Recession: Dangote prefers sale of FG assets to IMF loan

Africa’s richest man, Aliko Dangote has suggested that the Federal Government sell assets to remain afloat and get back to better times, instead of going for IMF loan.

According to him, it does not make any sense to keep assets and then suffocate.

Dangote stated this while speaking with CNBC Africa on Friday, advising against an International Monetary Fund (IMF) loan and called for revenue mobilisation through other means.

He said, “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. I think the real challenge is now for us to have the political will in terms of selling some assets. I think it is an easier route than going to IMF or World Bank to borrow, because what we need to do is to beef up reserves.

“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.”

Read also: FG seeks rescue, set to raise $1bn in Eurobond

Dangote’s position was same with the Minister of Finance Kemi Adeosun, who had said earlier that Nigeria should not loan from IMF.

Adeosun had during the IMF spring meeting in April 2016, said that Nigeria as a resilient country with strong fundamentals, will get through tough times without an IMF loan.

“We have resolved to build resilience into the country’s economy to hedge against future oil shocks. This is because dependence on oil brings about vulnerability and laziness. So, we are doing a combination of things to diversify our economy, with revenue mobilisation to enable sufficient investment in developing the non-oil sectors,” Adeosun had said.

By Ebere Ndukwu …

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