The Nation Newspaper

Tag: INTELS

  • INTELS offers scholarship, jobs to 66 physically challenged persons

    Oil and gas logistics giant INTELS Nigeria Limited has taken its community support a notch higher by offering full scholarships to no fewer than 66 physically challenged persons.

    The scholarship scheme, which was set up in 2003 to assist persons with physical disabilities including polio, covers primary, secondary and tertiary education.

    Some of the beneficiaries enjoyed the scholarship from primary school through to tertiary education, attaining professional qualifications in various fields of endeavours, including Economics and Law, among others.

    The beneficiaries also have the opportunity of working at INTELS after completing their education.

    One of the beneficiaries, Uchechukwu Nwafor, who is an Economics graduate of the University of Port Harcourt, said: “words cannot capture the good works INTELS is doing.

    “INTELS has changed my life for good. What INTELS is doing cannot be quantified. The company has been able to make me achieve the desires of my heart. They have empowered me and made me independent. Thanks to INTELS I am not on the road begging for money or food to eat. No company in Nigeria has ever done what INTELS has done for the physically challenged.

  • Reps give Intels 24- hour ultimatum to remit FG’s revenue to TSA

    Reps give Intels 24- hour ultimatum to remit FG’s revenue to TSA

    The House of Representatives on Wednesday condemned Intels Nigeria Limited for undermining the Treasury Single Account (TSA) by failing to remit the Federal Government’s revenue at its disposal as and when due.

    Intels was alleged to have refused to pay into TSA government share of pilotage service contract it carried out on behalf of the Nigerian Ports Authority (NPA) for 24 months.

    Consequently, Intels was mandated to provide full details of the amount owed federal government within 24 hours.

    The lawmakers described the company’s action as unacceptable and have directed its management to immediately remit the multi-million dollar revenue accrued from pilotage service contract into the TSA.

    The House ad hoc Committee probing non-compliance with the TSA also directed Intels to pay interests accrued on the fund since November 2016 without further delay.

     

  • INTELS wins NSC’s CSR award

    INTELS wins NSC’s CSR award

    Nigeria’s oil and gas logistics giant, INTELS Nigeria Limited has been conferred with the award of the “Most Outstanding Terminal Operator in Corporate Social Responsibility” by the Nigerian Shippers’ Council (NSC).

    The award, which was conferred on Intels during the NSC’s Stakeholders Appreciation Night held in Lagos, was in appreciation of the company’s effort at uplifting individuals, families and the host communities through its CSR.

    Executive Secretary of NSC, Hassan Bello also commended INTELS for its huge investment and commitment to ports development in the country.

    This is the second year in a row that NSC is conferring its award on INTELS.

    Intels is a core investor in the concession of major oil and gas terminals in Nigeria and has consistently raised the living standards of its host communities in Onne, Warri and Calabar, in Cross River State.

    Over the past 10 years, INTELS has spent more than N12 billion on CSR in empowering and supporting host communities in various areas of the Niger Delta region.

    The company recently trained and empowered no fewer than 300 women in the Niger Delta region through its innovative Women Empowerment Programme Scheme Synergy (WEPSS).

    WEPSS was instituted to enable the women become leaders and to also promote a positive and strong image for Nigerian women.

    In recognition of the company’s support, the Paramount Ruler of Onne Clan in Rivers State, King John Dennis Osaronu, recently commended the company, describing it as “a company Nigerians must be proud of”.

    Going down memory lane, the Royal Father, who was a member of the Rivers State House of Assembly during the the Second Republic, said, “Thirty years ago, Onne was a virgin forest. Onne as you see today was not what it was about 25 to 30 years ago. Even the port area was forest. We used to go there to hunt for monkeys and catch crabs – we called it crab land until Intels came in.

    “Before Intels came, the area was abandoned right from the time of Umaru Dikko as the Minister of Transport. Since Intels came into our community, we have got so many changes and things are going on so well with us.”

    He further stated that the company has provided lasting support to children, men and women of the community.

    “They have built roads and provided us medical services. Recently they built us a 10-kilometre tarred road. They have built for us three schools and given us drainage system for the community,” King Osaronu said.

    According to the Monarch, Intels also built a modern ultra-modern market constructed at the cost of N1billion and provided solar street lights for the community.

    INTELS’ Women Empowerment Programme Synergy Scheme (WEPSS), where women from Rivers State are trained for free on fashion design and sewing, has particularly commendation.

     

     

  • Gov revokes residence permits of expatriates in Intels, others

    The Nigerian Immigration Service (NIS) said it has revoked the residence permits of expatriate staff in about six Nigerian companies, including Intels Nigeria Limited.

    No reason was given for the latest development.

    NIS in a statement yesterday by its Public Relations Officer, Sunday James, said the  Comptroller-General NIS, Muhammad Babandede, gave the directive.

    It reads: “The Comptroller General of Immigration Service, Muhammad Babandede, hereby revokes the Residence Permits of the Expatriate staff of the under listed companies, in the exercise of the powers vested on him in section 39, subsection 1 of Immigration Act 2015 and section 5, subsection 5 of the Immigration Regulation 2017 after withdrawal of the operational licenses of the under mentioned companies by the Oil and Gas Free Zones Authority.”

    The statement listed the other companies to include PRODECO International Limited, West Africa Machinery Services Limited., Net Global System International Limited., MGM Logistics Solutions Limited., ORIEAN Investment Limited.

    The directive required that the expatriate staff of the affected companies should leave Nigeria not later than 30th November, 2017.

  • Between OGFZA and INTELS

    The ongoing travails of Integrated Logistics Services (INTELS) Nigeria Limited dramatize the fact that the league of mediocre enjoys fighting top-notch achievers for unjustifiable reasons.  The newest actuator of these growth-retarding travails is the Oil and Gas Free Zones Authority (OGFZA). OGFZA for hollow excuses has decided to wage a war of attrition against INTELS.

    To be candid, it is not surprising that in an environment governed by “pull-him-down syndrome”, INTELS is now a serially victim of fiendish policy attacks. The surprising element is the eagerness of public institutions to play the ignoble role of architects of economic misfortunes. OGFZA is aware that if INTELS prestigious niche in logistics service is dislocated, the lofty aspirations of the Nigerian Oil and Gas Industry Content Development Act, 2010 will be jeopardized.  This spells economic woes for a nation in the throes of change.

