Dangote advocates asset selling as solution to economic recession

The President of Dangote Group, Alhaji Aliko Dangote has said that a wave of asset selling by the government could be the best way to tackle the problem of economic recession ravaging the economy.

Speaking at CNBC programme on Friday, Dangote said:  “I think the real challenge for us is now for us to have the political will in terms of selling some assets”.

“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,” Dangote said.

“I think it’s an easier route than the IMF (International Monetary Fund) or the World Bank to borrow money, because what you need to do is actually to beef up the reserves.”

He urged the government to sell assets in some of its joint ventures with the private sector in an open tender process. He said that Africa Finance Corporation – a development finance institution established in 2007 – would fetch close to $800 million.

He said policy makers should also look to sell 100 per cent of the country’s stake in Nigeria LNG Limited, a natural resources firm.

According to him Nigeria, which rivals South Africa to be the continent’s biggest economy, should have been diversified a long time ago. He lamented the nation’s over reliance on oil.

He is, however, optimistic that Nigeria would exit recession in the fourth quarter of this year and said the country “had all the answers” to bounce back to health.

Dangote is worth $12.5 billion and is the richest man in Africa, according to Forbes. He is the owner Dangote Group, which is believed to be the biggest manufacturing conglomerate in West Africa with interests in commodities.