Lamido Sanusi calls of Fed Govt to sell refineries, oil assets

The Emir of Kano, Mohammed Sanusi II, on Wednesday joined several prominent Nigerians and industrialists calling on the Federal Government to sell out some national assets to enable the country wriggle out of recession.

Speaking in Lagos, at the launch of the 2016 Banking Sector Report published by the Afrinvest West Africa Limited, Sanusi said one of the options available to government is to sell down some oil assets and the refineries to private sector operators that will pump dollar into the economy, so as to strengthen the Naira.

He said: “One option is to sell down some assets, sell down some refineries in a manner that does not hurt your strategic interest. Sell down some oil assets, sell down some refineries, in a transparent manner that gives you value. You can also have options to buy them back later”.

According to him, such steps would lead to increase in foreign exchange inflows into the economy, which is what the economy needs right now.

He also urged government to create level playing field for both the Nigerian and foreign investors.

“And do what I said which what are the kind of policies that will attract foreign investors. We have to get to a point when we welcome investors of all nationalities, who are willing to set up production plants here to turn our own raw materials into finished goods. Rwanda, Ethiopia have all done that very well. There is nothing we are saying that haven’t been done by other African countries. We need to go into investment-driven model. China has grown into investment-driven model. Nigeria needs to move into in to investment-driven model,” he said.

Speaking further, he said: “Any model that tries to chase away foreigners will not create jobs for the youth. We need to be an economy that creates opportunity for the youths. It also includes the independence of the Central Bank of Nigeria (CBN). I love the finance minister, but when the CBN said we are not reducing interest rate, I said, yes”. This, he explained was that the CBN should continue to protect its independence.

Sanusi said Nigeria’s growth have over the years, been driven by rising commodity prices, and the rising domestic debt that went into consumption.

“So, real wages basically kept increasing. In 2011, with oil prices at $110 per barrel, we were spending 80 per cent of government revenues on personnel cost. It was not sustainable, it was a problem I identified but no body listened. That model has reached the limit of its capacity. How much can you tax people to make up? There is a limit to what you can borrow. Now, we are spending 35 to 40 per cent of your revenues on debt services,” he said.