The National Council on Privatisation (NCP) has approved that the Federal Government’s shares in Nigeria Unity Line (NUL) be sold through strategic investor sales.
This was one of the decisions arrived at by the council at its first meeting for 2012 which was held in February at the Presidential Villa, Abuja.
It would be recalled that NUL was privatised in December 2, 2005 to Seaforce Shipping Company Limited as the preferred bidder with a bid price of $20 million.
According to the statement issued by the Bureau of Public Enterprise at the weekend in Abuja, the transaction failed because it was largely predicated on a presidential directive to Nigeria National Petroleum Corporation (NNPC) to allow the investor lift 40 per cent of crude which was not complied with by the NNPC.
The bureau said the passage of the Nigerian Maritime Administration and Safety Agency (NIMASA) Act 2007 and Local Content Act 2011 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.