    By this action, the economic fortunes of INTELS are in jeopardy. Also, over 15,000 Nigerians and their families are likely to experience the dehumanizing wretchedness of income volatility occasioned by joblessness. Sadly, this might happen when Nigeria is still recovering from economic crunch, and lacks social security for her teeming citizenry. The financial sector is not immune to the overshadowing grimness, because INTELS secured loan from many banks to develop critical infrastructure in some ports.

    This refusal to renew its license is mainly informed by INTELS chivalrous protestation of unjustifiable charges. INTELS perceives the land lease/sublease registration charge by the free zone regulator as an extortionist feint. According to INTELS, it is ethically and legally senseless to pay the lease/sublease registration charge to OGFZA, sincethe land it occupies was leased from the Nigerian Ports Authority (NPA).

    In the prevailing global economic order, experts in legitimation and de-legitimation of companies rank the connect-and-collaborate model of leadership above command and control tactics. Said differently, sapient regulators do not operate without viable consensus-formation mechanism and smart conflict resolution protocols.

    The aspiration of OGFZA to be a specimen of bureaucratic excellence is undermined by its inept handling of INTELS’ complaints. It suggests a patent lack of collaborative mechanism. Hence, when it noticed the crisis of command thrown up by INTELS noncompliance, it resorted to coercive power. The soft power of dialogue could have ended this impasse, if bureaucratic autocracy and arrogance of power did not cause a failure of common sense.

    It is an expression of civility for power to listen to truth, to dissent, to complaint, to grievance, when key economic actors contest the legitimacy of policy-prescribed actions. The credibility of any regulator is endangered, when it resorts to intimidation and negative representation of the organizational character of companies. OGFZA’s characterization of INTELS as an institutional free rider that evades charges and flouts prescribed norms smacks of ethical deficit. For reasons like this, it is clear why when many Nigerians consider the operational ethics of public agencies; they do not see enthralling panoply of civility to draw inspiration from.

    OGFZA’s magisterial conclusion about “unauthorized” disposal of INTELS assets even before the commencement of the proposed audit is premature and redolent of bad faith. If the audit is eventually conducted, and INTELS is found wanting, it will be easier to contest its credibility, and tough to execute its recommended sanctions. Already INTELS has disclosed its readiness to sue OGFZA for allegedly destroying its image. It is unclear what strategic national interest OGFZA seeks to achieve by stimulating this vortex of scandal.

    Evidently, laudable ideas for sustainable development cannot be translated to reality, if the ethical foundation of corporate governance is not solidified, and a culture of zero tolerance for contraventions entrenched. This implies that the consequences of infringements should be nondiscriminatory. If INTELS has erred, it should suffer the consequences without undue media trial, and toxic diatribes.

    To promote sustainable and inclusive economic growth, government must make the business environment friendlier; reduce risk of business failures, and enhance bureaucratic competences. Competent bureaucracies do not allow political sentiments to dictate their actions. In fact, they are immune to partisan politics.

    Desperate political agents feel vulnerable without annexing bureaucratic institutions. So, they employ mercurially dictatorial antics and inducement to turn public institutions to outposts of their political groups. When they succeed, ethics is the first victim. Arbitrariness becomes a rule of conduct. Transitions to doom begin with arbitrariness. The converse is also true. Adherence to law opens amazing chapters of economic bloom.

    Before the 2015 elections, Nigerians observed with utter dismay how the then ruling or ruining elite through its bureaucratic allies  made frantic efforts to emasculate President Buhari. They almost made him unelectable, claiming he lacked the requisite educational credentials to vie for the presidency. Mysteriously his certificate disappeared from military archives. The point to note is bureaucratic malfeasance is becoming a defining element of pre-election conspiratorial gambits.

    Public institutions should be mindful of the season we are in. The 2019 election is about 14 months away. Nigerians tend to view issues like this through political prisms. Particularly, since Atiku Abubakar a co-founder of INTELS is a visible, viable, and vocal political actor gunning for the presidency.

    Some commentators claim that certain political agents are fearful of Atiku Abubakar. They nurse the fear that his political structure may have significant influence on the outcomes of 2019 elections. This fear is perennial; it is a galvanizer of negative political and economic actions. Some of the actions are simplistic rehash of Obasanjo’s crafty moves in 2007 to confine Atiku to a political black hole.

    In fact, Obasanjo’s actions had historical antecedent. The credit for political emasculation by inflicting economic hemorrhage goes to late General Sani Abacha. During his lack-lustre autocratic rule, he seized Nigeria Container Services (NICOTES), the progenitor of INTELS. The seizure of NICOTES was occasioned by the pro-democratic agitations of arrowheads of Peoples Democratic Movement (PDM), notably, Shehu Yar’Adua, and Atiku Abubakar.

    The vestiges of neo-patrimonial governance of military autocracy are visible in Nigeria’s political landscape. They influence political antics.  Some of its distinctive elements like subjective ethics, cronyism, imposition of candidates, and personal rule would influence backstage activities before and during 2019 elections. In a way, Nigeria’s dismal practice of democracy could be attributed to the hangovers of military politics, which have attenuated society’s conscience.

    The popularization of subjective ethics by agencies of government must be seen as a prelude to social instability and economic doom.  Subjectivism lacks merit outside the ambits of private endeavors. Therefore, it should not dictate the trajectory of public policies.  At the cusps of transformation, Nigeria gets overwhelmed by anemia, because, she is a seeming alien to objective ethics.

    Statements credited to the Managing Director of OGFZA, Umana Okon Umana, tacitly suggest pendulous swings. It is puzzling why OGFZA swings from the moral high ground of providing policy solutions legitimized by participation, flexibility, horizontality, and inclusiveness to the pedestrian plane of brewer of controversies. Attempts to rationalize why they have held INTELS by the jugular are unhelpful to their reputation.

    It seems needful to remind the OGFZA boss that the single overriding communication objective (SOCO) of executive interventions in crisis situation is to offer clarity. It is not a mark of sapience for chief executive officers to speak in order to win arguments, particularly, by lacing their press statements with sophomoric sophism.

