Emefiele has asked CBN officials to determine how much could be raised if the country’s majority stakes in joint ventures with multinational oil companies are sold.
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has advised the incoming government, to be led by President-elect, Muhammadu Buhari, to consider selling the country’s majority stakes in joint ventures with multinational oil companies in order to raise much-needed funds for infrastructure development.
The CBN governor has asked officials of the apex bank to assess how much could be raised if the state-owned Nigerian National Petroleum Corporation substantially reduced its 55 per cent equity in the joint ventures — with Royal Dutch Shell, Chevron, ExxonMobil, Total and ENI, according to the Financial Times.
Emefiele also stated that $75bn is a realistic target, and that private equity groups could be encouraged to compete with the oil companies for acquisitions to ensure the price is competitive.
“If you sell down a 30 per cent stake, you could raise something substantial. It is an option they need to consider as a way of raising further funding,” the CBN Governor told FT.
“It is an option now because our revenues have dropped and we don’t need to pile on more debt. The alternative is to look for ways of releasing value from some of the government’s assets,” he added.
Emefiele further suggested that a substantial portion of the funds raised should be invested in transport and energy developments that would “grow the economy and create jobs”.