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Tag: INTELS

  • OGFZA orders 10-year audit of Intels for ‘unlawful operations’

    OGFZA orders 10-year audit of Intels for ‘unlawful operations’

    The Oil and Gas Free Zones Authority (OGFZA) has ordered a comprehensive compliance audit of Intels Nigeria Limited’s operations in the last 10 years.

    The Authority said it appointed a team of auditors to examine Intels’ books.

    The firm is a concessionaire of the Nigerian Ports Authority (NPA) and a licensee of OGFZA.

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

    Intels was 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 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.

    He said the company allegedly did so “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 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.

    Following the OGFZA allegations, Intels Nigeria Limited (INL) has threatened legal action against Umana, saying he leveled “false and malicious allegations against the company and its management which are injurious to its business interests, as well as the reputation of INL.”

    INL said it is compiling the losses being suffered by the organisation due to Umana’s actions both in his official and private capacity.

    It 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 he 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.

    INL also frowned at Umana’s “penchant for conveying messages to government agencies and clients injurious to INL 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.

    Part of the Intel’s letter reads: “We refer to the various exchange of correspondence, meetings and discussions held between our company and the OGFZA regarding various demand notices issued by the OGFZA, as well as other measures taken by the OGFZA affecting our status and operations in the Onne Oil & Gas 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 License 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.”

    Intels, in its letter, said the charges of terminal operators for stevedoring or other terminal handling is certainly not part of Regulation 11 of the Free Zone Regulations which grants the OGFZA the authority to issue a schedule of Tariff that should apply in the Free Zone. The OGFZA tariff, Intels maintains, relates to services intended to be provided by or through the OGFZA, insisting that this was never intended to regulate NPA services including cargo handling of any sorts, as these are the preserve of NPA.

    Intels said it is on record that it has paid the prescribed FZ licence fees for the 2017 Operating License after filing the 2016 annual return along with other formalities, stating, “as already demanded by us, we expect that OGFZA should immediately release our FZ (Free Zone) license for 2017.”

    “If you fail or neglect to release the said License within five days of receipt of this letter, we shall have no option but to take appropriate legal steps to compel the OGFZA to release our 2017 FZ Operating License along with all other services and benefits ancillary thereto and accruing to us as FZ Licensee, including the grant of expatriate quotas and re-designations thereof as validly applied for,” Intel said.

     

  • The NPA/Intels contract palaver

    SIR: It is no news any more that the government of President Muhammadu Buhari has authorized the Nigerian Ports Authority (NPA) to forthwith commence the termination process of the Pilotage Monitoring and Supervision Agreement between NPA and Integrated Logistics Services Nigeria Limited (INTELS) on the ground that the said agreement was void ab initio.

    The Attorney General of the Federation (AGF) vide a letter dated September 27, directed the Managing Director of NPA to commence the process. There are several phases or angles to the issue at hand, but since the fulcrum of it lies with the constitutionality or otherwise, we shall look at it from that basis first.

    Going by what is contained in the letter to the Managing Director of NPA, the AGF is only asking NPA to unilaterally determine its relationship with INTELS. It suffices to say that the parties’ mutual agreement is to be terminated.

    Without really applying any sophisticated rule of interpretation it is only commonsensical that the said Sections 80 and 162 of the Constitution that the AGF is relying on simply require that all revenues generated by or on behalf of the federal government be deposited into the Federation Account, an account which is by no means a special one.

    What is more; by S.162 (10) of the 1999 Constitution (as amended), it is clear that revenue means “any income or returns accruing to or derived by the government of the federation from any source”.

    And it is not unclear that government makes or earns its revenues from either direct investment or through statutory functions of its agencies, one of which is NPA. NPA being a principal agency of the government generates revenues when a statutory function is efficiently and sufficiently carried out. That is to say when the NPA does not work efficiently it does not earn revenue efficiently for the government too. This is a follow up to S.7 (a) in the NPA Act, which provides that the functions of the NPA shall be to:

    “Provide and operate in the ports such facilities as appear to its best calculated to serve the interest of Nigeria”.

    Another look at S.7 (d) of the NPA Act shows that the NPA is to provide for the approaches to all ports and the territorial waters of Nigeria, such pilotage services and aids including clearing, deepening and improving of all waterways. It therefore means that the NPA has the sole power to provide pilotage services. Choosing to contract such pilotage service(s) here to INTELS is not outside its functions.

    A combined effect of Sections 8 (1)(L) and 9 of the same NPA Act empowers the authority to enter into agreement with any person for the provision or operation of the ports facilities and other functions and power other than the power to make regulations, which is exclusively reserved for the authority.

    Going by the above, it is an emphatic Yes to say that the NPA has been acting under its statutory powers in its agreement with INTELS.

    Reports have it that INTELS as an independent contractor has had a 28% monetary commission for its services rendered. What this means is that the NPA on behalf of the government earns 72% as its revenue after settling independent service provider(s). With utmost respect that 72% money is the final revenue earned by the authority for the government which is to go into the Treasury Single Account (TSA) that the AGF is seemingly canvassing for. At this juncture what makes up revenue for the federal government in this quest as provided for in Sections 80(1) and 162 (1) and (10) respectively is the 72% accruing to NPA and not the 28% accruing to the independent service provider like INTELS.

    But supposing it is true that the contract agreement is unconstitutional, is it within the place of the AGF to instigate a party to unilaterally terminate the said contract other than an originating motion for interpretation? The answer is capital NO.

