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No wisdom in CBN gov’s advise to sell JV stakes -RMAFC

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Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Mr. Elias Mbam has said it would be unwise for the country to sell its equity in Joint Venture partnerships with international oil companies.

Mbam in a statement in Abuja on Wednesday asked the President-elect, Muhammadu Buhari, not to heed such advice, as Nigeria in the long run, would lose rather than gain revenue in the proposed transaction of reducing its stake in the ventures through equity sale.

Governor of Central Bank of Nigeria, Mr. Godwin Emefile, had reportedly urged Buhari to consider selling about 30 per cent of the nation’s stake in the ventures in order to raise funds required for immediate infrastructure development.

The Nigerian National Petroleum Corporation, on behalf of the government, holds about 55 per cent equity in the joint venture operations with multinational oil corporations, including Shell, ExxonMobil, Chevron, Total, Nigerian Agip, and Pan Ocean.

However, Mbam said outright sale of the federation’s equity holdings in the JVs with IOCs would directly impact negatively on the federation account.

According to him, the equity crude from the JVs, which forms most of the revenue from oil to the federation account, would be lost completely should the government sell off its equity in the joint ventures.

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0 Comments

  1. Ifenkili

    April 30, 2015 at 1:58 pm

    this emiefile guy tho

  2. Apachee zooma

    April 30, 2015 at 4:59 pm

    Nothing wrong with divesting. But who buys? With the bunch of rent-seeking capitalists in our fold, asset stripping is name of the game, no value added. We simply need a new order. Hope change truly comes.

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