FG Set to Sell Nigeria Shipping Line
- By Simeon Ogoegbulem
- Published April 4th, 2011
- News
- Unrated
Plans are underway by the federal government to offload the Nigerian Unity Line (NUL), BusinessWorld Intelligence can now disclose. The move to sell the shipping line followed the revalidation of its operating licence as a national carrier by the Nigerian Maritime Administration and Safety Agency (Nimasa).
In order to make the sale of the shipping line hitch free, NUL’s operating licence as shipping company/agent with the Nigerian Ports Authority (NPA) has also been revalidated. In addition, all necessary papers and all outstanding annual dues with the Corporate Affairs Commission (CAC) have been updated.
Ms. Bolanle Onagoruwa, director general of the Bureau of Public Enterprises (BPE), said the privatization agency in collaboration with Nimasa would any moment from now call for Expressions of Interest (EOIs) from prospective investors. Onagoruwa stated that the sale of NUL would be through equity and would be a100 per cent transfer of government shareholding.
Onagoruwa noted that the transfer of government equity holding in the shipping line could not have come at a more appropriate time than now.
According to her, the favourable conditions that would work in favour of NUL include The Nigerian Oil and Gas Industry Content Development Act 2010 (Local Content Act) makes it mandatory for the Nigerian National Petroleum Corporation (NNPC) and other key players in the oil and gas transportation business to patronise indigenous companies and the renewed NUL licence which confers on it the status of a national carrier with several rights and privileges.
Other factors that would work in favour of a privatized NUL are the opportunities created by the Cabotage Act 2003, the existence of Nimasa as technical regulator in the maritime sector as well as the attractive provisions of its law and the absence of a national shipping line and the renewed interest of investors in acquiring NUL.
NUL is a public limited liability company which began operations in July 1996 and wholly owned by the Nigerian government through Nimasa.
The firm was incorporated to serve as a model shipping line for the Nigerian maritime industry and to optimally exploit the extensive opportunities for the bulk carriage of dry and wet cargo including crude oil and refined petroleum products.
In order to make the sale of the shipping line hitch free, NUL’s operating licence as shipping company/agent with the Nigerian Ports Authority (NPA) has also been revalidated. In addition, all necessary papers and all outstanding annual dues with the Corporate Affairs Commission (CAC) have been updated.
Ms. Bolanle Onagoruwa, director general of the Bureau of Public Enterprises (BPE), said the privatization agency in collaboration with Nimasa would any moment from now call for Expressions of Interest (EOIs) from prospective investors. Onagoruwa stated that the sale of NUL would be through equity and would be a100 per cent transfer of government shareholding.
Onagoruwa noted that the transfer of government equity holding in the shipping line could not have come at a more appropriate time than now.
According to her, the favourable conditions that would work in favour of NUL include The Nigerian Oil and Gas Industry Content Development Act 2010 (Local Content Act) makes it mandatory for the Nigerian National Petroleum Corporation (NNPC) and other key players in the oil and gas transportation business to patronise indigenous companies and the renewed NUL licence which confers on it the status of a national carrier with several rights and privileges.
Other factors that would work in favour of a privatized NUL are the opportunities created by the Cabotage Act 2003, the existence of Nimasa as technical regulator in the maritime sector as well as the attractive provisions of its law and the absence of a national shipping line and the renewed interest of investors in acquiring NUL.
NUL is a public limited liability company which began operations in July 1996 and wholly owned by the Nigerian government through Nimasa.
The firm was incorporated to serve as a model shipping line for the Nigerian maritime industry and to optimally exploit the extensive opportunities for the bulk carriage of dry and wet cargo including crude oil and refined petroleum products.
