Aliko Dangote, president of Dangote group, has advised the federal government to take back the assets it sold earlier and give it to people who “really have money” to manage them.
According to reports, Dangote said this in Plateau state during the senior executive session of course 38 at the National Institute of Policy and Strategic Studies (NIPSS), Kuru.
The billionaire businessman reportedly said majority of the people who bought these power assets do not have an understanding of it.
He advised the government to negotiate with them and find solutions to the problems confronting the sector.
“We should be as open as we can if government doesn’t intervene by taking back these assets and giving them to people who really have money that they can really inject, we will not be able to deliver on power,” he said.
“We should ask, how many people, who and who are these guys that have actually gone into the power sector then you will know when you see the quality of people, are they really serious, because they went in to just make money, power business is not just about money, it is a huge business when you invest heavily you will reap at the end of the day.
“What government did was to privatise but the privatisation was done wrongly. People who wanted to buy all these plants, both the generating and distribution companies, thought that this was another opportunity like mobile phones, where we have moved from 500,000 lines in 2000 and in ten years we now have 120million lines.
“Yes it would have been so but these guys, what they did when they bought these power plants was that they borrowed 90% of the money in foreign currency. You cannot go and borrow dollars when your base income is in naira, you will have an issue because your earnings are in naira you are taking a huge exchange risk and that is what happened today.
“These are guys, with respect to them, when I say guys I don’t mean 100% of them but the majority of them went in without even understanding what they are doing and the worst thing for any entrepreneur is to go into a business without understanding it.
“If you don’t understand a business no matter how much money they show you that you are going to make, how much profit, don’t go into where somebody has to come and sit you down and start explaining because if he is doing something wrong, you don’t have any way of challenging him.
“If you wake me up in the middle of the night on any of the businesses we are doing today, even the new ones I will be able to explain it to you, I know my entry and I know my exit but unfortunately that is what these guys did and today they are holding the entire nation to ransom, it is very embarrassing for us.
“Today, how can we say that we don’t have 300,000 prepaid meters? things have changed you cannot go and charge a rate and then you have to follow people one by one to be scheming for them to pay but with a prepaid meter, once you buy for N10,000 after the N10,000 you have to remain in darkness so it is not an issue to start chasing people to pay. And it is also estimated that 30% of the overhead costs of businesses in the country go into the provision of alternative source of power. This affects their revenue and profitability.
“My own advice is that government should sit down with them and negotiate the best way out because we need power, we are desperate for power and if there is no power no growth because if you look at the medium and small industries, most of their income goes into buying diesel or petrol to generate power and that shouldn’t be the case. I believe with enough power we will have tremendous growth.”

Truth.

Common sense

I have never supported any of buhari's useless policies, but if he does this he will have my support

Just say the name, Dangote. This is crony capitalism on steroids. The biggest impediment to development in Nigeria is that so-called government officials (who should have a fiduciary duty to the Nigerian people) are nothing but a bunch of self-serving vultures out to use their positions to enrich themselves and their cronies.
My biggest frustration with the so-called Buhari war on corruption is that he is driving with his rearview mirror. In as much as holding past office holders accountable is important, that pales in significance to the existential need to enthrone ethical rules to guide present and future conduct of so-called government officials.

This guy out of his mind. Privatusing power is best long term solution. The government failed at this just like they did oil and Telcom business. This guy is a crony capitalists to his core.

If they don't know what they're doing they can get advice or figure it out. If they cant someone competent will simply take over.

Blue3k:
This guy out of his mind. Privatusing power is best long term solution. The government failed at this just like they did oil and Telcom business. This guy is a crony capitalists to his core.

Of what use and benefit is privatization if at the end if the day, the cronies you sold your power assets don't know their heads from their tails. They have zero knowledge about power generation and distribution and don't even have capital or any kind of resources to invest and grow their operations.

Even banks won't give them money to invest because they are over leveraged with too much debt and little prospects for profits..

Dangote is right on the money..

aresa:



Of what use and benefit is privatization if at the end if the day, the cronies you sold your power assets don't know their heads from their tails. They have zero knowledge about power generation and distribution and don't even have capital or any kind of resources to invest and grow their operations.

Even banks won't give them money to invest because they are over leveraged with too much debt and little prospects for profits..

Dangote is right on the money..

The government sold it's assets. They will either figure it out or it will end up in more capable hands. Thousands of companies can give consulting services like G.E, Siemens, and more if they look.

Banks are big issue only but hey isn't it always. Long term it's best and you have to admit government has proven itself a failure at businesses. Time and time again.

Op,show us source.
But from the write up, Dangote did not condemn privatization but instead,those animals who doesn't understand the business and the need to do it.

Greedy man, so he want to buy it for himself?
He is really going crazy.

Blue3k:
This guy out of his mind. Privatusing power is best long term solution. The government failed at this just like they did oil and Telcom business. This guy is a crony capitalists to his core.

If they don't know what they're doing they can get advice or figure it out. If they cant someone competent will simply take over.

He is probably paying too much power bill and looking for a way to avoid it
He knows he wont be paying a cent if the government is still handling the power sector

Nigerian government since 1960 eating cake and having it back.....Rubbish

Lol....

Azujabeel:
Greedy man, so he want to buy it for himself?
He is really going crazy.

I stand with Dangote on this. If you run a business that requires power supply 24/7, and you factor in how much goes to buy fuel; you will understand what Dangote is saying. He is not challenging privatisation, he is challenging the competence of the investors. One investor that has the core competence is GeoMetric Power Limited led by Prof. Barth Nnaji.

Azujabeel:
Greedy man, so he want to buy it for himself?
He is really going crazy.

Since tomatoe and sugar no bring money well na, wetin uncle go do na?

emiwanlee:
I have never supported any of buhari's useless policies, but if he does this he will have my support

Jonathan sold power assets to mere traders and bankers who cannot commit money to a five year break even business. Cash and carry lazy receivers of government patronage. Utilities business is for serious people.