INTELS: NPA Deliberately Frustrating Attempts To Address Pilotage Agreement

INTELS Nigeria Limited, oil and gas logistic company co-owned by ex-vice president Atiku Abubakar, has reacted to the termination of a pilotage agency agreement with the Nigeria Ports Authority, NPA.

In a statement issued in Lagos on Tuesday, INTELS Spokesman, Mr Bolaji Akinola, said the NPA deliberately frustrated attempts by the logistic company to address issues raised by the introduction of the Treasury Single Account (TSA) in execution of its agreement.

NPA had last week terminated the boats pilotage monitoring and supervision agreement with INTELS, saying the company refused to comply with the directive to pay into the TSA.

Akinola said that the issues arose because the pilotage agency agreement signed in 2010, did not envisage the TSA and as such did not factor it in its implementation.

According to him INTELS borrowed 1.4 billion dollars (N428.4 billion) from banks to execute the agreement with the understanding that the debt would be offset from monies realised from the pilotage services paid directly to the banks.

The Managing Director of NPA, Ms Hadiza Usman had told newsmen on Monday in Lagos that the organisation was in support of the advice of the Attorney-General of the Federation (AGF) and Minister of Justice, Malam Abubakar Malami that the agreement with INTELS be terminated.

Usman said NPA management will proceed on a transitional arrangement to engage another firm.

The INTELS spokesman said several attempts to resolve the TSA issue was rejected by the managing director of NPA.

He recalled that on May 5, INTELS sent a letter to NPA proposing the opening of a jointly-signed account between the company and NPA into which the boat service revenues would be paid. Akinola said the proposal was also rejected by the NPA managing director.

He faulted claims by NPA that the contract was terminated based on the advice of the Attorney-General of the Federation and Minister of Justice.

“At what point are revenues eligible to be paid into the Consolidated Revenue Fund?

“NPA acting on behalf of the Federal Government entered into a profit-sharing agreement with INTELS for 72 per cent of the revenue to go to NPA while 28 per cent is for INTELS.

“The objective interpretation of the Constitution should be that the revenue due to the Federation should be the 72 per cent due to NPA,’’ he said.

Akinola said that NPA could not fault INTELS in the execution of the contract, which was handled most diligently.

According to him, INTELS faithfully implemented the pilotage agency agreement and also substantially boosted government revenue.

“We took the pilotage service from a revenue stream of a few thousand dollars per month to multi-million dollars per month service,’’ Akinola said.

The INTELS spokesman said those who criticised the company’s operation are “either ignorant or mischievous’’ of the company’s monumental achievements and value addition to the Nigerian economy.

He noted the effects of the present development on government revenue, huge investments and several jobs.