Wednesday, July 15, 2020

Kogi to sell some non-performing assets to raise capital for infrastructural development

The Kogi government says it is considering selling some non-performing assets of the state to raise capital for infrastructural development.

In a statement today, the Commissioner for Information and Communication, Kingsley Fanwo said the government is also considering “divesting from business ventures.”

He said the government will cede some businesses such as hotels and transportation to the private sector to focus on creating enabling environment for businesses to flourish.

The government, Fanwo added, is “evolving a policy to systematically ease herself out of business ventures that are not critical needs of the people and which could be better managed by the private sector.”


“The present administration is working on a plan to concentrate on infrastructural development and create a conducive environment for businesses to thrive,” he said.

“Over the years, certain businesses such as Hotel Management and Transportation have been mismanaged by Government. This administration will not follow that path.

“The Economic Team of Government has been charged to come up with plan that will gradually cede the major economic play to the private sector while Government concentrates on regulating the economy and also create a conducive environment for economic prosperity.

“Businesses like Hotel Management and Transportation and others in that belt, are better managed by the private sector. Government has no more resources to waste on businesses rendering services that are better rendered by private concerns.”

Fanwo added that the current realities require the state to “reorder our priorities and look into how we can complete our ongoing projects as well as initiate new impact ones.”

“We are looking at the assets of the State. There are some assets that Government kept spending huge sums to maintain and they are not bringing any income to the State,” he said.

“Economically, the world is going through a new normal and smart states like ours will have to cut costs and recharge our revenue generating batteries to ensure our people are served and served well.”

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