy.
According to him, “It is like a company, you go round to banks to
say, can you borrow me money? And you cannot get money, but you have 100
shares with with a firm, which you are keeping for your children. To
raise fund, you can decide to sell 20 shares.” He maintained that his
position on the sale of national assets was not one influenced by the
need to sell to Nigerians because some people already owned some of
them, insisting that there was nothing wrong in the government reducing
its stake in some of the national assets. “That is the concept I have.
It is not selling to Nigerians with naira because with that I do not
see value added.
“We are in a situation where the forex inflow into the country,
which comes from different sources; government, sales of crude oil;
export proceeds; foreigners and Nigerians investing in companies in
Nigeria; hedge fund and Nigerians that have money abroad bring it in.
“Out of these five, only one is functioning today – which is
government source, the others have dried out. So the forex inflow has
gone down, reserve is low but demand is still high. There is no
confidence in the economy that will encourage these four sectors to
bring in money for obvious reasons, either they believe that the naira
has not yet found its bottom, ‘so if I bring in my forex, I am going to
loose straight away’. And as long as that continues, we are not going to
see inflow. And then you have the Niger Delta problem on top of that.”
He said the nation lost its opportunity when it made so much money
from crude sales but did not save, adding that the nation could have
withstood the crash of crude price.
Nigeria, he counseled, needed a very strong reserve base.
Saraki shed more light on the linkage between a strong reserve base
and the imperative of exploring viable options of getting out of the
recession thus: “If you decide to defend your currency, you have the
capacity to do it, which will likely stimulate the economy and people
will be saying lets go to Nigeria.
“Everybody is putting their hands off Nigeria and that is why we did
not get value when we devalued, as people still believe that naira is
still going to go further down, you have the capacity to say naira is
going to stay at N400, you have the capacity to do that. So I can
project as hedge fund manager that I am going to invest in Nigeria, the
interest rate is good.”
On the continuing slide of the Naira, Saraki maintained that the
resultant consequence of a lack of confidence in the Nigerian economy is
the continued slump of the Naira, expounding that the Central Bank of
Nigeria was caught between the devil and the deep sea in the area of
fighting inflation by keep interest rates or taking the plunge by
reducing the interest rates and contending with a run away inflation.
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
Read more at: http://www.vanguardngr.com/2016/09/recession-not-selling-off-key-national-assets-yet-fg/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
ABEOKUTA—FORMER
President, Chief Olusegun Obasanjo has thrown his weight behind call for
the sale of national assets to raise money by the Federal Government,
but, cautioned the government against selling them to cabals.
Obasanjo also said he foresaw the current economic recession two years
ago and warned of its consequences.
The former President said this, yesterday, at the opening session of a
two-day National Council of Finance and Economic Development conference
held at the Green Legacy Resort, Olusegun Obasanjo Presidential Library,
Abeokuta.
The conference was held in conjunction with Federal Ministry of Finance
with the conference theme: Enhancing Revenue Generation and Obtaining
best value for money in expenditure.
The former president, who identified port authorities and Nigeria
National Petroleum Corporation, as part of assets that Nigeria could
partly sell to generate fund, said: “I think the problem is in the
coinage selling of asset as if we want to throw away our inheritance.
His words: “Look, the Nigeria National Petroleum Corporation, NNPC, was
run as personal things, even the Central Bank was also run that way.
They write notes to the Central Bank to release so much. We cannot have a
country run that way. We started NNPC about the same time Norway
started and look at where we are.
I said it this morning, two institutions that were not tampered badly or
not tampered at all in the last six years, was NLNG, the second one was
pension fund which is going to about N6 trillion which has captured
only seven million people out of over 20 million wage earners, if we can
even double that, you imagine what that can be.”
Continuing, the former president said: “I see no reason why 48 percent
of NNPC cannot be privatised. Don’t give it out to cabals, friends,
relations, kiths and kins, let it go public so that even my driver can
buy 10 per cent of NNPC and there should be limit to the share any
individual or any cooperate organisation can buy, there is nothing wrong
in that. The NNPC will then be run as NLNG was run.”
While calling on the Federal government to be transparent in the sale of
the assets, he said “The only fear the people would entertain is the
magomago, if there is no ‘magomago’ in it and it is transparent, yes.
And when the money comes, the way it will be spent, yes, and when you
have money and you want to buy again, yes.
I don’t see anything there, government should not feel shy, lets come
out and say ‘this is what we are doing and this is why we are doing
it’ and let people see and if anybody wants to ask questions, let them
ask question, that is the way I see it and if any person is not happy
about what I said, I have no apologies.”
On the way out, he said the major problem with Nigeria is that “we are
spending more than we are earning and we have not been able to save for
the rainy day.”
He suggested a three-fold solution; which includes: borrowing, spending
less and earning more to solve the nation’s economic challenges.
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
Read more at: http://www.vanguardngr.com/2016/09/selling-national-assets-not-bad-obasanjo/
