Alhaji Aliko Dangote has an idea on how the federal government of Nigeria can get out of its recession; selling off the Nigerian Liquified Natural Gas company (NLNG).
Dangote does not want the Nigerian government to sell off the NLNG only, but other huge ventures in the capital-generating sector. By doing this, he believes the government can generate income in order to stay afloat the recession caused by a fall in oil prices.
He also added that diversifying is necessary to getting the west African country out of the dumps.
According to The Vanguard, he said:
“If I had challenges in my company, I would not hesitate to sell assets, to remain afloat, to get to the better times, because it doesn’t make any sense for me to keep any assets and then suffocate the whole organisation. What we need to do now in my own thinking… we have a lot of assets to sell. We can sell part of the joint venture; part of the shares.
You know government normally owns 60 percent. We can sell in an open tender be it Chinese. We can change the term and make it an operating one, just like what we have in NLNG. We also have another asset I think we don’t really need. The African finance corporation; it can fetch them $800million easily. My own suggestion before was that they should even sell 100 percent of NLNG. I don’t think government should be in any business of investing in sectors of LNG. A company like that, with earnings of $1.5 billion on the average, they should get anywhere between $12 billion and $15 billion.”
Upon selling these ventures, the proceeds should be reinvested in Nigeria, he adds that it would boost the government’s reserve.
Dangote also suggests that a partnership between the Nigerian government and the private sector will go a long way to helping Nigeria out of the recession. According to the business mogul, Nigeria being in a recession does not scare him because Nigeria’s growth is dependent on the government’s next course of action.
Dangote believes that if all these are done soon enough, by the fourth quarter, the west African nation will be doing good enough to get back to her feet soon.