Friday, 2 March 2012

Nigeria to sell stakes in Nigeria Unity Line-BPE

Nigeria's  National Council on Privatisation (NCP),  the apex body for approving the country's privatisation exercise, has approved that the country sell its shares in Nigeria Unity Line (NUL) to strategic investor sales.
Namadi Sambo, Chairman NCP and Nigeria's Vice President 

The NUL was initially sold on December 2, 2005 to Seaforce Shipping Company Limited which had agreed to pay a bid price of $20, 000, 000.00 (Twenty million dollars);

However the transaction failed because the Nigeria National Petroleum Corporation (NNPC)  ignored a term in the sales agreement that compelled it to allow the investor lift 40% of crude sold by it. Surprisingly, the government also did not move to enforce the agreement. 

The Bureau of Public Enterprises (BPE) statement however  notes that " the passage of the Nigerian Maritime Administration and Safety Agency (NIMASA) Act 2007(here) and Local Content Act 2011 (here) are current positive indicators in the maritime industry that have added value to NUL and have provided the necessary institutional framework to enforce compliance with extant laws. 

The Statement also says that "some prospective investors have shown interest in NUL"

The BPE also states that  it had consistently ensured that NUL’s license is renewed in order to maintain its local and international relevance. 

 NUL has no liability and is not encumbered in any way affirms the BPE statement. 

NUL is a public limited liability company wholly owned by the Nigerian government through NIMASA. 

It was incorporated on 23rd January, 1995 and commenced operations in July 1996.

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