Shipping fleet: Nigerian govt inaugurates committee for Nigeria’s 60% stake

*Rotimi Chibuike Amaechi, Nigeria's minister of transport.

*Rotimi Chibuike Amaechi, Nigeria’s Minister of Transportation

04 October 2016, Lagos – The Federal Government has constituted a committee to screen shipping operators interested in acquiring part of the 60 percent holding for Nigerians in the proposed National fleet.

The fleet  is expected to have a 40 percent foreign ownership. Engr. Greg Ogbeifun,  Chairman of the Ship Owners Association of Nigeria,  SOAN, and Chairman/CEO,  Starzs Investments Group, made this known at the Taiwo Afolabi annual maritime conference hosted by the Maritime Forum of the University of Lagos. Ogbeifun, who said the committee has commenced work, also expressed confidence that the new national fleet, unlike the old one, will be a success.

He pointed out that the Minister of Transportation, Rotimi Amaechi, has given  assurance of government’s political will at ensuring that the new project gets cargo to carry. He quoted the minister as saying that the present government is determined to do everything possible to ensure that the new national carrier succeeds.

Recall that Nigeria and Singapore recently reached an agreement to establish a private sector driven National Carrier with stake-holding of 60 to 40 percent respectively.

Working relationship

The agreement was reached after a meeting in Singapore between the Nigerian delegation led by the Executive Secretary of the Nigerian Shippers Council, NSC, Hassan Bello, and representatives of Pacific International Lines, PIL, one of the biggest ship operators.

Bello, who is also the chairman of the Committee for the Actualisation of the National Carrier set up by the Ministry of Transportation, said while the Pacific International Lines, PIL, is expected to own 40 percent of the stake, private Nigerian ship operators are expected to own the remaining 60 percent.

In his words, “We have a working relationship with PIL in Singapore; they are one of the big ship operators. They are extremely capable and operate to international standards. With the arrangement, they are expected to have 40 percent of the venture while Nigeria is expected to have 60 percent. The 60 per cent stake goes to Nigeria entrepreneurs not  the government. We are expecting comprehensive outlined “Business Case” so that we go through the process and procedure to look at all the ramifications and expert study of what is going to happen.”

He pointed out that the project will also involve  other industries like the banks, the insurance companies and others that will be able to provide financial support. This will also help its expansion; it is very important for our national pride that we have a national shipping line, he noted.

  • Vanguard
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