16 December 2014, Lagos – The federal government on Monday formally handed over its 51 per cent shares (161,814,000 shares) in the residual assets of Stallion Property and Development Company (SPDC) to the Nigerian National Petroleum Corporation Pension Fund Limited (NNPC PFL), effectively ending government’s management or control of the SPDC.
Speaking in Abuja at the formal handover ceremony, the Director General, Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, said the move followed a 2006 request by BPE for approval by the National Council on Privatisation (NCP) for the privatisation of government’s interest in the company so that proceeds from the divestment could be used to bridge the previous funding gap of about N63 billion in NNPC staff pension fund.
He said in line with that strategy, the net proceeds of the first transaction had been paid to NNPC staff pension fund which helped to reduce the liabilities at that time.
He said: “However, there were other unsold assets that did not receive any expression of interest during the first transactions. These assets were to be sold (notionally) to SPDC in accordance with the pre-emptive rights provided in the company’s Memorandum and Articles of Association (MEMART).”
He said the outcome was a seven-year unwavering desire, determination and commendable perseverance by the management and staff of SPDC/NNPC Pension Limited who waited patiently despite irregular staff salaries and provocative threats from the Federal Capital Development Authority (FCDA) for the transaction to be complete.
The eventual handover means SPDC would now have freedom to compete unhindered and take its rightful place in the real estate sector of the economy.
Dikki further said the privatisation agency was working with the Federal Ministry of Lands, Housing and Urban Development on the reforms and restructuring of the housing sector and urged the SPDC to seize the opportunity to help close the over 17 million housing deficit in the country.
He also urged the NNPC PFL to work hard and inject funds in SPDC in order to harness the huge opportunities and build a viable company, create more employment and add value to the economy.
– This Day