How FG Can Generate $500m – Economists

The President Muhammadu Buhari-led government has been given suggestions on how it can generate about $500 billion from liberalisation and privatisation of assets and sectors within five years.

The recommendations were given on Wednesday at the first 2018 monthly seminar of the Ibadan School of Government and Public Policy (ISGPP).

The Chief Executive Officer (CEO), Economic Associates, Dr Ayo Teriba, made the recommendations in his lead paper titled “Transiting from Bust to Boom: Fiscal, Financial and Infrastructure Options.”

Teriba advised that as opposed to borrowing to fund the budget and pay other debts, the Federal Government should liberalise certain sectors of the economy and privatise all infrastructure to generate about $500 billion in five years.

Teriba explained that considering the success of in telecommunication, liberalising, breaking government monopoly by licensing new entrants, can also work in aspects of rail and road transport, health, education and sports.

By relaxing stringent policies in some sectors, allowing joint ventures as done in the oil and gas sectors and partially or wholly privatising assets, government will generate the revenue needed to shore up foreign reserves, improve non-oil revenue, Teriba added.

He added that such funds which could be generated would assist enable government erect more infrastructures as well as broaden access to finance for the Nigerian business people.

The economist said partial privatisation and  joint ventures ought to be achievable in refineries, pipelines, power transmission and some aspects of rail, if utilised.