NPA terminates Intels pilotage over controversial $145.84million

by on May 20, 2019

The Nigerian Ports Authority (NPA) has terminated its boats pilotage monitoring and supervision agreement with Intels Nigeria Limited after about two years of bickering by both parties. Intels is a leading integrated logistics and facilities services provider in the maritime and oil and gas logistics sectors of the economy. The company is owned by former vice president and Peoples Democratic Party (PDP) presidential candidate, Alhaji Atiku Abubakar.

In a letter dated Friday, March 29, addressed to the Managing Director of Intels, NPA said the decision to revoke the contract was taken in line with Article 8 (C) of its agreement with Intels, dated February 11, 2011.

The letter signed by NPA’s assistant general manager, legal services, read in part, “We refer to the agreement dated 11th February, 2011 and 24th August, 2018 between the NPA and Intels Nigeria Limited for the monitoring and supervision of oil industry related activities in the compulsory pilotage districts of the authority (service boat operator).

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“The NPA (the principal ) hereby serves on you Intels Nigeria Limited, (the managing agent) notice of termination in line with article 8 (C) of its agreement with Intels, dated 11th February, 2011, which said notice shall expire three months from the date of this notice of termination.” In a letter dated Wednesday, March 27, addressed to the Managing Director of NPA, Hadiza Bala-Usman, NPA’s executive director, finance and administration, Mohammed Bello-Koko, had accused Intels of non-compliance with the presidential directive and circular on implementation of Treasury Single Account (TSA) and Article 4.1 of the executed supplemental agreement by refusing to remit the sum of $145, 849,309.33 being outstanding service boat revenue generated from November 1, 2017 to October 31, 2018.

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According to Bello-Koko, Article 4.1 of the executed supplemental agreement states, “The total revenue generated on behalf of the principal in each of the pilotage districts from the service boat operations shall be paid directly into the principal’s TSA at designated commercial banks which will be swept daily into the principal’s corresponding TSA at the Central Bank of Nigeria (CBN).”

He stated that Intels neither remitted the sum of $55.72 million, which it pledged to remit in a letter dated Tuesday, February 12, nor the sum of $145.84 million, which it demanded via various letters. ThisDay reports that it was on this ground that NPA decided to cancel the authority’s agreement with Intels Nigeria Limited. The decision according to a source, should have come much earlier but had wait to avoid giving the termination political colouration.

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The source also admitted that NPA is owing Intels about $600 million which it intends to pay from the revenue source. On how NPA intends to proceed with revenue collection going forward, the source stated that it was going to go through the process of engaging another company when the termination process is fully executed.

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