Nigerian billionaire Aliko Dangote told CNBC that a wave of asset selling
\nby the government could be the best way to boost Nigeria’s recession-hit
\neconomy.
\n“I think the real challenge for us is now for us to have the political
\nwill in terms of selling some assets,” he told CNBC Africa on Friday.<\/p>\n
“I think it’s an easier route than the IMF (International Monetary Fund)
\nor the World Bank to borrow money, because what you need to do is actually
\nto beef up the reserves.”
\nDangote spoke to CNBC Africa before Nigeria’s credit rating was downgraded
\nto B from B+ by S&P Global Ratings on Friday.<\/p>\n
“Nigeria’s economy has weakened more than we expected owing to a marked
\ncontraction in oil production, a restrictive foreign exchange regime
\n(Exchange: NGN=) and delayed fiscal stimulus,” S&P said in a report on the
\ndowngrade.<\/p>\n
Nigeria’s economy is set to contract on an annual basis in 2016 for the
\nfirst time in 21 years, with its all-important oil industry suffering
\nunder weak global prices. The country’s gross domestic product (GDP)
\ndropped by 2.06 percent in the second quarter of 2016, after falling 0.36
\npercent in the previous three months.
\nDangote is worth $12.5 billion and is the richest man in Africa, according
\nto Forbes. He is the owner Dangote Group, which bills itself as the
\nbiggest manufacturing conglomerate in West Africa and has interests in
\ncommodities.
\nDangote told CNBC that Nigeria, which rivals with South Africa to be the
\ncontinent’s biggest economy, should have been diversified a long time ago.
\nHe lamented its overreliance on oil.
\nHowever, he was optimistic that Nigeria would exit recession in the fourth
\nquarter of this year and said the country “had all the answers” to bounce
\nback to health.
\nHe urged the government to sell assets in some of its joint ventures with
\nthe private sector in an open tender process. He said that Africa Finance
\nCorporation – a development finance institution established in 2007 –
\nwould fetch close to $800 million. He said policymakers should also look
\nto sell 100 percent of the country’s stake in Nigeria LNG Limited, a
\nnatural resources firm.
\n“If I had challenges in my company, I would not hesitate to sell assets,
\nto remain afloat, to get to the better times, because it doesn’t make any
\nsense for me to keep any assets and then suffocate the whole
\norganization,” Dangote told CNBC.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nigerian billionaire Aliko Dangote told CNBC that a wave of asset selling by the government could be the best way to boost Nigeria’s recession-hit economy. “I think the real challenge…<\/p>\n","protected":false},"author":1,"featured_media":50808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-53225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n