The Nigerian government has extended its boat service contract with Intels Nigeria Limited. This move is aimed at preventing revenue leakage and increasing the inflow of foreign exchange into the government’s coffers, a report by Premium Times NG stated.
The government through the Nigerian Ports Authority (NPA) officially granted an extension to the contract following presidential directives and court consent judgment.
The NPA had in September 2020 announced the termination of the boat operation contract, directing all service boat owners and operators to do transactions directly in each port complex of the NPA.
But a Federal High Court in Lagos granted an interim injunction, preventing the termination of Intels’ role as a managing agent in various Pilotage Districts. The injunction was issued in response to a suit filed by Intels and Deep Offshore Service Nigeria Limited, seeking to continue their duties pending the resolution of arbitration proceedings.
After prolonged negotiations and deliberations, the NPA on Thursday announced the extension of the contract through a memo addressed to all shipping companies and signed by the Ports Manager, Lagos Port Complex, Charles Okaga.
In the statement titled ‘Reinstatement of Intels Nigeria Limited as the authority’s service boat operations monitoring provider in the pilotage district’, the NPA said the move aims to bolster revenue generation from Service Boat Operations, aligning with both the agency and federal government’s objectives.
In accordance with the terms outlined in the Managing Agency Agreement, Intels Nigeria Limited has received a directive to promptly resume services. The company is expected to operate as the managing agent for Service Boat operations in the Lagos Pilotage District (LPD).
The new directive urged shipping companies to provide unrestricted access to information on pilotage movements for Intels, in addition to provision of necessary assistance for a seamless commencement of operations.
According to Premium Times NG report, it was gathered that the new resolution was reached against the background of the Onne Port construction deal struck by the NPA and Intels. Those familiar with details of the deal said Intels agreed to construct the port and shore up finances with revenue generated from its boat contract with the NPA.
But trouble started when, in September 2020, the management of the Nigerian Ports Authority (NPA) terminated the boat operation contract being handled by Intels Nigeria Limited, INL. In a marine information notice dated September 1, the Lagos Pilotage District (LPD) of the NPA said the service, hitherto handled by Intels, had been terminated and consequently directed all service boats owners and operators to do transactions directly in each of the Port Complex of the NPA.
The newspaper quoted sources within the NPA informing that the new resolution was reached against the background of the Onne Port construction deal struck by the NPA and Intels. Those familiar with details of the deal said Intels agreed to construct the port and shore up finances with revenue generated from its boat contract with the NPA.
But trouble started when, in September 2020, the management of the Nigerian Ports per Authority (NPA) terminated the boat operation contract being handled by Intels Nigeria Limited, INL. In a marine information notice dated September 1, the Lagos Pilotage District (LPD) of the NPA said the service, hitherto handled by Intels, had been terminated and consequently directed all service boats owners and operators to do transactions directly in each of the Port Complex of the NPA.
Upon assuming power on 29 May, the Bola Tinubu administration assigned officials to look into areas of revenue leakages and the boat contract was listed among strategic areas in which the government has been losing massive revenue, sources said to have informed.
As part of its conflict resolution mechanisms and revenue generation efforts, the government called for negotiation based on prevailing agreements and the boat service contract was extended.
However, details of the court consent judgment remain unclear as of press time Saturday evening.
The new resolution brings fresh insights into the long-running battle between Intels and NPA.
In June 2017, the Nigerian government moved against Intels, which was then partly owned by former Nigerian vice-president, Atiku Abubakar. The company was founded over three decades ago by Gabriele Volpi, an Italian national who also has Nigerian citizenship, and Mr Abubakar was a minority shareholder, according to a report.
President Muhammadu Buhari had in April approved the recommendations of Attorney-General Abubakar Malami, breaking Intels’ near-monopoly in handling oil and gas cargoes in Nigeria.
Source: Premium Times NG