    Tensions and disputes are inevitable in terrains where heterogeneity of interests abounds. They have the potential to generate innovative ideas for the good of all. Regrettably, simple issues that could be addressed by healthy institutional interactions were allowed to snowball, acquire anti-progress tendencies, and drive a wedge between the two organizations.  The diminution of institutional resources caused by this politically motivated firework does not in any way open new frontiers of economic development for Nigeria. Rather, it may narrow the spectrum for 15,000 Nigerian families to savour the bliss of unmitigated economic prosperity.

     

    • Ibie is a Lagos-based public commentator.

  • Many unresolved crisis of Intels

    There seems to be no end in sight for the management of Intels Nigeria Limited and 16 of its affiliate companies presently locked in battle with some government agencies over alleged infractions which border on economic sabotage. Ibrahim Apekhade Yusuf, in this report, examines the issues

    This is certainly not the best of times for the management of Intels Nigeria Limited (Intels). And the reason for this is not far to seek: the company, if you may, is fighting perhaps, one of its toughest battles ever, the outcome of which may totally consume it at the end.

    Crux of the matter

    At issue is that Intels’ boats pilotage monitoring and supervision agreement signed since August 2010 which the Nigerian Ports Authority (NPA) revoked on behalf of the federal government may have further exacerbated the crisis which has dogged the contract since the beginning of this year.

    The agreement empowers Intels to receive revenue on behalf of the government and retain 28 per cent which includes a 10 per cent withholding tax but excluding five percent value-added tax before remitting the balance of 72 per cent which is the federal government share to the Consolidated Account of the country.

    Amongst the six key aims of the contract, which has a duration of 10 years, was for Intels to collect all revenues for service boat operations and other relevant dues invoiced against vessel owners.

    The missing clause then left Intels with the discretionary powers to give NPA any share it found convenience.

    This allowed Intels to give NPA an average of 18 percent of the 72 per cent from 2013 to early 2014.

    By mid-2014, Intels began paying 33 per cent of the 72 per cent to NPA, following demands by ports officials that the agency needed to improve its liquidity position, documents showed.

    The company paid NPA 29.59 per cent (or $62,093,087) and 23.79 (or $40,047,458) of the 72 per cent of collected revenues in 2015 and 2016, respectively, documents showed.

    However, NPA had gone ahead to revoke the license. Thus the ensuing argument had been on the appropriateness or otherwise of the nullification of the contract and its implications for Intels, the workers implementing the contract, the maritime sector and the economy as a whole.

    Of course, NPA had justified the revocation of the contract on Intels’ violation of the provision of the Treasury Single Account (TSA) which mandates that all revenues collected on behalf of government should be deposited into that account while it said that the agreement also contravenes sections 80(1), 162(1) and (10) of the constitution of the Federal Republic of Nigeria.

    In a June 28, 2016 letter, for instance, the maritime agency warned Intels that the firm was violating extant concession regulations by insisting on collecting revenues into its bank accounts rather than the NPA’s TSA account with the CBN.

    Officials also instructed Intels to start computing identification and payment profile of service boats individually, rather than the wholesale listing of all service boats under the name of Intels. This would allow each service boat operator pay into NPA’s transit accounts in local banks for onward remittance to the CBN, it reasoned.

    According to NPA Managing Director, Hadiza Usman, the port regulator was forced to terminate the contract for the fact that all efforts made by the management of the Authority to ensure that Intels complies with the TSA demands failed.

    But Intels has, however, said that it was not given adequate opportunity to negotiate before the action was taken just as it argued the TSA is a very recent development which was not part of the pilotage agreement when it was signed just as it insisted that it was illegal for the NPA to have unilaterally decided to revoke the contract without recourse to it, the partner, as well as the provisions for exiting the agreement.

    Mixed reactions over revocation of Intels’ contract

    Expectedly, mixed reactions have greeted the Intels’ saga. While many commended the NPA Boss Director for her insistence on due diligence, protecting the interest of government and the economy, others have also made a case for the need for the revocation of the contract to be reversed because of the efficient way Intels has executed it, among other reasons.

    Some pundits had observed that NPA reportedly cancelled the agreement for political reason – because of the former Vice President, Atiku Abubakar, who is a major shareholder of Intels with a view to undermine his business ahead of 2019 election, which Atiku has since expressed his intention to run for the highest political office.

    According to this school of thought, as a politically exposed person (PEP), Atiku may need to understand that doing battle with the government is usually not minced meat. They readily cite the experience of the former governor of Abia State, Dr. Orji Kalu, who was forced by the then President Obasanjo to relocate his airline, Slok Air, and other related business out of the country following his disagreement with the government at the time.

    Apparently miffed by this development, the founder and chairman of the company, Mr Gabrieli Volipi, an Italian, had specifically pledged to ensure that the company complies with the directive of government and transfer all the revenue from the pilotage project to the TSA as a law-abiding entity, as well as cooperate with the NPA in the development of Nigeria’s maritime sector and continue its development of the Badagry Deep seaport.

    Others sympathetic to Intels’ cause had advised that since the company has decided to comply with the provision of the TSA, the major reason why NPA is believed to have nullified the contract in the first place, then it behoves the latter to review its decision, get back to the discussion table with its partner on the necessary modalities to abide with the policy so that the contract can continue in earnest.

    According to these sympathisers, it is self-evident that Intels took the pilotage service from a revenue stream of a few thousand dollars per month to a multi-million dollars per month project. Little wonder it had to borrow $1.4 billion (N428.4 billion) from banks to execute the agreement with the understanding that the debt would be offset from monies realised from the pilotage services paid directly to the banks.

    Those who are pro-Intels have also argued that the government’s decision on the contract, if not reviewed, will send a wrong signal to foreign investors who want to invest or those who would have wanted to do more than they have done because they fear that government can wake up one day to terminate their contract, the way it did the agreement with Intels without respect for its provisions.

    They also contend that the company’s track record as a good corporate entity in the economy should also be considered, a development that has informed its decision to invest in the multi billionaire Badagry Deep Seaport project which has the capacity to end the traffic congestion at the Lagos seaport access road and which execution is of tremendous benefits to the maritime sector, the economy of Lagos and that of the whole country.

    More troubles for Intels

    Intels’ many troubles notwithstanding, the company is also been confronted by the management of the Oil and Gas Free Zones Authority (OGFZA) which has ordered a comprehensive compliance audit of its operations in the last 10 years.

