The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has advised the Federal Government against the sales of the Nigerian Liquefied Natural Gas (NLNG) and other federation assets to meet the country’s financial obligations.
The commission’s Acting Chairman, Alhaji Shettima Abba-Gana, gave the advice on Tuesday while reacting to suggestion from prominent Nigeria like Alhaji Aliko Dangote, Senate President, Dr Bukola Saraki, the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, among others, that some country`s assets be sold off to augment the current revenue shortfall being experienced by the nation as a result of the economic recession.
According to Abba-Gana, in a press statement, it would be unwise for the Federal Government to dispose of its crown jewels which were generating revenues and keeping the Federation Account healthy over a long term.
He cited the NEITI 2013 Audit and Financial Report of Nigeria’s oil and gas industry, adding that 12.9 billion dollars was received by the NNPC from NLNG over an eight-year period.
He added that the NNPC, however, did not remit the amount to the Federation Account, saying that the audit showed that NLNG paid 1.2 billion dollars as dividends for 2013.
He said, “It is the considered view of the commission that Nigeria’s assets like NLNG and other strategic national resources should not be sold to meet short-term financial obligation.”
He said that the amount needed from the sale of the assets could be borrowed from the International Monetary Fund.
He added that revenue from the assets could be used to amortize the loans over an agreed period, adding that after the amortisation of the loans, the assets would still be owned by the federation in addition to their regular dividends and revenue.
He, therefore, advised that instead of selling off such vital assets, wealthy Nigerians should be encouraged to set up their own LNG projects.
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