CBN allows INTELS Logistics to transact in foreign, local currencies

Integrated Logistics Services Limited (INTELS), a logistics services provider operating in the Oil and Gas Free Trade Zone in Onne, Port Harcourt, said weekend that the policy of the Central Bank of Nigeria (CBN) allows it to trade in both foreign and local currencies.

This thereby discredits reports alleging that it was violating CBN’s foreign currency restriction policy by collecting payment from users of its services in foreign currency.

Isidore Sambol, head, INTELS public relations unit, said in a statement that as a law abiding firm, the company had been operating within the ambit of the law and that CBN exempted companies operating within Free Trade Zones, Maritime and Aviation from being affected by the ‘Currency Substitution and Dollarisation of the Nigerian Economy’ policy.

CBN in a circular number BSD/DIR/GEN/LAB/08/024, dated May 21, 2015, and sent to all commercial banks, made it clear that the under listed revenue generating agencies of government and operators, which include the Federal Inland Revenue Service (FIRS), Nigeria Ports Authority (NPA), Nigeria Maritime Administration and Safety Agency (NIMASA), Federal Airport Authority of Nigeria (FAAN), Nigeria Airspace Management Authority (NAMA) are permitted by law to allow payments in foreign currencies.

Tokunbo Martins, director, banking supervision of the CBN, who signed the circular, listed other exempted operators to include: Nigeria Shippers Council; operators in the oil and gas, including oil service companies; operators in the maritime and aviation industries; licensed operators in the Export Processing and Free Trade Zones and any other agency that may be prescribed by CBN from time to time.

While reacting to the allegations, Victor Alabo, managing director, Oil and Gas Free Zones Authority (OGFZA), described the report as malicious and intended to demean the credibility of INTELS, which is part of the Orlean Invest Group.

The company has not only remained one of the law abiding companies operating within the nation’s Free Zones, but has also contributed immensely to the growth and development of the nation’s economy in the area of job creation to at least 22,500 direct staff and 50,000 indirect staff, and attracting foreign direct investments to the Onne Oil and Gas Free Zone worth millions of dollars annually.

“To set the record straight, INTELS is exempted from the foreign currency restriction from three different categories that include being an operator in the oil and gas and as an oil service company; operator in the maritime industry and a licensed operator in the Export Processing and Free Trade Zone, therefore people should cease from discrediting such a company,” the OGFZA boss said.

According to him, the Federal Government in its wisdom has realised that oil and gas is an international business, of which the collection of foreign currency cannot be avoided, even as he added that INTELS also collects the naira equivalent of the foreign currency from clients that wish to pay in naira.

Sambol confirmed: “If our clients want to pay in naira, we collect because we also do business transactions in naira and have not compelled any of our clients to pay in foreign currency.”