The Lagos Chamber of Commerce and Industry (LCCI) and the Pharmaceutical Society of Nigeria (PSN) thrown their weights behind the the Federal Government on its plan to sell some national assets to finance 2021 budget.
The two bodies said that there is nothing wrong if the federal government takes that step, because sale of idle assets would have some impact on the economy and privatisation.
They hinged on the caliber of assets that want to be sold, adding that it would make economic sense by selling them and convert the money to other assets.
According to the Director General of LCCI, Muda Yusuf, the proceeds that would come from the sale is N205 billion.
“The budget size is N7.99 trillion; deficit is N5.60 trillion. The contribution of privatisation proceeds to budget financing is 1.5 per cent. This is actually not material.”
He added that privatisation is not alien to Nigerian system and has been beneficial to the economy in form of revenue.
“Privatisation in itself is not a bad idea because it brings value to idle government assets.”
He also noted that the move would help in revalizing moribund public assets or enterprises.
“There are government enterprises and assets that constitute a burden to government and to citizens, such enterprises or assets deserve to be privatised.”
Speaking on the issue President of the PSN, Sam Ohuabunwa, said it depends on what asset the Federal Government wants to sell and the reason
He stressed that economic agents have two forms of assets, which are either liquid or solids assets.
“When you are short of liquid asset, you can convert your solid asset to liquid and when you have an excess liquid asset you can convert it to solid asset. That is the way it operates, so the issue is what asset are you going to sell and why.”