Recession: How can WHATSAPP be costlier than NNPC+NLNG+Presidential Aircrafts+4 Refineries. Something is definitely wrong!!!
By: Solomon Adeola Adeyinka

"WhatsApp Inc., based in Mountain View, California, United States, was acquired by Facebook Inc. (Mark Zuckerberg) on February 19, 2014, for approximately US$19.3 billion".

It's no more news that The Federal Government have concluded arrangements to sell the nation’s critical assets in order to raise $15 billion to rescue the country out of economic recession. Minister of Budget and National Planning, Senator Udoma Udo Udoma, disclosed this at a cabinet retreat hosted at the presidential villa, Abuja. Some of the assets being considered for sale are government shares in Joint Venture Companies (JVCs) and the Nigeria Liquefied Natural Gas (NLNG). The national assets to be sold include the Kaduna, Warri, and Port-Harcourt refineries as well as some aircraft in the presidential fleet.

The Federal Government, through the Nigerian National Petroleum Corporation (NNPC), owns 49 per cent shares in NLNG Limited while Shell Gas B.V. owns 25.6 per cent, Total LNG Nigeria Ltd owns 15 per cent and Eni International owns 10.4 per cent. In the four refineries in Warri, Port Harcourt and Kaduna, the Federal Government has 100 per cent stake, which is up for sale.

The government has, since 1999 when the country returned to democracy, expended N264 billion on maintenance of the four refineries. In spite of billions claimed to have been spent by the NNPC over the last 16 years on Turn Around Maintenance (TAM), the country’s refineries have remained in comatose. The four refineries located in Port-Harcourt (two), Warri and Kaduna have a combined capacity to refine 445,000 barrels of crude per day.

The Senate backed the Federal Government in the planned sales of the national assets. Senate President Bukola Saraki, at a plenary, urged President Muhammadu Buhari to sell some important national assets as part of efforts to boost the country’s dwindling foreign reserves.

According to Saraki, “The executive must raise capital from asset sales and other sources to shore up foreign reserves. This will calm investors, discourage currency speculation and stabilise the economy.

“The measures should include part sale of NLNG Holdings; reduction of government’s share in upstream oil joint venture operations; sale of government stake in financial institutions e.g. Africa Finance Corporation; and the privatization and concession of major/regional airports and refineries.”

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, and Africa’s richest man, Aliko Dangote,have expressed support for the sale of the national assets.
Emefiele said the best option open to government is to sell the assets. Aliko Dangote, specifically told the Federal Government to sell its stake in the NLNG, to beef up foreign reserves.

A communique issued at the end of the ministerial retreat indicate that the Budget and National Planning Minister had explained that “government was working hard to resolve the militant disruptions in the Niger Delta, and, in addition, a fiscal stimulus strategy was being developed involving, amongst other things, a plan to generate and inject large amount of funds, principally in foreign currency, estimated at $10 – $15 billion into the economy through Asset Sales, Advance Payment for License renewals, infrastructure.”

What comes as a surprise however is how less visionary Nigeria as a nation has become under successive kleptocratic and autocratic leaders disguised in the form of democratic leadership.

The country Nigeria is a business venture with many exploitable loopholes being run in a monopolistic manner by whosoever have usurped authority of the company since amalgamation. Thereby posing financial and security threat to its shareholders.

Every political appointee (plus technocrats) in successive government administrations over the years have been over-employed and evidently overpaid. Overpaid for services too little to contribute significantly in humanitarian development, technological innovation, scientific advancement, political stability, insurance and security for the company Nigeria.

The workforce of this company needs be revitalized, revolutionized and reinvented to thrive in the ever increasing complexity and demand for unique skills and ideas of this 21st century. The same set of leaders at the helm of affairs since 1999 (20th century) still dictate the future of this nation by occupying political seats meant for incorruptible sharp minds.

Several mission statements such as 7, 10, 12 and Transformation agendas have been proposed. And several leaders have set bleak visions for 2020 without actually setting sails. Youwin is not the answer, neither is it NYSC scheme, #5,000 social intervention scheme is not the way forward. N-power's 500,000 teachers is a mockery of our wisdom and intellect as a nation. The first step in the right direction is to see Nigeria as the business venture it really is and take informed harvardic business administration decisions to make it profitable for you and I.

Regards: Financial Watch, Wikipedia.

Lalasticlala fp

Chai

Abeg stop misleading people. NLNG only is worth more than $19billion. The company pays an average of $1.5 billion to government for its share alone.

@Grownnaira, no be only FG own NLNG o.

AdeolaOmoOba:
@Grownnaira, no be only FG own NLNG o.

That's what I am saying. The FG owns only 49% of the company. And its average annual earnings from that 49% is about $1.5 billion. The company as a whole makes btw $6 billion to $12 billion dollars annually depending on the global oil price.

Whatsapp is global, those are local