FG hands over 51% shares of Stallion Property to NNPC Pension Fund

By Etuka Sunday

Federal government yesterday handed over its remaining 51% shareholding in Stallion Property Development Company (SPDC) to Nigerian National Petroleum Corporation (NNPC PFL) Pension Fund Limited.

The formal handover ceremony was performed by the Director General, Bureau of Public Enterprises (BPE), Mr Benjamin Dikki in Abuja.

Speaking, the BPE boss said, “at the 31st October, 2013 meeting of the National Council Privatization (NCP), BPE sought the council’s approval for the privatization of the Federal Government’s 51 percent shares in the residual assets of the SPDC to NNPC Pension Fund Limited NNPC PFL.

“The request was predicated on an earlier approval granted in 2006, that the proceeds from the divestment of FG’s 51 per cent shareholding in SPDC be used to part bridge the funding gap (about N63 billion then) in the NNPC staff pension fund,” he added.

Dikki said in line with this strategy, the net proceeds of the first translation was paid to the NNPC Staff Pension fund which helped to reduce the liabilities. However, there were other unsold assets that did not receive any expressions of interest during the first transaction. These assets were to be sold (notionally) to SPDC in accordance with the pre-emptive rights provided in the company’s Memorandum of Articles of Association (MEMART).

He said, “Today’s handover of SPDC to the NNPC PFL is a clear confirmation of the word of late Nelson Mandela that says ‘things always seem impossible until they are done.’ This handover is the outcome of seven years of unwavering desire, determination and commendable perseverance by the management and staff of SPDC/NNPC Pension Fund Ltd who waited patiently (despite irregular staff salaries, and recon atom threat from FCDA) for this transaction to be completed so that SPDC could be free to compete (unhindered) and take its rightful place in the real estate sector.”

According to him, presidency had “directed and ensured that thorough due diligence was carried out by BPE and other relevant government agencies on SPDC and NNPC pension fund before approval was granted for the notional divestment of the FG’s shareholding in SPDC to NNPC PFL.

This is to bridge the gap in the NNPC’s pension fund and free SPDC from government’s management or control.

“Having concluded the transaction, it is therefore apt to point out that available statistics shows that the housing deficit in Nigeria is about 17 million units. BPE is currently working with the Federal Ministry of Lands, Housing and Urban Development on the reforms and restructuring of the housing sector. There is therefore a huge opportunity to be tapped by SPDC in the sector,” he concluded.