The Nigerian Ports Authority (NPA) disclosed a monetary loss totaling $161 million incurred by the Federal Government due to the withdrawal of Integrated Logistics Services Nigeria Limited (INTELS) from pilotage management.
According to a statement released on Sunday by NPA, this loss stemmed from the absence of essential technology to oversee operations.
Join our WhatsApp Channel“The authority took over the service after the agreement expired, but lacking the necessary technology hampered our ability to monitor operations,” stated an NPA spokesperson.
“This deficiency led to a drastic drop in revenue generation, with figures plummeting from $216 million and $209 million in 2014 and 2015 under INTELS to a mere $55.3 million by June 2023.”
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Former Vice President Atiku Abubakar divested his interests in INTELS, further complicating the situation. However, NPA revealed that in an attempt to resolve the dispute between INTELS and the Federal Government, the company waived a debt of over $193 million.
NPA emphasized that the resolution with INTELS was made in the nation’s best interest. Furthermore, in an update, NPA assured the public that extending the service boat operation agreement with INTELS would lead to increased revenue generation.
“The agreement reached will result in significant savings for Nigeria, estimated at $326.9 million,” the NPA highlighted. “The Federal Government stands to earn over $500 million, taking into account the interest waiver, reduced interest rates, extended debt repayment over 15 years, and a commission reduction.”
Breaking down the specifics of the agreement, NPA detailed a $100 million waiver on accrued interest as of July 31, 2023, owed to Deep Offshore Services Limited under the Phase 4B agreement.
Moreover, a further waiver of interest for two years on the outstanding debt under the Phase 4B Agreement, estimated at $93 million, was also negotiated.
Expressing dissatisfaction over the revenue loss, NPA underscored the necessity of clarifying the situation to prevent misinterpretation among stakeholders. The agency reaffirmed its commitment to rectifying the revenue decline and fortifying the nation’s maritime interests.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