    At separate correspondences by the Authority, copies of which were obtained by our correspondent, the Authority said it appointed a team of auditors to examine Intels’ books.

    The audit is over the company’s alleged serial violation of the laws and regulations governing operations in the free zone.

    Intels is being accused of failing to submit its records, warehouses and equipment imported under the zero duty regime of the free zone for inspection in compliance with the OGFZA Act.

    In a letter to Intels Managing Director, OGFZA drew his attention to the alleged breaches.

    The letter, signed by OGFZA Managing Director, Mr Umana Okon Umana, accused Intels and her 16 affiliate companies of having “transferred and sold off their assets” imported into the free zone under the zero duty regime, which only free zone companies are entitled to.

    In the letter, which reads in part, OGFZA boss said the company allegedly sold its assets “without the approval and consent of the Authority,” in contravention of Section 12(6)(a-b) of the Oil and Gas Export Free Zone Act.

    The section states: “Where any goods which are dutiable on entry into the Customs territory are sent from the Export Free Zone into the Customs territory, the good shall be subject to the provision of the Customs, Excise tariff, etc. (Consolidation) Act and any regulations made thereunder, and if the goods are intended to be disposed of in the Customs territory, shall not be removed from the Export Free Zone unless— a) the consent of the Authority has been obtained; and b) the relevant Customs authorities are satisfied that all imports restrictions relevant thereto have been complied with and all duties payable in connection with the importation thereof into Customs territory have been paid.”

    According to Umana, on March 20, the Authority issued a new standard operating procedure (SOP) to enforce the laws and regulations in the free zone.

    Two days later, 16 affiliates of Intels filed applications for de-registration from the free zone.

    It was learnt that the revised SOP made it mandatory that all requests for transfer of cargoes from the free zone had to be made to the Authority in keeping with the law, to protect the interest of government and other stakeholders.

    Following Intels’ affiliate’s applications, OGFZA informed the companies that in line with section 15 (1) of Act, they would have to be audited.

    The Authority said the audit is to ensure that their assets were fully accounted for and that appropriate revenue payable to the federal government is remitted when the assets are disposed of.

    In keeping with section 15(1)(a-c) of the Act, a joint team of OGFZA and Nigeria Customs Service was set up to visit the companies’ premises to inspect their records and equipment ahead of the de-registration.

    Umana further alleged that the assets that may have been disposed of by Intels and its affiliate companies, including Prodeco, add up to 3,000 project vehicles, trucks, cranes, forklifts and a large number of assorted construction equipment.

    In the letter, OGFZA also drew the attention of Intels to the fact that its Free Zone operating licence, which had expired since 31 December 2016, had not been renewed.

    Intels’ rebuttal

    Following the OGFZA allegations, Intels, through its legal adviser, Barr. Mike Ekpelle, has threatened legal action against Umana, saying he levelled “false and malicious allegations against the company and its management which are injurious to its business interests, as well as the reputation of INL.”

    In the letter, which read in part, Intels said: “We have no doubt that as these are deliberate actions, you are well aware of the consequences as these are clearly crude, irresponsible and off-limits. At the appropriate time, we will initiate necessary legal measures to ventilate this grievance.”

    In a letter titled ‘Re: Various Matters in Contention between Oil & Gas Free Zone Authority (OGFZA) and Intels Nigeria Limited,’ Intels listed some issues of contention between INL and OGFZA, which it said Umana capitalised on to disparage the reputation of the company.

    Intels listed some of the contentious issues to include the refusal of OGFZA to renew the 2017 Operating License for Intels Nigeria Limited; the imposition of land charges by OGFZA; nullification of INL’s Industry Wide Standard Tariff (IWST) and other port-related charges by OGFZA.

    Intels also frowned at what it called Umana’s penchant for conveying messages to government agencies and clients injurious to its business interest and reputation; non-payment for Intels’ premises occupied by OGFZA at Onne and Heliconia Park Estate and the refusal of OGFZA to renew the residence permit and re-designation of INL expatriate employees in the Onne Free Zone.

    “As you are aware, we have so far engaged you in discussions with a view to resolving the matters amicably, in line with our conviction that a harmonious working relationship will be of mutual benefit to our two organisations and will be in the overall interest of both parties. However, in view of your persistent engagement in actions deliberately aimed at undermining our business, as well as tarnishing our hard-earned reputation, it has now become imperative to formally address the various issues on both the law and facts with the hope that you will be better guided to retrace your ill-advised actions,” the company said.

    On OGFZA’s refusal to renew the 2017 Operating Licence of Intels Nigeria Limited, the company states: “OGFZA has refused to release INL licence for 2017 on the ground that INL has to pay all charges and fees demanded by the OGFZA notwithstanding that INL has paid in full the renewal fee for the licence. The other fees in question relate to new free zone tariffs on land charges imposed by the Free Zone (Tariffs & Other Charges) INL has raised some issues concerning the land charges (which are further enumerated hereunder) with the result that the claim by the OGFZA on INL for those charges are presently being disputed.

    Intels said OGFZA’s view that INL has not complied with Regulation 35(1) (b) (“payment of any outstanding sum due to the Authority”) and is therefore not entitled to have its licence renewed, is a grave error, insisting that OGFZA should issue INL its licence for 2017.

    On the land charges imposed by OGFZA, Intels maintained that INL is not liable to pay the land charges levied on it by OGFZA, pointing out that the premises it occupies in the ports were granted by the Nigerian Ports Authority (NPA); the statutory/legal owner of the land on which our operation is situate. It said OGFZA has no legal authority to administer or manage land vested in the NPA in any manner whatsoever. “OGFZA cannot levy any charges over NPA land, and not having any interest over the land, it cannot register third party interests or transactions over the land.”

    As the battle rages on, it remains to be seen how this matter between Intels and government will be resolved.

  • INTELS and drama of ‘cannibal’ politics

    Keyhole views of the mass hysteria generated by the termination of the pilotage contract between Integrated Logistics Services (INTELS) Nigeria Limited, and the Nigerian Ports Authority (NPA) make it appear as a mere politicization of policy issues. However, a parallax view shows it is a drama of cannibalistic politics. This claim is best appreciated against the backdrop of the alleged role of the management of NPA.  According to INTELS, the NPA deliberately frustrated attempts to address the issues raised by the introduction of the TSA in the execution of its pilotage agency agreement.

