FG urged to focus on divestment, reduce borrowing for capital projects

The federal government has been urged to focus on divestment for equity and reduce borrowing to execute capital projects.

A group of over 300 technocrats from different sectors under the aegis of Think Tank of Nigeria (TTON) gave this advice as part of their resolutions to solve the economic challenges facing the country.

Speaking on behalf of the group during the launch of an 85-page compendium of communiques, the convener, Engr. Dideolu Falobi, decried the country’s high debt profile, saying it is taking a toll on other sectors of the economy.

“The government should consider asset sales- divestment; equity or outright sales to raise capital for government projects. These projects should be self-sustaining; that is, they should be revenue-generating projects and unemployment opportunity-creation ventures.

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FG urged to focus on divestment, reduce borrowing for capital projects

“Projects that are self-sustaining should not be undertaken through loans; you want to build a rail infrastructure, you don’t have to go for loans, there are people who have expertise in investing in rails as equity,” he said.

Commenting on the devaluation of the naira, Falobi stressed that industrialisation would help increase the country’s foreign reserve, advising the government to put an eye on the informal sector in a bid to increase the country’s Gross Domestic Product (GDP).