Intels: NPA confirms payment of $28.1m, awaits alert of $14.5m

Hadiza Bala Usman, Managing Director of the Nigerian Ports Authority (NPA) on Wednesday confirmed receipt of $28.1 million by Integrated Logistics Services Nigeria Limited (Intels).

However, the agency is yet to receive confirmation of payment of an additional sum of $14.5 million from the company.

Usman disclosed this during the public hearing into the cancellation of a ten-year pilotage contract between NPA and Intels, held at the instance of the Adhoc Committee chaired by Pally Iriase.

The revenues were paid through two commercial banks,  while the NPA has commenced collection since November 2017 to January 2018, noting that no money was paid into NPA account for a period from November 2016 to November 2017 from the revenue collected by Intels on behalf of the Federal Government during the period under review.

Usman however noted that the NPA is yet to get details of the period covered by the payment made by Intels so far.

According to her, out of a total sum of $48 million revenue from November 2016 and November 2017 collected by Intels on behalf of the Federal Government, the company retains 28% leaving 72% to be shared between Intels and NPA, at the ratio of 70%-30%.

Sequel to the agreement, the sum of $4 million revenue being paid monthly by Intels, represents 30% of the total revenue.

She however observed that 28% management fee was outrageous and non-compliant with industry practice of between 10% to 18%.

Usman, who stressed the need to revisit the agreement which commenced in 2010 and elapse in year 2020, disclosed that the notice for termination of the contract was based on the legal advice of Minister of Justice and Attorney General of the Federation, dated 27th September, 2016, in line with Article 8(6) of the Act.

According to her, following the apology letter written by the Intels management, NPA wrote a notice letter to the AGF on the resolve of Intels to comply with the remittance of all revenues into the Treasury Single Account (TSA) as from November, 2017.

She further observed that the International Oil Companies (IOCs) who operate within the One and other project sites have applauded the initiative and are willing to comply with the payment into government’s account.

Usman who queried the arbitrary remittance of revenue belonging to the Federal Government, stressed that the ongoing reform was aimed at stopping the impunity and ambiguity of the contract.

She also decried the previous experience, where Intels paid $3 million, which represents 18% of the average revenue to NPA monthly, increased it to $5.6 million, based on the reviewed agreement between both parties, but “largely reduced it to $4 million” in 2016, which is the current revenue being paid to NPA.

In order to address issues relating to the actual revenues accrued from the collections over the past eight years, Usman unveiled plans to conduct assessment of revenue collected, with a view to ascertaining the attendant leakages allegedly created by Intels, adding that notice has been issued to Intels on the steps to be taken.

She explained that the agency is yet to carry out reconciliation of the revenue inflows since Intels resolved to comply with the TSA policy.

The NPA administrator who noted that the agreement will be advertised when the ongoing agreement with Intels ends in year 2020, explained that there are other operators who have the competence to offer similar services in the industry.

She also clarified that the Onne Port contract is owned by NPA, while Intels was granted 25 year concession.

Declaring the public hearing open, Speaker Yakubu Dogara expressed the concerns of the House, over the management of the controversy trailing the appointed agent for monitoring and collection of revenue from service boat operations in the pilotage districts.

Dogara, who was represented by Ado Doguwa, Majority Whip said: “The House wants to use the process of this hearing to acquire relevant information that will enable it amend the existing laws on this subject, in order to plug the loopholes that are exploited to short-change Nigeria.

“The public hearing we are engaged in now is in consonance with the mandate of the House, and also relying on the constitutional powers bestowed on the House by Section 88 of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“The primary intention of the investigation is to determine and examine the process that led to the termination of the contract between the Nigeria Ports Authority (NPA) and INTELs Nigeria Limited. The public hearing will avail us the opportunity of ascertaining whether due process was followed and if all avenues were explored before arriving at the decision by NPA to issue INTELs the notice of termination of the contract.

“The medium of this Public Hearing could be said to be a wider way of consultation, and gathering information that could be helpful in arriving at meaningful recommendations for the consideration of the House.

“It is important to note and assure Nigerians that the House is always set to protect the integrity of the Constitution of the Federal Republic of Nigeria and other extant Laws in regards to all the issues of public interest and good governance of the country,” he said.

In his intervention, Pally Iriase (APC-Edo) and other members of the Ad-hoc Committee, frowned at  Intels, which is the major beneficiary of the motion, for failing to honour the invitation of the Committee.

“From what we are getting here, it means Nigeria is being short-changed. It is very clear that they (Intels) are very comfortable but Nigeria is worse-off,” Iriase noted.

He however assured foreign and local investors of the House resolve to protect investment within Nigerian space, through effective regulatory and legislative frameworks.