Africa’s richest man and CEO Dangote Group, Aliko Dangote advises FG on ways to quickly exit the country from the present economic recession.
The Businessman who spoke in an interview recently with CNBC Africa suggested ways the governmet could boost the nations foreign reserves.
Dangote in his interview advised the Federal Government to consider selling off the Nigerian Liquified Natural Gas (NLNG) company.
He also urged the government to sell off other dormant but huge capital-generating sectors, and invest the proceeds in the economy.
Dangote Advises FG To Sell Of Dormant Assets
According to him, these measures would boost the nations foreign exchange reserve and help bring the country out of recession before december.
“The only way for us to get out of this recession is to make sure we move into action quickly; action by diversifying the economy quickly.
“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 $800 million 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.”
Dangote further affirmed that if the nnation were to realize $15 billion, in addition to the $25 billion already in the nation’s foreign reserves, there will be confidence.
According to him, confidence will come back if the Federeal Government makes up $40 billion in reserves from sale of assets.
He assured that if the government then backs it up with proper economic policy where people can see the roadmap, the country will exit recession in no time.
Dangote Advises FG To Sell Of NLNG
Dangote confidently asserted that he is not scared that the country is in a recession.
He strongly believes that if his advice is taken, Nigeria will be out of recession by the fourth quarter.
The billionaire businessman also believes that Nigerians have all the answers to the economic challemges facing the country.
He further advocated a partnership between the government and the private sector, urging decisive action to be taken.
Dangote further attributed the current situation to “mere speculation.”
According to him, if Nigeria sells assets and raises $15 billion, the dollar will easily fall back to N250 exchange rate.
Dangote also advised African leaders to give incentives to investors and make intra-African travel easy.
In January 2009, Dangote made a remarkable statement about investing in Nigeria.
“Let me tell you this and I want to really emphasize it…nothing is going to help Nigeria like Nigerians bringing back their money.
“If you give me $5 billion today, I will invest everything here in Nigeria. Let us put our heads together and work.”