    Some public commentators are strongly advancing the notion that the political ambition of former Vice President of Nigeria, and ex-presidential aspirant of the ruling All Progressives Congress (APC), Atiku Abubakar (GCON), who is a co-founder of INTELS is the root cause of the ongoing debacle.  Worrisomely, there are no evidences that decisively relegate this popular view to counterfactual realm of reality. One thing is evident; its popularity shows that many Nigerians think instruments of state are often used to achieve malevolent political and economic goals.

    The termination of the pilotage contract between INTELS Nigeria Limited, and NPA presents grave security concerns. It could fuel social anomie in the Niger Delta region. It may spur restive youths to engage in violent economic crimes, when they become jobless. This point was succinctly underscored by Niger Delta youths. Recently, under the auspice of Niger Delta Youths Coalition (NDYC), they appealed to the federal government to rethink its directive to terminate the agreement. In a similar fashion, the Ijaw Youth Council Worldwide (IYC) has asked for a peaceful resolution of the debacle. The spokesman of the group, Daniel Dasimaka, notes: “We are calling on the management of NPA and the federal government to rethink their decision to give Intels Nigeria Limited, three months to round up and hand over the pilotage services to the NPA. As of today, thanks to Intels, the Onne Port is about the only port in Nigeria outside Lagos that is viable, thus, any attempt to stifle it is considered an attempt to cripple the port.”

    This contract termination without due consultation to resolve the disputes arising from the implementation of TSA policy is antithetic to Nigeria’s quest to foster economic development through foreign direct investment. Economic victimization of political actors vying for public offices does not only narrow the orbit of participation, it makes a mockery of economic development plans. It also makes the business environment inordinately hostile, gravely infantilizes public institutions, and erodes the confidence of local and foreign investors.

    The urgent need of the moment is public-private sector partnership for economic revamping, partnership that would create jobs. The possibility of the agreement reversal to plunge 15,000 Nigerian families to the morass of destitution has inspired the House of Representatives, Maritime Workers Union of Nigeria (MWUN), the Maritime Energy Media Practitioners of Nigeria (MEMPON), and a broad consortium of stakeholders in the sector to denounce it in unison.

    The President-General, Maritime Workers’ Union of Nigeria (MWUN), Adewale Adeyanju, rightly enjoined the federal government to “avoid anything that will send wrong signals to investors that Nigeria’s environment is not safe and conducive for business.”  Furthermore, he noted that: “Most of these employees are Nigerians with families and responsibilities. We are therefore, worried that if this issue is not resolved amicably, their jobs could be on the line. The socio-economic implications of most of them losing their jobs in a volatile area like Rivers State can be better imagined than experienced,”

    The ethics of citizen-centred politics proscribes anything that can undermine people’s right to flourish economically. There is a human cost to this raging subterranean political battle. If the antics to bury INTELS succeed, inadvertently, it would bury the happiness and dreams of countless Nigerian families. The essence of politics is self-defeating, if it thwarts the socioeconomic well-being of citizens.  Destroying people’s means of livelihood, because of intra-elite squabbles is a relapse to Stone Age morality.

    Expecting elephants to fly seems more plausible than expecting politicians to fight ethically. Campaigns that heralded recent elections and referenda around the world, Nigeria’s 2015 election included were festivals of shame. In telling manners, they demonstrated how lust for power turns men into political cannibals, and deluded them into thinking that political cannibalism is essential to human flourishing, moral renewal, national transformation, and cultural revivalism.

    As 2019 approaches, the likelihood of economic disruption and political parricides becoming commonplace is very high.  It seems that INTELS ordeal is a prelude.   Already, the political elite are shifting allegiance, and secretly encoding their modus   operandi. Shortly,   this might ignite a contagion of betrayal and gruesome exploitation. This poses a question: Must the quest for political supremacy be debased to the low level of dog-eat-dog?

    Sadly, some men of conscience would say yes. For they have become staunch defenders of this retrograde practice that mainly fans the flames of primitivism. The only reason why some of them have not manifestly lost their equanimity of mind is their tendency to rationalize that they are “savage” for a noble cause.  It assuages the pang of their conscience.

    The amazing growth of INTELS from a container office at Apapa Port, Lagos is a glowing tribute to the tenacity and resourcefulness of the Nigerian spirit. Its incremental yet astounding growth right of over 30 years shows that clarity of vision is an essential growth incentive. It negates the notion that Nigeria’s business environment is hostile to long term investment.

    As Nigeria seeks to position herself at the front end of knowledge-driven service economy, companies like INTELS should be showcased as model of business success.  As Hon. Hassan Saleh (Benue, PDP) rightly noted “it is saddening that an indigenous firm is undergoing such disdainful treatment.”  He also noted that it is puzzling that “the relevant authorities failed to renegotiate the terms of the contract before terminating it.”

    If there is any reason for optimism, it is the fact that history shows that INTELS is not unacquainted with the perils of cannibalistic politics. During the Abacha era, it suffered untold economic hardship.  The pro-democratic crusader, late Shehu Yar’Adua, was a director in the company, which was known as Nigeria Container Services (NICOTES). When Shehu Yar’Adua demanded that General Sani Abacha should announce a date of restoration of democratic rule, NICOTES became a victim of the machinations of state actors.

    Atiku Abubakar’s refusal to disassociate from Shehu Yar’Adua made the regime to seize the company, and render it almost comatose. Atiku Abubakar and his allies were unlawfully dismissed from the board. However, in 1998, General Abdusalami Abubakar returned NICOTES to her legal owners, then it was renamed, INTELS.

    This historical parallel has deluded some public commentator into thinking that President Buhari is a moral equivalent of Abacha. This is most untrue and uncharitable. His illustrious pedigree and record of altruistic services put him in an echelon of nobility that Abacha could not aspire to. In fact, ethical prudence is a lodestar of Buhari’s enterprising quest to provide good governance.

    Those pigeonholing Buhari into Abacha’s moral category should desist from doing so. They have failed to factor in the roles of political zealots that inadvertently inflict reputational harm on their heroes. The tragedians who scripted this drama should hearken to the voices of reason and history. They should toss the script to the trash can of history, at least, for the unblemished moral honors of President Buhari.

