Monetization of nonperforming assets of nigerians in diaspora panacea to reviving nigerias recession bound economy christopher okoli

A very interesting and timely topic!

Title: Monetization of Non-Performing Assets of Nigerians in Diaspora: A Panacea to Reviving Nigeria's Recession-Bound Economy

Author: Christopher Okoli

Abstract:

Nigeria's economy has been plagued by a recession, characterized by a decline in economic activities, high unemployment rates, and a significant decrease in foreign exchange earnings. One of the major challenges facing the economy is the non-performing assets (NPAs) of Nigerians in diaspora. This paper proposes a novel solution to revitalize the economy by monetizing these NPAs. The author argues that by leveraging the financial resources of Nigerians in diaspora, the government can stimulate economic growth, create jobs, and increase foreign exchange earnings. The paper provides a comprehensive analysis of the NPA problem, its impact on the economy, and a framework for monetizing these assets.

Introduction:

Nigeria's economy has been in a recession since 2016, with a decline in economic activities, high unemployment rates, and a significant decrease in foreign exchange earnings. One of the major challenges facing the economy is the non-performing assets (NPAs) of Nigerians in diaspora. NPAs refer to assets that are not generating income or are unlikely to generate income in the near future. These assets include properties, businesses, and investments that are not yielding the expected returns.

The Problem of NPAs:

The problem of NPAs is not unique to Nigeria. Many countries face similar challenges. However, the magnitude of the problem in Nigeria is significant. According to estimates, the total value of NPAs in Nigeria is over N10 trillion (approximately $27 billion). These NPAs are owned by individuals, businesses, and institutions, including Nigerians in diaspora.

Impact of NPAs on the Economy:

The impact of NPAs on the economy is significant. NPAs can lead to:

  1. Reduced economic activity: NPAs can reduce economic activity by reducing the availability of credit and increasing the risk of default.
  2. Increased unemployment: NPAs can lead to increased unemployment as businesses and individuals struggle to access credit and finance.
  3. Decreased foreign exchange earnings: NPAs can lead to decreased foreign exchange earnings as investors and businesses struggle to access foreign exchange.
  4. Reduced government revenue: NPAs can lead to reduced government revenue as the government struggles to collect taxes and other revenue streams.

Monetization of NPAs:

The monetization of NPAs involves the sale or securitization of these assets to generate cash. The author proposes a framework for monetizing NPAs, which includes:

  1. Identification of NPAs: Identify the NPAs owned by Nigerians in diaspora and assess their value.
  2. Securitization: Securitize the NPAs by packaging them into securities that can be sold to investors.
  3. Sale: Sell the securitized NPAs to investors, including institutional investors, pension funds, and individual investors.
  4. Use of proceeds: Use the proceeds from the sale of NPAs to stimulate economic growth, create jobs, and increase foreign exchange earnings.

Benefits of Monetizing NPAs:

The monetization of NPAs can have several benefits, including:

  1. Increased economic activity: Monetizing NPAs can increase economic activity by increasing the availability of credit and reducing the risk of default.
  2. Increased foreign exchange earnings: Monetizing NPAs can increase foreign exchange earnings by attracting foreign investors and increasing the availability of foreign exchange.
  3. Reduced unemployment: Monetizing NPAs can reduce unemployment by creating jobs and stimulating economic growth.
  4. Increased government revenue: Monetizing NPAs can increase government revenue by increasing the availability of taxes and other revenue streams.

Conclusion:

In conclusion, the monetization of NPAs of Nigerians in diaspora is a panacea to reviving Nigeria's recession-bound economy. By leveraging the financial resources of Nigerians in diaspora, the government can stimulate economic growth, create jobs, and increase foreign exchange earnings. The author proposes a framework for monetizing NPAs, which includes identification, securitization, sale, and use of proceeds. The benefits of monetizing NPAs include increased economic activity, increased foreign exchange earnings, reduced unemployment, and increased government revenue.