The Chief Executive Officer of Economic Associates (EA), Ayo Teriba, has urged the Federal Government to securitise national assets in a bid to unlock liquidity.
He gave the suggestion at a one-day economic conference on the outcomes and risks of global and national economic events.
Teriba explained how securitizing assets will increase foreign direct investments (FDIs) and close domestic capital formation gaps.
Teriba spoke on, ‘Nigeria’s Economic Outlook: Evaluating New Opportunities and Threats’.
The CEO said, “Nigeria needs to apply urgency as national issues start with liquidity. The challenge in the world is that there has been a transition to liquidity.
“Only countries that understand this challenge and align with measures to boost liquidity will witness a stable economy.”
Teriba explained that the government failed to leverage the capital market to unlock value from its enterprises and assets.
Teriba said, “It is time for the country to know what it owns, place value through it, and securitize its assets. Nigeria must be asset-centric, learning from the United States, which has a robust model for managing government-owned real estate and other related assets.”
He noted how China, India, Brazil and Saudi Arabia among others keyed into the asset-centric model.
He said they turned to assets to unlock liquidity and attract FDIs.
Teriba described the Nigeria Liquefied Natural Gas Company (NLNG) venture as a proof of how public-private partnerships can attract investments.
According to the CEO, the Ministry of Finance Incorporated (MOFI’s) has a huge role in optimising Nigeria’s state-owned companies and assets.
He said, “All modes of transportation need to be developed simultaneously with investments in rail lines, linkage roads, aviation and waterways.
“Also, pipelines, fibre optics and transmission nodes support a connected economy. This will improve logistics and the services industry.”
He projected that FDI stocks could continue their growth trajectory and surge in performance to $87trn by 2029 from $49trn in 2023.