The ding-dong over the proposed sale of some of the national assets came to a head last Tuesday when the presidency advertised for sale two of the 10 aircraft in the Presidential Fleet. The two aircraft – a Falcon 7X and Hawker Sidley 4000 – government stated in an advertisement, could be inspected at the Presidential Air Fleet’s Hangar located at the Nnamdi Azikiwe International Airport, Abuja, and at Cessna Zurich Citation Service Centre, Zurich, Switzerland.
The Federal Government had spent a whooping N7 billion to maintain the 10-aircraft in the PAF fleet 16 months. Minister of Budget and National Planning, Udo Udoma, at a cabinet retreat, had dropped the hint of government’s plan to dispose of some national assets to bridge the funding gap in the budget and up the country’s dwindling foreign reserves.
Items proposed for sale includes some aircraft in the presidential fleet; four refineries in Warri, Port Harcourt and Kaduna and part of the 49 per cent government’s shareholding in the Nigeria Liquefied Natural Gas Company. Government also considered advance payment for licence rounds, infrastructure concessioning and the use of recovered loot to fund the budget as the price of crude oil, used as benchmark for the budget, plummeted in the international market. Apparently, the federal government flew a kite through the Minister. Government was testing the waters on how Nigerians would react to the plan to sell these assets.
The fact is that the country is broke. And the government needs capital fast to fund the budget. Nigerians are complaining. The economy is down. Prices of commodities have gone off the roof. Businesses are collapsing and compatriots are dying ei-ther through suicide or hunger. A responsive and responsible government needs to do something fast.
This is not a time to live a life of luxury while the masses who voted leaders into power are suffering. The Senate overwhelmingly rejected government’s proposal, arguing that selling the assets would hurt the system in the future. The lawmakers suggested, among others, the review of the operations of the Treasury Single Account (TSA) as the implementation had contributed to starving the system of funds.
They also asked the executive to urgently submit an Economic Stimulus Bill containing fiscal stimulus packages, investments and incentives designed to pull the country out of recession.The Labour unions – NLC, TUC, PENGASSAN –other groups and Nigerians also kicked against the sale of the national assets.
While we align with the argument that government does not have to sell the people’s commonwealth because of the present situation, the ones draining the nation’s pocket have to go! How can one explain, in these austere times, spending N7 billion maintaining only the president’s fleet of aircraft? Of what use is that to a hungry Nigerian? Or how do you explain spending N264 billion as turnaround maintenance for refineries that are not producing optimally? Nigeria still imports fuel for local consumption!
These billions of naira wasted on frivolities would have taken care of infrastructures and healthcare that will benefit the Nigerian masses. We commend the federal government’s decision to sell some aircraft in the presidential fleet, and also ask that government should go ahead to sell off assets that constitute drain pipes to the nation’s purse.
Government must also monitor and make sure that the proceeds of the sales are used in refloating the economy. However, we say no to the proposed selling of 49 per cent of government’s shares in NLNG as this is a cash cow for the government.
Government should exercise restraint on this with the hope that this tough time will not last. Already, the price of oil has started picking up. We are sure government must have learnt some hard lessons from this recession. One is the lesson of diversification.
Government needs to diversify from a mono economic product – oil – and increase allocation in budgets for agriculture and solid minerals. Nigeria is a consuming nation. Government should create enabling environment to attract investors. This will reduce unemployment and help in arresting the dwindling foreign exchange.
Most importantly, we suggest that governments at all levels should consider cutting down the cost of governance. If the executive and legislature are sincere and serious on ways of getting out of recession fast, they should consider a cut in salaries and emoluments. Curiously, nobody suggested this during the debate in the Senate. Security votes should be reviewed downwards. Recession time is not a time to live in luxury.
