₦airaland Forum

xpat1:
Emiefele was appointed by Goodluck he never advised Jonathan to do so, why Buhari?...

He must have adviced GEJ to do same, he has to go through the media to reach Buhari because he (Buhari) is yet to be sworn in.

I don't even want to know.

This man is 100% silly!

We can't have it that way, with foreigners running our economy however they see pleased.

We still talking PIB.

Emefiele is a disappointment.

Obiagelli:
I understand these things happen.

Calm down sweetie, I just wanna know you better.

Obiagelli:
Okay, but why? Are they going to the reserves or what?

They are used for the stabilization fund for the electricity sector.

sleekymag:
Well I would say instead of selling of 25% of its stake and keep just 30%, why not sell off 15% and retain 40%? This way the FG would raise $45 billion which equates to N8.94 trillion or 60% of the said N14.9 trillion. This way, and with prudent application of the resources, infrastructural development projects can still be carried out, the new stake owners, should have local stakes (also with state govts of the regions), and petroleum tax can still be raised like Emefiele suggested. It's a win-win situation both for the short term and long term IMHO.

Good point! I agree with you. I understand the reluctance of most Nigerians to want to just "sell off" everything but they must know we will start moving away from oil dependence in a matter of decades. The earlier we started investing in other sectors massively, the better. We need cash to do this and it shouldn't be by increasing our debt profile.

But your suggestion makes sense.

Billyonaire:
Calm down sweetie, I just wanna know you better.

okay

Sweetguy25:
They are used for the stabilization fund for the electricity sector.

Oh great. We sell facilities and then give the money back to the buys in stabilization.

Sweetguy25:
His spending is outlined in 2015 budget. Your assumption is nonsense. The idea of blocking all leakages and recovering loot is utter nonsense too.
What loot is he going to recover and how much will they recover from blocking leakages?

You people are set for a fun ride under Buhari.

Okay man. Like I said, let's just watch and see. GMB has not entered, people are running around shitting their pants. DAM is begging, EFCC is acting, NNPC is returning money, people are aligning, completing contracts. . . etc.

Just watch and see! Patience!

gbl01:
But seriously, this APC guys. Can't you argue, debate and gist without insults? Elections have come and gone. Grow up guys

No, they can't. They just can't! It's all a part of the programming.

CHESSBOARD:
How can we be selling our JVs while other countries have almost full operations of their oil business, eg Saudi Aramco and petrobras, so we cant even manage the 60 % equity... this is crazy leaving our major source of revenue to devouring foreign coys.

I don't think they're meant to be selling to foreign companies. The private equity companies to buy the divested equities should be Nigerian companies.

Obiagelli:
okay

Only condition is that Buhari we must educate Buhari not to sell off Nigeria's Equity in the oil sector. That's the only honey-comb uniting all the bees together.

ki02020:
Am not really good in public finance but I think that is a prodigal idea what will happen when the money finish

this emeifele is not man enough,he wants to start speaking when their is divergence btw him and the outgoing govt.he has been appointed since may/June 2014 when crude started its slide.
like you said its the last resort to fall back on.
let the govt. task itself with thinking

stronger:
Good point! I agree with you. I understand the reluctance of most Nigerians to want to just "sell off" everything but they must know we will start moving away from oil dependence in a matter of decades. The earlier we started investing in other sectors massively, the better. We need cash to do this and it shouldn't be by increasing our debt profile.

But your suggestion makes sense.

Thanks man. At least, like u said, we don't have to increase our debt profile to get these developmental projects going. Let's assume it's just about fixing our refineries such that we become a net exporter of refined oil products. That alone is something. Our 40% stake would still be there, plus increased revenue from increased taxes to the JV companies. Employment opportunities would also abound.

stronger:
Okay man. Like I said, let's just watch and see. GMB has not entered, people are running around shitting their pants. DAM is begging, EFCC is acting, NNPC is returning money, people are aligning, completing contracts. . . etc.

Just watch and see! Patience!

Who is running and shittin in their pants? Lol, you guys will be so disappointed.

I am an economist cum chartered accountant with experience and training in public finance and i can tell you that this is not a good proposal coming from the CBN helms man. He advised that only 30 percent should be retained. So, if crude oil price crashes again in the future will the government now completely divest to raise fund- of course not.

What government needs to do are;

1. Sanitize the industry of corruption and excessive leakages
2. Restructure the investment arm of NNPC- NAPIMS
3. Transfer all its interest in oil and gas assets to the investment company
4. List the company on stock exchange market for access to cheap, sustainable and developmental finance thereby freeing up the government at the centre with funding challenges.

I have always doubted the competence of this CBN governor.

PassingShot:
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?

That's the question: you don't sacrificeyour ffuture for some immediate pleasures! You don't do that!

What the CBN governor is proposing is actualy not a bad idea. The problem is the current economic structure of Nigeria. A situation where economic planning for the country is concentrated at the center (Feeding Bottle System) only make room for, underdevelopment, inefficiency and mediocrity. The only solution to Nigeria's economic and infrastructural problem is Economic Federalism, ie Federalism in its true form.

stronger:
This makes sense. Sell part of it off and raise up petroleum tax to make up for the reduction in revenue.

