SELLING OF OIL ASSETs OR BORROWING OF MONEY-A WAY OUT OF RECESSION IN NIGERIA.

As we all know, nigeria is in recession and its getting worst by the day, which eventually gave rise to a search for an immediate solutions to the economic  hardship Nigerians are facing. 

It all begins at a point where the Nigeria's  business tycoon Alh. ALIKO DANGOTE  came up with an idea that nigeria should sell NLNG off In other to have money to inject into the economy as this recession is getting worst. He also advise nigeria that through the sell of an asset, the country  will at least curb the issue of  shortage of hard currency in the short-run, believing that injecting a whopping amount of $10b In the economy may lead to an appreciation of Naira  to $1-N240 or less.

Speaking from the upper legislative chamber, the senate president urges Nigerian government to adopt the advise given by dangote and sell off some non oil assets like NLNG that nigeria need an immediate solution to the issue of hunger (inflation) that is all over the nation.

Nevertheless, the revenue mobilization allocation and fiscal Commision RMAFC strongly disbelieve in any idea of selling an asset that it's not rational for any asset to be sold to meet up a short-term financial obligations, that the FG can still Borrow the same amount from IMF and the revenue from this assets can also be used to amortize the loan.

MY OWN VIEW

 I want to believe both the parties have something in common, that we need money to meet up a short-term financial obligation. But where they part is on how to get the money , at this point one needs To sideline one of the parties, in my own view I think I'll go with the dangote's idea of selling off an asset than borrowing From IMF, Below are my reasons.

1-IMF debt come along with some rules that'll favor them

2-borrowing from IMF is another form of modern colonialism  I.e the worst form of imperialism

3- IMF debt bailout  deepen rather than solve economic crises for example during the financial crisis of Mexico, Thailand, Indonesia, Russia and Brazil in 1997. The IMF came in as a lender of last resort, and yet the IMF bailout in the financial crisis did not stop the financial panic but rather the crisis deepens and spread out to more countries 

4- "If I had challenges in my company, I would not hesitate to sell assets, to remain afloat, to get to the better times, because it doesn’t make any sense for me to keep any assets and then suffocate the whole organization"(dangote 2016)

5- through the sell of an asset, the government will peacefully inject it's money in the economy without thinking of some ties that may have come along with when indebted. 

I believe there are so many reasons any one can give that may favor selling an asset to be a bad idea, but believe you me borrowing from IMF is economically more dangerous than selling an Asset.

-Muhammad Basakkwace