Connect with us

Hi, what are you looking for?

News Africa

Dangote says Nigeria doesn’t need IMF and World Bank to exit recession

Africa’s richest man, Aliko Dangote says Nigeria does not need to turn to the International Monetary Fund (IMF) as it plans ways to get out of recession.

The business mogul was speaking in an exclusive interview with CNBC Africa channel. He spoke on a wide range of issues including the recession, the naira – Nigeria’s currency, – west Africa’s economic outlook among others.

According to him, a key challenge to exiting the recession is ‘‘political will.’‘ The government must have the ‘‘political will in terms of selling some assets, I think it is an easier route than going to the IMF or the World Bank to borrow money, because what we need to do is actually to beef up the reserves,’‘ he said.

The political will in terms of selling some assets, I think it is an easier route than going to the IMF or the World Bank to borrow money, because what we need to do is actually to beef up the reserves.

One of the companies he wants the government to sell outright is the Nigeria LNG (Liquefied Natural Gas) Limited.

“The African finance corporation; it can fetch them $800 million easily. My own suggestion before was that they should even sell 100 percent of NLNG. I don’t think government should be in any business of investing in sectors of LNG.

“A company like that, with earnings of $1.5 billion on the average, they should get anywhere between $12 billion and $15 billion,” Dangote stated adding that with the proceeds from the assets sale, Nigeria can shore up her reserves. If that is done the Chief Executive Officer of the Dangote group believed Nigeria will exit recession by December.

He said the recession had hit Nigeria because ‘‘… 90% of the government’s foreign exchange earning is from oil, the only way for us to get out of this recession is for us to try and make sure that we move quickly into action. Action by saying that we diversify the economy quickly,’‘ he told Wole Famurewa.

Nigeria, Africa’s second largest economy, officially entered a state of economic recession for the first time in over 20 years. The announcement came weeks ago after figures revealed that the economy contracted for a second consecutive quarter.

According to the Nigeria Bureau of Statistics, the country’s Gross Domestic Product (GDP) contracted by 2.06% in the second quarter. The GDP shrunk by 0.36%.

A recession is a period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

The cause of the slump is believed largely to be as a result of the slump of oil prices on the world market. That situation has been worsened by renewed insurgency in the Niger Delta region, the attacks on oil installations continue to disrupt production of oil in the region.

Avatar photo
Written By

“Montage Africa” is built to be a truly inspirational lifestyle magazine.


On Monday, March 6th 2023, BUILD Nigeria, a registered youth-led nonprofit providing low-income Nigerian students with opportunities to study at world-class universities, announced that all...


The monumental failure of Silicon Valley Bank and Signature Bank earlier this month have raised concerns of system-wide contagion that could spread to other...


Gabonese President Ali Bongo Ondimba hosted his French counterpart Emmanuel Macron in Libreville with several Central African heads of state at a summit on...

Tech News

By Upuli De Abrew What is needed is for the data strategy to align with business strategy, and for it to be able to...


In this interview with ABBANOBI – EKU ONYEKA in his office in Abuja, the President, of Kubwa Hotel Owners Association, Kubwa, Abuja the Federal...


By Anne Githuku-Shongwe and Eva Kiwango Anne Githuku-Shongwe is the UNAIDS Regional Support Team for Eastern and Southern Africa Director and Eva Kiwango is the Country Director...


Every year, Jeune Afrique and The Africa Report establish a ranking of the Top 500 companies on the continent. This year, the ranking illustrates...


 Global central banks must juggle the need to control inflation through higher interest rates and to calm markets unnerved by banking sector turmoil that...


When co-founders Larry Page and Sergey Brin announced that they were leaving their day-to-day roles at Google parent Alphabet in 2019, handing Sundar Pichai the keys to...


By Nick Said The recent World Cup in Qatar has been a massive boost for African football and provided a newfound respect for the...


US Secretary of State Antony Blinken has said anti-LGBT draft legislation passed by Uganda’s parliament on Tuesday undermines fundamental human rights and urged the...


SAP SE (NYSE: SAP) today announced GROW with SAP, a new offering to help midsize customers adopt cloud ERP that enables speed, predictability and continuous...