    They should consider the fact that the logical outworking of the doctrine of political cannibalism is dreadful.  It exudes the possibility to push Nigeria to the backwaters of civilization. If unchecked, it could destroy the spiritual, moral, and material building blocks of a thriving economy. Retrogression is foreseeable when vendetta animates economic regulators.

     

    • Ibie is a Lagos-based public commentator.

     

  • Many unresolved crisis of Intels

    Many unresolved crisis of Intels

    There seems to be no end in sight for the management of Intels Nigeria Limited and 16 of its affiliate companies presently locked in battle with some government agencies over alleged infractions which border on economic sabotage. Ibrahim Apekhade Yusuf, in this report, examines the issues

    This is certainly not the best of times for the management of Intels Nigeria Limited (Intels). And the reason for this is not far to seek: The company, if you may, is fighting perhaps, one of its toughest battles ever, the outcome of which may totally consume it at the end.

    Crux of the matter

    At issue is that Intels’ boats pilotage monitoring and supervision agreement signed since August 2010 which the Nigerian Ports Authority (NPA) revoked on behalf of the federal government may have further exacerbated the crisis which has dogged the contract since the beginning of this year.

    The agreement empowers Intels to receive revenue on behalf of the government and retain 28 per cent which includes a 10 per cent withholding tax but excluding five percent value-added tax before remitting the balance of 72 per cent which is the federal government share to the Consolidated Account of the country.

    Amongst the six key aims of the contract, which has a duration of 10 years, was for Intels to collect all revenues for service boat operations and other relevant dues invoiced against vessel owners.

    The missing clause then left Intels with the discretionary powers to give NPA any share it found convenience.

    This allowed Intels to give NPA an average of 18 percent of the 72 per cent from 2013 to early 2014.

    By mid-2014, Intels began paying 33 per cent of the 72 per cent to NPA, following demands by ports officials that the agency needed to improve its liquidity position, documents showed.

    The company paid NPA 29.59 per cent (or $62,093,087) and 23.79 (or $40,047,458) of the 72 per cent of collected revenues in 2015 and 2016, respectively, documents showed.

    However, NPA had gone ahead to revoke the license. Thus the ensuing argument had been on the appropriateness or otherwise of the nullification of the contract and its implications for Intels, the workers implementing the contract, the maritime sector and the economy as a whole.

    Of course, NPA had justified the revocation of the contract on Intels violation of the provision of the Treasury Single Account (TSA) which mandates that all revenues collected on behalf of government should be deposited into that Account while it said that the Agreement also contravenes sections 80(1), 162(1) and (10) of the constitution of the Federal Republic of Nigeria.

    In a June 28, 2016 letter, for instance, the maritime agency warned Intels that the firm was violating extant concession regulations by insisting on collecting revenues into its bank accounts rather than the NPA’s TSA account with the CBN.

    Officials also instructed Intels to start computing identification and payment profile of service boats individually, rather than the wholesale listing of all service boats under the name of Intels. This would allow each service boat operator pay into NPA’s transit accounts in local banks for onward remittance to the CBN.

    According to NPA Managing Director, Hadiza Usman, the port regulator was forced to terminate the contract for the fact that all efforts made by the management of the Authority to ensure that Intels complies with the TSA demands failed.

    But Intels has, however, said that it was not given adequate opportunity to negotiate before the action was taken just as it argued the TSA is a very recent development which was not part of the pilotage agreement when it was signed just as it insisted that it was illegal for the NPA to have unilaterally decided to revoke the contract without recourse to it, the partner, as well as the provisions for exiting the agreement.

    Mixed reactions over revocation of Intels’ contract

    Expectedly, mixed reactions have greeted the Intels’ saga. While many commended the NPA Managing Director for her insistence on due diligence, protecting the interest of government and the economy, others have also made a case for the need for the revocation of the contract to be reversed because of the efficient way Intels has executed it, among other reasons.

    Some pundits had observed that NPA reportedly cancelled the agreement for political reason – because of the former Vice President, Atiku Abubakar , who is a major shareholder of Intels with a view to undermine his business ahead of 2019 election, which Atiku has since expressed his intention to run for the highest political office.

    According to this school of thoughts, as a politically exposed person (PEP), Atiku may need to understand that doing battle with the government is usually not minced meat. They readily cite the experience of the former governor of Abia State, Dr. Orji Kalu, who was forced by the then President Obasanjo to relocate his airline, Slok Air, and other related business out of the country following his disagreement with the government at the time.

    Apparently miffed by this development, the founder and chairman of the company, Mr Gabrieli Volipi, an Italian, had specifically pledged to ensure that the company complies with the directive of government and transfers all the revenue from the pilotage project to the TSA as a law-abiding entity, as well as cooperate with the NPA in the development of Nigeria’s maritime sector and continue its development of the Badagry Deep seaport.

    Others sympathetic to Intels’ cause had advised that since the company has decided to comply with the provision of the TSA, the major reason why NPA is believed to have nullified the contract in the first place, then it behoves the latter to review its decision, get back to the discussion table with its partner on the necessary modalities to abide with the policy so that the contract can continue in earnest.

    According to these sympathisers, it is self-evident that Intels took the pilotage service from a revenue stream of a few thousand dollars per month to a multi-million dollars per month project. Little wonder it had to borrow $1.4 billion (N428.4 billion) from banks to execute the agreement with the understanding that the debt would be offset from monies realised from the pilotage services paid directly to the banks.

    Those pro-Intels have also argued that the government’s decision on the contract, if not reviewed, will send a wrong signal to foreign investors who want to invest or those who would have wanted to do more than they have done because they fear that government can wake up one day to terminate their contract, the way it did the agreement with Intels without respect for its provisions.

    They also contend that the company’s track record as a good corporate entity in the economy should also be considered, a development that has informed its decision to invest in the multi billionaire Badagry Deep Seaport project which has the capacity to end the traffic congestion at the Lagos seaport access road and which execution is of tremendous benefits to the maritime sector, the economy of Lagos and that of the whole country.

    More troubles for Intels

    Intels’ many troubles notwithstanding, the company is also been confronted by the management of the Oil and Gas Free Zones Authority (OGFZA) which has ordered a comprehensive compliance audit of its operations in the last 10 years.

    At separate correspondences by the Authority, copies of which were obtained by our correspondent, the Authority said it appointed a team of auditors to examine Intels’ books.

