Nigeria just like any other nation of recent has been plunged in economic crisis coupled with her plummeting currency, which have had a devastating and ripple effect on the economy and the national revenue to fund the national budget.
Such happentance crave for a matter of priority as related to how the government should devise an alternative to financing the national budget rather than the borrowing that is becoming conventional as of late.
Alternatives abounds in the country which can be explored without necessarily plunging the country into more debt than she is presently servicing, this borrowing has reflected on the National expenditures with debt-servicing taking the larger share. This of course is not a the kind of legacy or the future we envisage for the next generation.
There is a need for a National introspection regarding the government propensity of borrowing so as to curb it deficit budget, our national debt profile is attaining accelerating crecsendo as of recent, a glance at the bar chat regarding the increasing level of our national debt will reveal that it stands in towering height.
Borrowing, as we all understand is done to finance the budget deficit to meet up capital and recurring expenditures. But rather than heightening our debt profile, , there is a need to diversify from this recent-sustained way of financing budget to a more feasible and viable alternatives.
Auctioning our idle asset is an opportunity that need to be leveraged upon, this is because debt sustainability undermines fiscal consolidation, Nigeria has asset wasting away all over the country, the government can leverage on these asset to boost its revenue to enable her fulfill financial obligations.
By properly sensitizing the government, auctioning such toxic and idle assets can serve as an alternative by which the nation could explore to generate some funds to cover this deficit and dwindle this borrowing that has hugely catapulted the national debt burden.
The government need money to finance budget and cut out waste, this can be easily achieved if the government is willing to involve auctioneers.
Nigeria is a country littered with many moribund, idle and toxic asset that if adequately assessed can be liquidated.
The EFCC over the years have confiscated properties in torrents worth billions of nairas. This Anti graft agency has plethora of confiscated asset that are not performing any function, all laying dormant with no use, the police stations across the nation is laced with abundance of asset of which can be liquidated, be it a scrap, there is still some value attached instead of laying fallow with no use, they can be auctioned. All these are things the government can get value from.
This strategy represent a win win idealistic mode of receding and waning our borrowing proclivity.
According to statistics by Asset Management Corporation of Nigeria (AMCON). they have asset of about N2trillion, The CBN said collaterized asset that are non-performing are over 860bn, the same way the EFCC reported to have assets worth billions of naira, a look at our airports also will give you a glance of many abandoned planes.
Over 1tn naira can be sourced from the plethora of idle asset in Nigeria. According to the U.S Consulting firm price waterhouse coopers, it is estimated that the idle asset that exists in real estate and agriculture are worth $900 billion, with such statistics revealed, we can confidently assert that auctioning these properties will generate worthwile capital for the government.
Navigating this route of auctioneering can be a breath of fresh air as an alternative and also a diversification from the recently conventional source of finance which of course can potentially have adverse ripple effect on the nation economy. this will also give the government the opportunity to assess all idle asset, and also an opportunity for the professionals in the real estate sector both private and public sector to be involved rigourously and also engaged more in fishing out all the morribund assets that can generate an enormous for the financing of deficit budget.
This idea or should I say alternative proposed may just end up like another mere presentation, but with the efforts and doggedness of this institution and also the spirit of Nationalism embedded in many of us to rescue our dear Nation from the impending economic downturn, we can save our nation, we can engage all the necessary stakeholders, the high and mighty in the government that can influence decisions, the National Assembly and not to forget all necessary political persuasion, as they often give many motion raised political undertone.
I implore us all to see this as a clarion call to salvage our economy. We should see this borrowing as a clog in the wheel of economic development, I believe some dignitaries in this profession are armed with the wherewithal to engage stake holders in the government.
Tentatively, it may not be a peccadillo for the Nigeria institution of estate surveyors and Valuers (NIESV) to fold arm and observe the government deficit budget, but it will be a moral blunder on the institution part to have such rich idea that can serve as template for the government without disclosing it.
The institution is enmeshed with personalities and captains of industries with all the requisite knowledge gauged by their experience to offer consultancy to the government on how to finance this budget through the aforementioned strategy.
Yakub writes from Abuja
