Tuesday, 27 September 2016

Nigerian government outlines conditions for sale of its national assets against the popular will of the masses

Buhari and national assets

As a result of the call to sell some of Nigeria’s national assets by business mogul Alhaji Aliko Dangote, President Buhari’s government has decided to dispose the federal government’s share in most of the asset which are yet to be revealed.

Though well-meaning Nigerians from different part of the country is strongly advising Buhari against making such decision as, it may practically not be in the interest of the common man, President Buhari’s body language so far seem to be adamant to such advices from other professionals and seasoned economist.

Some have even said, if what they claimed with respect to all the recovered loots, and savings from the TSA is true which runs into several trillions, then there is absolutely no need to take such a risk that may further impoverish the masses in favour of the elites.

So far, report reaching us has it that the Federal Government has listed some conditions, that may lead to the disposal of such national assets. One of such condition is the insertion of a clause which may empower the government to re-buy the sold assets when the economy improves.

But the questions Nigerians are asking, is does anything ever reverses to favour the masses? Because over so many decades, government usually bring untold hardship true policies that do not favour the general masses, which never reverses back to the status quo even when things get better globally. Thus Nigerians have found it extremely difficult to trust the government, more so, the current government which many say came into power with numerous mouth-watering promises that they have failed to deliver, with one excuse after the other, with the blame game being the hallmark of this current regime.

According to a presidential source: “The Federal Government has no plan to sell off its shares outright in the LNG, where it owns 49% shares. The balance of 51% is owned by private foreign interests.

“The Federal Government doesn’t own the entire gas company and will certainly not sell off its entire shares, but it’s open to the possibility of selling down its 49% ownership by 5% or thereabout.”

With regard to repurchase clause, he said: “Just as in other potential asset sales, there would be a repurchase option that guarantees the Federal Government’s opportunity to buy back any such assets if circumstances change anytime in the future.

“Some of the intended sales could be in form of time-bound leases, advance renewal payments on leasing licences and concessioning which would attract buoyant signature fees.

“If we even want to sell down certain assets, while our target is to get foreign currency, specifically dollars, the option would also be opened to Nigerians at some point to buy limited shares through the Nigeria Stock Exchange.”

The presidential source further said that one of the concession deal almost finished is the East-West lines of the Nigeria Railways, with the General Electric-GE-being the concessionaire.

The source said the global giant would invest $2 billion in the economy, including for the refurbishment of the single-gauge lane of the lines that have been largely left idle for years.

“GE under the deal, is expected to hire back some of the laid off staff of Nigeria Railways and also open a Transport University in Nigeria while building/assembling train coaches in the country.

“Federal Government would also receive a signature fee in foreign currency as it would in other assets that might be concessioned.

“The important thing to keep in mind is that the sales down of some of the assets is an option to raise the much-needed dollars at a critical time for the Nigerian economy”.


“Nigerians can be sure that there would be no shady deal, considering the character of the Nigerian leadership at this time”, the source said.

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