Nigerian recession has a simple solution according to Africa’s richest man, Aliko Dangote.
He has advised President Muhammadu Buhari to embark on a wave of asset selling to boost the recession-hit economy.
“I think the real challenge for us is now for us to have the political will in terms of selling some assets,” Dangote told CNBC Africa today.
“I think it’s an easier route than the IMF (International Monetary Fund) or the World Bank to borrow money, because what you need to do is actually to beef up the reserves.”
Dangote spoke to CNBC Africa before Nigeria’s credit rating was downgraded to B from B+ by S&P Global Ratings on Friday.
“Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange regime and delayed fiscal stimulus,” S&P said in a report on the downgrade.
Nigeria’s economy is set to contract on an annual basis in 2016 for the first time in 21 years, with its all-important oil industry suffering under weak global prices. The country’s gross domestic product (GDP) dropped by 2.06 percent in the second quarter of 2016, after falling 0.36 percent in the previous three months.