Privatise NNPC or go for a “whale” of $20-30bn from IMF, Moghalu tells FG

Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria has said privatisation of the Nigerian National Petroleum Corporation or  a $20-30 billion bailout fund from the International Monetary Fund are two options Nigeria can choose from to revamp its economy.

He noted that by privatising the NNPC, the government would be able to raise $20 – 30 billion from an initial public offering (IPO) which the economy is in dire need of.

“Privatize @nnpclimited and raise at $20-$30 billion from an IPO. Or go for a “whale” of a $20-30 billion bailout from @IMFNews (nothing less), with forensic oversight of the money and how it is spent,” he said.

Moghalu added that the federal government needs the new money to reposition the economy, saying “all these “trickle down” borrowing of $1 billion, $2 billion won’t hack it”.

Reacting to the steady fall of the naira to about N1,400/$ after it had hit a seven-month high of N1,000/$ barely two weeks ago, Moghalu, in a series of tweets on X on Monday, stated that “the focus should be on the stability of the exchange rate, not a populist exchange rate”.

“Reports that there are now multiple exchange rates to BDCs, Customs, and NAFEX are also worrying,” he added.

Beyond naira stabilisation, the former CBN governor also noted that in creating a viable and productive economy the government must prioritise constant power supply.

He said Nigeria must move to 20-25 thousand megawatts of 24 hour electricity in the next few years starting with Lagos, Kano, Onitsha and Nnewi for improved productivity.

Moghalu added that efforts must be made by the government to improve oil production and reduce oil theft in order to increase foreign remittances.

Nigeria sees roughly 80 percent of its dollar liquidity from oil remittances even as it produced about 1.23 million bpd in March as a result of increased oil theft.

This has led to Libya overtaking Nigeria as the largest oil-producing nation in March, data from Oraginsation of Petroleum Exporting Countries (OPEC) showed.

“We need to get serious. Managing an economy is not politics or a clap-and dance performance theatre. It’s serious business,” Moghalu said.