    The audit is over the company’s alleged serial violation of the laws and regulations governing operations in the free zone.

    Intels is being accused of failing to submit its records, warehouses and equipment imported under the zero duty regime of the free zone for inspection in compliance with the OGFZA Act.

    In a letter to Intels Managing Director, OGFZA drew his attention to the alleged breaches.

    The letter, signed by OGFZA Managing Director, Mr Umana Okon Umana, accused Intels and her 16 affiliate companies of having “transferred and sold off their assets” imported into the free zone under the zero duty regime, which only free zone companies are entitled to.

    In the letter, which reads in part, OGFZA boss said the company allegedly sold its assets “without the approval and consent of the Authority,” in contravention of Section 12(6)(a-b) of the Oil and Gas Export Free Zone Act.

    The section states: “Where any goods which are dutiable on entry into the Customs territory are sent from the Export Free Zone into the Customs territory, the good shall be subject to the provision of the Customs, Excise tariff, etc. (Consolidation) Act and any regulations made thereunder, and if the goods are intended to be disposed of in the Customs territory, shall not be removed from the Export Free Zone unless— a) the consent of the Authority has been obtained; and b) the relevant Customs authorities are satisfied that all imports restrictions relevant thereto have been complied with and all duties payable in connection with the importation thereof into Customs territory have been paid.”

    According to Umana, on March 20, the Authority issued a new standard operating procedure (SOP) to enforce the laws and regulations in the free zone.

    Two days later, 16 affiliates of Intels filed applications for de-registration from the free zone.

    It was learnt that the revised SOP made it mandatory that all requests for transfer of cargoes from the free zone had to be made to the Authority in keeping with the law, to protect the interest of government and other stakeholders.

    Following Intels’ affiliate’s applications, OGFZA informed the companies that in line with section 15 (1) of Act, they would have to be audited.

    The Authority said the audit is to ensure that their assets were fully accounted for and that appropriate revenue payable to the federal government is remitted when the assets are disposed of.

    In keeping with section 15(1)(a-c) of the Act, a joint team of OGFZA and Nigeria Customs Service was set up to visit the companies’ premises to inspect their records and equipment ahead of the de-registration.

    Umana further alleged that the assets that may have been disposed of by Intels and its affiliate companies, including Prodeco, add up to 3,000 project vehicles, trucks, cranes, forklifts and a large number of assorted construction equipment.

    In the letter, OGFZA also drew the attention of Intels to the fact that its Free Zone operating licence, which had expired since 31 December 2016, had not been renewed.

    Intels’ rebuttal

    Following the OGFZA allegations, Intels, through its legal adviser, Barr. Mike Ekpelle, has threatened legal action against Umana, saying he levelled “false and malicious allegations against the company and its management which are injurious to its business interests, as well as the reputation of INL.”

    In the letter, which read in part, Intels said: “We have no doubt that as these are deliberate actions, you are well aware of the consequences as these are clearly crude, irresponsible and off-limits. At the appropriate time, we will initiate necessary legal measures to ventilate this grievance.”

    In a letter titled ‘Re: Various Matters in Contention between Oil & Gas Free Zone Authority (OGFZA) and Intels Nigeria Limited,’ Intels listed some issues of contention between INL and OGFZA, which it said Umana capitalised on to disparage the reputation of the company.

    Intels listed some of the contentious issues to include the refusal of OGFZA to renew the 2017 Operating License for Intels Nigeria Limited; the imposition of land charges by OGFZA; nullification of INL’s Industry Wide Standard Tariff (IWST) and other port-related charges by OGFZA.

    Intels also frowned at what it called Umana’s penchant for conveying messages to government agencies and clients injurious to its business interest and reputation; non-payment for Intels’ premises occupied by OGFZA at Onne and Heliconia Park Estate and the refusal of OGFZA to renew the residence permit and re-designation of INL expatriate employees in the Onne Free Zone.

    “As you are aware, we have so far engaged you in discussions with a view to resolving the matters amicably, in line with our conviction that a harmonious working relationship will be of mutual benefit to our two organisations and will be in the overall interest of both parties. However, in view of your persistent engagement in actions deliberately aimed at undermining our business, as well as tarnishing our hard-earned reputation, it has now become imperative to formally address the various issues on both the law and facts with the hope that you will be better guided to retrace your ill-advised actions,” the company said.

    On OGFZA’s refusal to renew the 2017 Operating Licence of Intels Nigeria Limited, the company states: “OGFZA has refused to release INL licence for 2017 on the ground that INL has to pay all charges and fees demanded by the OGFZA notwithstanding that INL has paid in full the renewal fee for the licence. The other fees in question relate to new free zone tariffs on land charges imposed by the Free Zone (Tariffs & Other Charges) INL has raised some issues concerning the land charges (which are further enumerated hereunder) with the result that the claim by the OGFZA on INL for those charges are presently being disputed.

    Intels said OGFZA’s view that INL has not complied with Regulation 35(1) (b) (“payment of any outstanding sum due to the Authority”) and is therefore not entitled to have its licence renewed, is a grave error, insisting that OGFZA should issue INL its licence for 2017.

    On the land charges imposed by OGFZA, Intels maintained that INL is not liable to pay the land charges levied on it by OGFZA, pointing out that the premises it occupies in the ports were granted by the Nigerian Ports Authority (NPA); the statutory/legal owner of the land on which our operation is situate. It said OGFZA has no legal authority to administer or manage land vested in the NPA in any manner whatsoever. “OGFZA cannot levy any charges over NPA land, and not having any interest over the land, it cannot register third party interests or transactions over the land.”

    As the battle rages on, it is remains to be seen how this matter between Intels and government will be resolved.

  • Again, Intels in the eye of the storm

    If we were to organise an award ceremony for the most victimised and harassed private company in Nigeria today, Intels Nigeria Ltd would win seamlessly without any contention. Yet the company is still surviving and standing strong despite the grenades of harassment unleashed on it daily by agents of government. For whatever reason, Intels appears to have become the most fertile field for government agencies to exercise their executive powers for no justifiable reason, except for the visibly deliberate and calculated attempts to malign the integrity of the company and eventually frustrate its business commitments in the Niger Delta, and Nigeria by extension. In a pre-set manner, each agency of the government comes up with a specious allegation the moment an existing contention shows a veneer of vaporization. And suddenly, a once conservative company that would rather invest resources in delivering world class services to its teeming clientele now makes headlines in the media every other day. They keep dragging a responsible company in the media as an irresponsible entity and you wonder to what end?

