The Kogi government says it is
considering selling some non-performing assets of the state to raise capital
for infrastructural development.
In a statement on Wednesday,
Kingsley Fanwo, commissioner for information and communication, 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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