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.
In addition, some prospective investors have shown interest in NUL.
The bureau said it had consistently ensured that NUL’s licence was renewed in order to maintain its local and international relevance, stating that, NUL has no liability and was not encumbered in any way.
NUL is a public limited liability company wholly owned by the Nigerian government through NIMASA. It was incorporated on January 23, 1995 and commenced operations in July 1996.
BPE explained that 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 the affreighment of crude oil and refined petroleum products.)