Page 50 - UUBO PE Summit 2020 - Materials

1. Liquidity: Illiquidity vs. Insolvency

Fiscal liquidity problems reflecting downside risks to global growth (headwinds) could be easily mitigated by
upside prospects of attracting larger inward capital flows into idle public assets (tailwinds)

FISCAL STRESS

NET WORTH

ENHANCING NET WORTH

Low Revenue, High Debt
Service: Liquidity or IMF says, ‘It’s not just UNLOCKING LIQUIDITY

Solvency? what Governments owe, So, what does How can we unlock
Nigeria own?
it’s what they own’ value from them?
There are growing concerns There is a need for Nigeria
about Nigeria’s fiscal situation. to take an inventory of There are evidence of
Key sources of concern about Nigeria’s debt liabilities are assets owned by large stocks of under-
Nigeria’s finances are dwindling well-known, but not her assets government. Once we exploited assets owned by
revenue, soaring deficits, growing and only few governments know know what the assets are, the Government, thus,
Nigeria is solvent but
debts levels, and escalating debt how much they own. Therefore, we can value them, and illiquid. Therefore, we can

burden or debt service ratio. the knowledge of what rationalize/optimize those unlock liquidity through
government owns is helpful for with higher market values
tax generation purpose. than what we use them for exploitation of the
identified assets .

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