Move to Sell MV Abuja Terminates NUL Quotation
By Yakubu Olaleye
Recent appointment of C.W. Kellock and Company Limited, a United Kingdom based firm as the shipbroker and adviser for the sale of the only vessel of the Nigerian Unity Line Plc (NUL), M.V. Abuja has finally terminated a five-year old decision to list the NUL on the Nigerian Stock Exchange (NSE).
Logistic problems had halted the initial efforts at listing the company on the NSE. But the Minister of State in the Ministry of Transport, Alhaji Isa Yuguda, explained to THISDAY last year that the company was being slated for privatisation and that the company would be privatised before the end of the year.
"The Unity Line has been slated for privatization. The National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE) will work on its privatisation before the end of the year" Yagudu explained.
About two weeks ago, the NCP through the BPE announced the appointment of the UK based firm in the bid to sell the only ship of the company.
The bureau in a statement signed by its Deputy Director (Media Relations), Mr. Joe Chigbo Anichebe, explained that the C.W Kellock was appointed being the only company which responded to its "Request for Proposals (RFPs) after the expirations of the deadline of the RFPs forwarded to some selected shipbrokers on two occasion".
M.V Abuja was about four weeks ago released to the Federal Government after over one year of arrest in Sri Lanka.
According to the bureau, C.W. Kellock is charged with the responsibility of valuing the vessel as well as assist in international marketing of the vessel, taking into account its location trading history and specifications.
In furtherance of this, the United Kingdom-based shipbroker has been mandated to supervise the conduct and sale of the vessel with speed and transparency.
The BPE explained that the UK firm is also expected to complete sale of M.V. Abuja, in four weeks upon receipt of instruction from the bureau.
The shipbroker, according to the BPE, has been instructed, "to dispose the vessel through internationally acceptable tender process that accords with maritime industry best practices."
Founded in 1820, for over 100 years, C.W. Kellock has been appointed brokers and valuers of the Admiralty Marshall of the Courts of Justice in England and Wales. They are also international shipbrokers operating from London and are a member of the Eggar Forrester Group offering broking services to the shipping and property markets with an annual turnover of over œ10 million.
Its clients also include banks, lawyers, insurers, national shipping lines and other government agencies.
The BPE statement also disclosed that a law firm, F.O. Akinrele and Co. would be appointed as legal adviser to assist it in all legal issues arising from the sale of the vessel, immediately the NCP approved the C.W. Kellock's appointment.
After over a year of arrest, MV Abuja, the only vessel belonging to the Nigerian Unity Line (NUL), a national carrier owned by the Federal Government was released about four weeks ago, precisely, February 14.
The Managing Director of the company, Rear Admiral Samuel Atukum (rtd) had disclosed that the vessel was released on the order of the Appeal Court of Colombo after a bank guarantee of US$500,000.00.
The 10,000 deadweight container ship had been detained in Sri Lanka on the order of the court following a case filed by the crew.
The crew had gone to court to get the ship detained as the management of the NUL could not settle their salaries, allowances and other logistics needed for the vessel's maintenance.
Atukum explained that the sum of $969,414.29 was approved by President Olusegun Obasanjo to pay the crew, repair the vessel and settle other commitments.
He however said that the crew insisted on being paid $500,000 instead of $164,114.50 as at August last year, adding that this was part of the nightmare of the management in getting the vessel released.
According to him, the crew in a bid to have their way had filed an application to sell the vessel as at September on the claims that she was not in good condition and that the NUL was bankrupt.
"NUL in turn filed an application to release the vessel on condition of putting up a bank guarantee. On 5th November, the High Court refused the application to sell the vessel and order her release on a guarantee of US$250,000", he said.
The crew was said to have two days later filed an appeal against the amount of the guarantee, while the Master filed a caveat against the release of the vessel on the grounds that the guarantee did not take care of his claim.
"The High court had taken his claim into account. In order to save time, NUL conceded to increase the amount considerably at the Appeal court because they had inflated their claim to $700,000 as against $220,000", he said.
Atukum also disclosed that apart from the crew, some vested interests outside Nigeria were eager to see the vessel auctiuoned.
"The people in that area wanted a cheap ship to buy", he said.
Atukum did not say when the ship is expected back in the country, but sources close to the BPE told THISDAY then that the vessel may be sold in Sri-Lanka.
Already, a Federal Government delegation headed by Alhaji I.S. Njiddah, Direcctor, Transport and Aviation, BPE has visited Sri Lanka to assess the state of the ship.
NUL was floated by the Federal Government soon after the demise of the Nigrian National Shipping Line (NNSL) in 1995 and it (NUL) was immediately slated for listing on the NSE