    It all began with the Nigerian Ports Authority (NPA), which started with a request for Intels to comply with the Treasury Single Account (TSA) in complete disregard for the existing agreement between the two parties. Whilst negotiations and discussions were still ongoing, the NPA independently terminated the pilotage agreement between the two parties based on the counsel of the Attorney-General of Federation, who by the way, assumed the role of the court of law and declared the pilotage agreement null and void ab initio. In the middle of that crisis, the Federal Inland Revenue Service (FIRS) stormed the headquarters of Intels accusing the company of tax default. Apparently, when the agency discovered that there was no default, they denied accusing the company of tax default and attributed their visit to routine exercise. In a relay manner, the baton of harassment and victimisation has now been handed over to the Oil & Gas Free Zones Authority (OGFZA) led by its Managing Director, Umana Okon Umana.

    The OGFZA has accused Intels of flouting sections of the Oil and Gas Free Trade Zone Regulations 2003 for which the authority wants to carry out a 10-year period compliance audit. As a result of these alleged shortcomings, the OGFZA has now refused to renew the operating licence for 2017 for the company despite the fact that the company has fully paid for the renewal. In response, Intels has said that: “We have no doubt that as these are deliberate actions, you (Umana) are well aware of the consequences as these are clearly crude, irresponsible and off-limits. At the appropriate time, we will initiate necessary legal measures to ventilate this grievance.”

    Following the threat by the company to seek legal action, OGFZA seems to be changing tune resorting to a soft combination of notes that they only issued a query to Intels. Whether this was just a query or another routine exercise by the agent of government, this unending image battering is injurious to the going concern of the company. Not many corporate entities have experienced this level of victimisation in recent times in Nigeria and still come out focused. Some companies did not even face half of what Intels is currently combating before they fled this country. If the owners of Intels, who are seasoned businessmen, decide to sell off their investment and leave this country today, they will survive somewhere else and Nigeria will suffer for it. Nigerian government seems to be sending a clear message that investing heavily in the country is tantamount to some act of criminality. Otherwise, why would government agencies take delight in harassing a responsible organisation that is contributing immensely to the socio-economic advancement of a developing country like ours? What is more worrisome is that every government agency that haunts Intels and accuses the company of refusing to pay a certain levy to government turns out to owe the company. Could it then be that they make these allegations as a smart way to avoid paying Intels what they owe the company?

    In the month of October alone, the company has had to deal with distractions from government agencies that claim to be carrying out routine obligations on the company, yet those obligations are always in the media with a deliberate negative slant to soil the image of the company. It is puzzling that the government has chosen this path in relating with investors in the country. This constant display of oppressive governmental powers triggers the question of intent. Are these coordinated efforts aimed at destroying Intels? Or how else does one explain the sudden coordinated projectile on a company that has existed in this country for over 30years with a track record of integrity and corporate social responsibility?

    Whatever the motives behind this siege on Intels are, it is high time someone told the government the truth. Intels may have Nigerians who have political inclinations and interest on its board, but Intels is a Nigerian company. It belongs to Nigerians and adds significant value to the Nigerian economy. Therefore, the government owe it to Nigerians to protect what belongs to them. Every government agency is entitled to carry out its statutory obligations within the confines of the law and in a manner that earns public support and the respect of the corporate world. Labelling companies and witch-hunting them only gives the government of the day a negative image both within and outside the country. Our dominant image is bad enough, we need not amplify it.

    President Muhammadu Buhari must either step in to stall the ongoing onslaught.  This is a new script that is alien to Nigerian business environment. The plight of Intels is now a cause for worry. Our nation is gradually criminalising investing in the country, especially when some stakeholders of the business have political interests. So far, it appears the only plausible sin Intels has committed to attract this treatment is the commitment of the company to invest huge funds in Nigeria. By this action, our country keeps reinforcing the negative rating on our ease of doing business. We are reinforcing the labelling that we have an unpredictable political environment that is business unfriendly. If things remain the same, the fallout of the ongoing onslaught against Intels is loss of jobs and a continuous decline in Foreign Direct Investment (FDI) into the country.

    Nigerians must not relent in speaking against this strategic effort to embarrass and distract Intels from conducting business successfully. As at today, there is no Oil and Gas Free Trade Zone in Nigeria that is more viable and successful than the Onne Oil and Gas Free Trade Zone managed by Intels. It is the largest of its kind in the world and adds great value to the Nigerian oil and gas sector and the economy at large. It is a world-class one-stop shop to make life easy for investors in the oil and gas sector to enable operators within this environment benefit from economies of scale. In an interview with a leading Nigeria newspaper, the Managing Director of the OGFZA acknowledged that over $6 billion of investments have been sunk into the Oil and Gas Free Trade Zones in the country, with a significant percentage of this going to the Onne Oil and Gas Free Trade Zone. Is it not then an oxymoron that the same company that has facilitated this level of investment is being persecuted?

    We must retrace our steps as a nation and pay attention to the right things. The more we keep harassing this company, the more pronounced the perception of persecution increases, which has the capacity to negatively affect the public image of the government of the day. Intels is a responsible corporate organisation and should be treated accordingly.

     

    • Goodluck is a Lagos-based Business Communication Analyst.

  • ‘Intels not owing OGFZA’

    The management of Intels Nigeria Limited (INL) has said that contrary to speculations and unproven allegations, the company is not owing the Oil and Gas Export Free Zone Authority (OGFZA).

    INL also said its operations are not in violation of the OGFZA Act.

    INL said the allegations levelled against it by OGFZA are “false and malicious” and are injurious to the company’s business interest.

    The company said there have been exchange of correspondences, meetings and discussions held between it and OGFZA regarding various demand notices issued by OGFZA as well as other measures taken by OGFZA affecting INL’s status and operations in the Onne Oil & Gas Free Zone.

    In a statement, Intels said it is not liable to pay the demanded Lease/Sublease Charge being introduced by OGFZA,  insisting that since the charge is in dispute, the charges are not due, within the meaning of Regulation .