Privatisation key to Nigeria’s liquidity problem – Expert
An economist and Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, has advised the Federal Government to open its economy, contending that privatisation stimulates foreign direct in-flow.
Dr. Teriba made the statement when he presented a paper titled: MacroEconomic Role of Privatisation on the Nigerian Economy” at a one-day orientation programme for members of the Stakeholders Engagement Committee (SEC) of the National Council on Privatisation (NCP) held in Abuja recently.
Teriba said, “Privatisation is the tool which most countries use to check their liquidity issue and beef up the economy and that Nigeria can also do the same by privatising some of her key sectors.”
He said liquidity is the country’s main challenge, adding that a macroeconomic approach to privatisation was ideal.
“To solve Nigeria’s liquidity problem, she needs foreign exchange inflow. Nigeria’s annual export revenue has been halved. Nigeria’s problem is that other problems are symptoms of the (liquidity) problem. Recession is reflecting liquidity shortage”, he said.
He pointed out that privatisation was now the trend the world over and he cited Saudi Arabia and India which planned to privatise some of their critical sectors to raise funds to develop both countries.
Teriba said Saudi Arabia for instance, planned to raise about $200bn through the privatisation of 16 sectors, ranging from healthcare, aviation to education.
“Nigeria has a huge head room to go for equity and should think of getting her own money and others,” he stated.
He gave example of how private investors are earning handsomely in the Nigeria Liquidified Natural Gas (NLNG) and paying the country well.
The economist called for the privatisation of the Transmission Company of Nigeria (TCN) as privatisation was the answer to the country’s economic development, stressing that the budget and expenditure of the Federal Government were shrinking, and that “you don’t get saved by cyclical swings but buffers”. not relying on