Recession-hit Nigerian Senate rejects privatization bid

By Rafiu Ajakaye

LAGOS, Nigeria

The Nigerian Senate on Tuesday passed a resolution preventing the government from selling off national assets, including a state-owned liquefied natural gas (LNG)-producing company, in bid to raise funds to revitalize the economy.

The Nigerian economy entered recession in August following a dip in GDP for two consecutive quarters.

Tuesday’s resolution followed a motion by Senate Leader Ali Ndume who insisted selling off the assets amounted to mortgaging the country’s future for short-term economic benefit.

“I move that ‎the Senate oppose the sale of national assets to shore up our reserves,” Ndume, a member of the ruling All Progressive Congress, stated in his motion.

Those in favor of the motion won the voice vote called by Senate President Bukola Saraki.

However, although the Senate resolution is significant, it is not binding on the country’s executive.

Last week, a national economic council chaired by Nigeria’s vice president recommended the sale of some yet-to-be-identified assets to boost the country's foreign reserves -- now at around $25 billion -- and jumpstart the economy.

The president of the Senate -- and Africa's richest man, billionaire Aliko Dangote -- also made similar suggestions but most Nigerians have scoffed at the idea which they fear could see critical national assets being sold to private individuals.