This provides cash to develop badly needed infrastructure (electricity, transportation etc) that will drive growth in non-oil sectors, without having to increase debt profile significantly.

Of course this means a lot of cash in the system and only a responsible govt will be able to handle it well. This is why the CBN governor did not suggest it to GEJ! They would have used it for elections. Good to see that he has more confidence in GMB!

and u neva think of it that price of petroleum products wl escalate?

Now everybody is advising Buhari

sleekymag:
Well I would say instead of selling of 25% of its stake and keep just 30%, why not sell off 15% and retain 40%? This way the FG would raise $45 billion which equates to N8.94 trillion or 60% of the said N14.9 trillion. This way, and with prudent application of the resources, infrastructural development projects can still be carried out, the new stake owners, should have local stakes (also with state govts of the regions), and petroleum tax can still be raised like Emefiele suggested. It's a win-win situation both for the short term and long term IMHO.

I've read your comment. Let me present this scenerio:

If your company is in Joint Venture partnership of (60-40)% equity ratio with the other company, what will you do as regards Board Resolutions? How will your company respect their interest as regards M.O.U?

This is a brilliant idea. We need serious cash for infrastructure and we need the cash now.

For those talking about mismanagement, you should know that we don't have to sell for cash.
- Want a high speed rail from Abuja to Lagos, sell a X% equity to the construction firm.
- Want to increase power generation by building more power stations, do the same thing.

Look at it like hire purchasing infrastructure with our God given natural resources.
Another point to note is that we can always transfer for a period of time e.g Julius Berger says it costs X amount to build y infrastructure, and we say ok take 10% in our JV stake here, in about 6 years, you should have gotten your money with profit then you transfer it back to us.


I think this idea is what looking at.

No way! Privatisation seem to be doing more harm to Nigeria than good.

Btw, I don't want to wake up one morning and discover that my front yard had been auctioned off to one man from canadanskewa. God forbid!

omenka:
Oponu dindinrin.

anyway dont quote me again and i wont...at least I am not the only one who saw how stupid u were with ur words

derecho:
so you think He didn't consider the implications? Mind you,he's privy to the true state of our economy.
Anyways,it's. Up to Buhari.

Just like GEJ considered the implications of paying cabals trillions in subsidy instead of fighting corruption and implementing reforms in the oil sector? Did his decisions amount to the interest of Nigerians? When you begin to trust everything your leaders tell you rather than using your own common sense, one day they'll sell your heritage for their own convenience sake and you'll be living in the fallacy of "they know what they're doing". Yes they know what they're doing, sometimes they're just not doing it in your own interest, so you must be watchful and resist all attempts by them to ignore the real issues just to make it convenient for them to do their job and get paid while you continue to suffer the effects after they're gone. Do you think your votes would've counted if you had obeyed the IGP and voted and gone home to wait for results to be compiled and announced? Be wise, man!

Don't do it! This money will disappear. GMB needs to access the situation in terms of costs, benefits and return on investment. If this is going to be done, proceeeds must be put in escrow account to be managed by reputable intl firms.They CAN only touch the account if the project has been started and it must be fee-for-performance contract. No 20/50/70% upfront payment. 4 keys areas must be identified first.

JuanDeDios:
I don't think they're meant to be selling to foreign companies. The private equity companies to buy the divested equities should be Nigerian companies.

we are talking about $70 Billion here , how many Nigerian companies or individuals have it, they will always go to foreign coys

No no.... Dats is scam in disguise.... Let's start from the scratch.. We are not in a hurry to buikd this nation... Enough of selling public funds. Nigeria must get it right this time.. I thought CBN governor get sense. *hissed*

The advice isn't entirely out of place, but I think it is a very premature one. It simply does not make sense to raise money for the sake of it. There must be a definite shopping list (spending plan), or else there will be wastages.

First, and foremost, we need to plug all the leakages in both our oil and non-oil revenue streams. Starting with the NNPC and FIRS. I believe if we do that we will be able raise our revenue profile by at least 25-30 percent. Secondly, we need to ensure that we get commensurate value for every penny spent. For it is far more profitable to raise and spend 5 trillion judiciously than to raise 14trillion and waste half of it. For this reason, I think it is best we reorder all of our priorities and develop a very effective budgeting and implementation routine before ever thinking of increasing taxes or selling off National assets.

CHESSBOARD:
we are talking about $70 Billion here , how many Nigerian companies or individuals have it, they will always go to foreign coys

No Naija companies pls! Cos it might end up with the cabals. Same way Naija companies are not managing our foreign reserves!!

dearpreye:
That's the question: you don't sacrificeyour ffuture for some immediate pleasures! You don't do that!

I am neither here nor there on this. Let's wait and see GMB's administration position on the advice.

I want to believe that a lot of brainstorming will guide them to take a decision because it's not as straight forward as it looks.

The same Emiefele that transfered $20bill to the zenith bank account. big thief

Obiagelli:
I agree it requires serious brainstorming and might even require some NASS act too. The money must never be shared among states.

I watched the interview.

Share among state ke! That can never happen with sucg money nah.