FACTS EMERGE OVER RESTORATION OF INTELS BOAT SERVICE CONTRACT AT PORTS

"Intels Nigeria Limited, in accordance with the Managing Agency Agreement, has received a directive to promptly resume services as the managing agent for Service Boat operations in the Lagos Pilotage District (LPD)." 

"The NPA urges shipping companies to provide unrestricted access to information on pilotage movements for Intels, ensuring a seamless commencement of operations."

In a significant development aimed at curbing revenue leakage and enhancing foreign exchange inflow, the Nigerian government has granted an extension to the boat service contract with Intels Nigeria Limited. The decision, based on presidential directives and a court consent judgment, reverses the Nigerian Ports Authority’s (NPA) earlier termination of the contract in September 2020.

Following a Federal High Court’s interim injunction preventing the termination, Intels and Deep Offshore Service Nigeria Limited pursued legal avenues to continue their roles as managing agents in various Pilotage Districts. After prolonged negotiations, the NPA officially announced the extension through a memo signed by Charles Okaga, Ports Manager, Lagos Port Complex.

The memo, titled ‘Reinstatement of Intels Nigeria Limited as the authority’s service boat operations monitoring provider in the pilotage district,’ emphasized the goal of bolstering revenue generation from Service Boat Operations in alignment with both the agency and federal government’s objectives.

Intels Nigeria Limited, in accordance with the Managing Agency Agreement, has received a directive to promptly resume services as the managing agent for Service Boat operations in the Lagos Pilotage District (LPD). The NPA urges shipping companies to provide unrestricted access to information on pilotage movements for Intels, ensuring a seamless commencement of operations.

Sources within the NPA reveal that the decision to rehire Intels is linked to a construction deal for the Onne Port. Insiders suggest that Intels agreed to construct the port, financing the project with revenue generated from the boat contract. The termination of the contract in 2020 resulted in significant revenue losses for the government, prompting a reevaluation of the situation by the current administration led by President Bola Tinubu.

Upon assuming power, the Tinubu administration identified revenue leakages, with the boat contract being a strategic area of massive revenue loss. The government, as part of conflict resolution and revenue generation efforts, opted for negotiations based on existing agreements, leading to the extension of the boat service contract.

Details of the court consent judgment remain unclear as of press time, providing fresh insights into the longstanding battle between Intels and the NPA. The history of the conflict, dating back to 2017, involves regulatory actions against Intels, a company once partially owned by former Nigerian vice-president, Atiku Abubakar.

Despite a procurement process initiated by the NPA to hire new contractors after terminating Intels’ contract in 2017, the decision to rehire Intels now suggests a departure from that process. Government insiders indicate that the Bureau of Public Procurement recommended four contractors, but the procurement process did not conclude.

With this latest development, the government aims to revive revenue and foreign exchange inflow, signaling a strategic move in its economic objectives.

Except for caption, story is courtesy of solakuti.com