Unions, OPS differ on sale of national assets

by Bimbola Oyesola

As organised labour resolved recently to resist sale of the nation’s assets to fund the 2021 Budget, members of the organised private sector have take a contrary stand, stating that selling the assets would save the economy.
Moerover, the Nigeria Labour Congress (NLC) has warned the Federal Government that Nigerian workers would oppose the bid to sell the nation’s assets to fund the 2021 budget.
The NLC president, Ayuba Wabba, said, if there are challenges to the budget, government should look for other means of income, rather than sell the national heritage.
“First, our national assets are our national heritage meant for generations even yet unborn. So, if you sell it to fund 2021 budget, what becomes of other budgets of subsequent years? So, I think it’s not thinking in the right direction,” he said.
According to the NLC president, such an approach has been contemplated in the past, but dropped due to outrage from Nigerians.
He noted that it was equally unconstitutional, as Nigeria’s constitution also made it very clear that the nation’s wealth should not be put in the hands of the few, stating that, if selling means privatisation, it then means the government is working against the constitution.
Besides, the labour leader said the timing was wrong, “Not in the best interest of the country at this period of global pandemic, which means it will be sold at giveaway prices. We will fault it. Abuja houses were sold, at the end of the day, the money was not found anywhere. We will not support it as NLC.
“The ones that we did earlier didn’t pay, Transcorp was sold for a pittance, but generating lots of money now, same for the PHCN.
“If previous governments had sold to fund budget we would not be talking of selling anything today.”
Wabba also warned that it would impact negatively on the credibility of the nation, when the need arises to borrow money from the international community.
He said, “We will no longer be credit worthy. You are credit worthy when you have assets.
“Nigeria is not a poor country, we should be able to cut our coats according to our sizes at this period. Ultimately it’s not a good decision that many Nigerians will actually buy.”
On the other hand, the OPS has reiterated that selling off or concessioning country’s assets is inevitable at this critical period of the economy.
It, however, opined that the processes should be transparent and competitive in a bid to enhance public confidence.
The Nigeria Employers Consultative Association (NECA) maintained that the assets would serve to mitigate the current challenges and ensure maximum and productive use of the assets.
According to the director-general of NECA, Timothy Olawale, it has been worrisome that the country has consistently struggled to achieve its revenue targets in funding budget provisions.
He noted that in past, the OPS have offered various options in addressing fiscal difficulties, among which is cutting down on recurrent expenditures, reduction in the high level of public debts, which is crowding out private debt, restructuring of the joint venture oil assets with international companies in order to boost finances as well as sell-off or concession its assets that are lying fallow and moribund.
“Proceeds from it should be channelled into financing annual budget deficits,” he said.
He stated that inasmuch as members of the OPS are in support of these initiatives in addressing the challenging of revenue drive, the processes should be transparent and competitively.
He said, “With the unpredictable nature of global oil prices and development in usage of alternative sources of fuel and modern technology, it is more appropriate to hasten the process of diversification of the non-oil economy in expanding the revenue sources away from oil.
“It is obvious that revenue from non-oil is more feasible than the oil revenue. We applauds the initiative of the fiscal authority around the 2021 Budget, which appropriates 30% of its revenue to oil sector and 70% to non-oil revenue.”
The NECA director-general stated that this would result in a buoyant and robust economy which will reduce the need for external debt to the barest minimum.