The Federal Government of Nigeria yesterday dumped Alhaji Aliko Dangote’s proposition to sell Nigeria’s Liquefied Natural Gas (LNG) and other royal gems to increase shortage in income, insisting that borrowing would be a much more preferred choice.
Acting Chairman of Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Shetima Umar Abba Gana, who faulted Dangote’s proposal, said that Nigeria’s gas reserves which totals 188 trillion cubic feet, is the best in the world because of its low hydrogen sulphide impurity levels.
Instead of selling Nigeria’s assets, which generate funds to the Federation Account, wealthy Nigerians should be encouraged to set up their own LNG projects, since Nigeria ranked seventh in the world and first in Africa with natural gas reserves base totaling 188 trillion cubic feet (Tcf) as at May 1, 2015.
In a statement, Gana argued that it would be unwise for the Federal Government to dispose of its revenue generating crown jewels that keep the Federation Account robust over the long term.
Dangote had earlier advised the Federal Government in an interview with CNBC Africa to sell off the federal assets as a way of augmenting the current revenue shortfall to wade over the current economic recession.