The Governor of the Central Bank of Nigeria,
Godwin Emefiele, has advised the president-
elect, Muhammadu Buhari, to consider selling
off nearly half of Nigeria’s Joint Venture equity
with multinational oil companies, to enable the
new government to raise a huge balance for
immediate developmental projects.
CBN Governor, Godwin Emefiele.
The CBN governor said the incoming administration
should give serious thought to the proposal for
Nigeria to scale down its current majority stakes in
the joint ventures with various multinational oil
companies in the country.
The Nigerian National Petroleum Corporation
currently holds, on behalf of the Nigerian
government, at least 55 per cent equity in the joint
ventures with Shell, ExxonMobil, Chevron, Total,
Nigerian Agip, and Pan Ocean.
The partnership means for each daily production of
oil in Nigeria, the government receives 55 per cent
after the production cost has been deducted.
Emefiele wants the government to shed at least 25
per cent of that equity to raise some emergency
funds for infrastructure development in key sectors
of the economy.
The CBN governor said relevant officials in the Bank
have already been directed to evaluate prospects of
the proposal to see how it could be realized from
the JVs, which account for more than 50 percent of
Nigeria’s daily average oil production of 2.3 million
barrels.
Emefiele told the Financial Times of London that the
outcome of the study would be presented to Buhari
when he assumes office on May 29.
The governor expressed confidence that Nigeria
may rake in about $75 billion (about N14.93 trillion)
if the government agrees to cut its JV equity to only
30 per cent.
Private equity companies, he said, could be
encouraged to take over the relinquished
government stakes and compete with the oil
companies, to contribute to the development of the
industry.
Part of the proceeds from the equity sale, Emefiele
said, could be utilized in rebuilding macroeconomic
buffers in the economy through investments in
transport and energy developments projects to
grow the economy and create jobs.
He said the government could adjust upwards
petroleum profit taxes payable by the oil companies,
to compensate for the reduction in the government’s
equity.
The equity cut back proposal, the CBN governor
explained, was one of the most attractive options
available in view of the impact of the drastic drop in
revenue earnings in recent times and the need to
avoid piling up more debts.
While Emefiele’s proposal could meet stiff resistance
from oil firms, politicians and their allies dependent
on oil resources for patronage, the idea would likely
be welcomed by others who support the idea of
unbundling the NNPC and curbing corruption by
allowing private participation in the sector.
For years Nigeria’s oil production has stagnated at a
2 million barrels daily average due to several
factors, including the failure to pass the Petroleum
Industry Bill.
During his campaign, Buhari gave a hint as to what
his administration would do after taking office on
May 29.
"Our manifesto says we are going to break up the
NNPC,” he suggested, “but the ultimate answer may
well be to divest the whole thing. It is an idea that
will be seriously looked at.”
Buhari, however, said the immediate priority of his
administration would be to get the industry back to
a position where revenues that belong to the people
are getting into the federation account by stopping
the leakages, which are costing the nation billions, if
not trillions, of naira.
Meanwhile, the Central Bank of Nigeria (CBN) has
warned individuals and corporate organisations
against the use of foreign currency to carry out
transactions in the country.


Http:www.naij.com/426566-cbn-governor-advises-buhari-on-nigerias-economy.html

Sauce

OK oo

san316:
Sauce

hope you are satisfied now

Eediot...why u no carry your advice give Mr Clueless....mumu.

Onyioberibe

san316:
Sauce

So many of them eg onion sauce, pepper sauce, tomato sauce, garlic sauce, ginger sauce and chicken sauce. So choose any that delights you.

soe:
Eediot...why u no carry your advice give Mr Clueless....mumu.

Onyioberibe

Ha Ha now. Easy with the insult. The man is trying to protect himself and keep his job. On a serious note, if GMB didn't win, it's business as usual for them? Thank GOD for the shift in power!

Keep your advice till more appropriate time.

Modified*
Though a lot of money for infrastructural development will be available to government if advice is taken but what are the long term effects of relinquishing our majority shareholding?

This congo head man is talking as if he won't be questioned if he's found wanting. He is part of this looting administration and he's likely not to go free. U will complete ur I.T in kirikiri if possible.

Not interested in his so-called advice...
Has he recovered the missing $20bn from Ministry of Petroleum?

What he is saying is government should sell its main source of revenue now at a time when oil prices are low?

Disseminated intravascular cosqulopathy.........Fibrotic ischeamic Encephalopathy..