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Go and read the reports on the privatization of Eleme petrochemical.
The success of Eleme was hampered by the project finance clauses, debts and lack of turnaround maintenance.
The FG absorbed the debts, asked Paris club to write off project finance commitments
The success of Eleme was hampered by the project finance clauses, debts and lack of turnaround maintenance.
The FG absorbed the debts, asked Paris club to write off project finance commitments
As part of the debt forgiveness package..
The FG freed Eleme from debts and absorbed all its liabilities.
The FG freed Eleme from debts and absorbed all its liabilities.
"It is interesting to note that the available report on EPCL stated that “the absence of the two-year TAM of the company’s plants and facilities made it impossible for the company to achieve profitability” and “the level of the company’s indebtedness also greatly hampered.
the company’s ability to achieve profitability”, whereas after four months of turnaround maintenance, the company was operating at a healthy profit; for the first full year of operation earned a net profit margin of 36.1 per cent after tax; and in the second
second full year of operation had increased its net profit margin to an astounding 43.4 per cent after tax. The company was able to pay its owners a dividend of N9.5 billion (approximately $74 million) after only one year of operation.
Simple turn around maintenance, same thing that killed our refineries. Are you saying that the government under this democratic dispensation cannot ensure this? I am a fan of privatization but Nigeria can operate both..