    What about the principle of pacta sunt servanda governing contracts? It is sad how the AGF was curious without looking at the facts. The issue at hand involves rights and obligations. It is further sad how he was blind to the fact that the said agreement has an arbitration clause that must first be explored.

    Latest reports now have it that INTELS has rendered “apologies” to the government. This is a beautiful public relations approach in sustaining the almost threatened sector. But notwithstanding the apologies from INTELS and without holding brief for the company, this piece is only intended to x-ray the ingredients that make up the contractual relationship between the parties and more importantly, to serve as guide to the AGF against other curious actions that will only end up misleading the citizenry.

     

    • Azibola Omekwe

    Abuja.

  • Union: 11,000 may lose jobs over Intels closure

    Maritime Workers Union of Nigeria (MWUN) has expressed concern over the quit notice and cancellation of Intels Nigeria Limited Vessel Pilotage Service by the Nigerian Ports Authority (NPA). It warned that the development may lead to loss of over 11,000 direct and indirect jobs.

    A statement signed by its President-General, Comrade Adewale Adeyanju, said most of these employees are Nigerians with families and responsibilities.

    The union said the socio-economic implications of most of losing their jobs in a volatile area like Rivers State can be better imagined than experienced.

    “As organised labour, our utmost concern is job security and welfare of our members in Intels Nigeria Limited. Today, we are aware that Intels has under its employment over 5000 direct employees and over 6000 indirect employees bringing the number of employees to over 11,000.

  • NPA gives INTELS three months to quit ports

    NPA gives INTELS three months to quit ports

    THE Nigerian Ports Authority (NPA) has given the management of oil and gas logistics firm, Intels Nigeria Limited (INTELS), three months to round up and hand over the pilotage services to the authority.

    This, it was learnt, was contained in a letter sent by the NPA to the company last week.

    Addressing reporters in Lagos yesterday, NPA Managing Director Ms Hadiza Bala Usman said the termination of the Pilotage Agency Agreement (PAA) and the handing over became imperative because the company has allegedly refused to comply with the Treasury Single Account (TSA) of the Federal Government.

    NPA, she said, had in the last 14 months persuaded INTELS to comply with the extant law, but the company, she said, allegedly rebuked entireties made to it.

    The Attorney General of the Federation (AGF) and Minister of Justice Abubakar Malami (SAN) had written to Ms Usman on September 27, directing her to terminate the boats pilotage monitoring and supervision agreement the NPA had with INTELS. The AGF said the contract violates the Constitution of the Federal Republic.

    The NPA managing director, apart from saying the agreement with INTELS violates section Sections 80 (1) of the constitution, added that 28 per cent commission the company receives for the monitoring and supervision of pilotage services it handles on behalf of the agency on the nation’s territorial waters was costly.

    But INTELS said the termination of the agreement was “clearly preposterous and the consequences highly injurious” to the interests of the country.

    A letter signed by its director, Mr. Silvano Bellinato, said the position of NPA on the agreement may force INTELS to reconsider its multibillion dollar investment at the Badagry deep seaport in Lagos.He added that the investment has the potential of creating thousands of direct and indirect jobs for Nigerians.

    INTELS gave NPA seven days from last Wednesday, to reconsider the residual critical areas of their agreement and to agree, to the possible extent, on a common solution, failing which it shall head to arbitration.

    The company alleged that the NPA is indebted to it to the tune of hundreds of millions of dollars.

    But the Federal Inland Revenue Services (FIRS) yesterday denied shutting INTELS office in Onne, Eleme Local Government Area of Rivers State over tax evasion.

    In a statement, FIRS said: “What we did was that our team pasted a non-compliance sticker on the company’s premises.

    “Such stickers are always pasted on the premises of companies that have not been complying with the company’s tax obligations:  (Value Added  Tax  Act  Cap VI, and Companies Income Tax, CIT Cap C21, Laws of the Federation of Nigeria, 2014, & Other Tax Laws.

    “The non-compliance stickers are routine. We did not seal nor close the company. INTELS is free to carry out IRS operations. It is not a distrain sticker.”

    INTELS Nigeria Limited was established 25 years ago with the vision to develop an integrated logistics solution, offering a complete package of facilities and services to the oil and gas industry in Nigeria.

     

     

  • Travails of INTELS

    It all began as a singlehanded alteration to the terms of contract with INTELS to remit all revenues, including the revenue that should accrue to the company into the Treasury Single Account, TSA. Then it transmuted into media campaign against the company accusing it of running an unhealthy monopoly in the oil and gas services industry in Nigeria. The tempo kept increasing, and now we have the last straw aimed at breaking the camel’s back. Following a Presidential approval, Abubakar Malami, the Attorney-General of the Federation wrote to the Managing Director of the Nigerian Ports Authority, NPA, Hadiza Bala-Usman directing her to terminate the boats pilotage monitoring and supervision agreement between INTELS Nigeria Limited and the NPA, which allowed the company to receive revenue on behalf of the government and retain a certain percentage of the revenue collected. As reported in some dailies, the AGF in response to a letter from the NPA boss, stated that the agreement should be terminated because it is illegal and contravenes Sections 80(1), 162(1) and (10) of the constitution of the Federal Republic of Nigeria. This contravention is further heightened by the resolve of the current administration to implement the Treasury Single Account (TSA). En passant, it is imperative to establish here that the government will always find a constitutional basis for whatsoever it is determined to do. So there is probably no point in attempting to scrutinise the spirit of the sections of the constitution the decision is predicated on.

    As a background, the Managing Director of the Nigerian Ports Authority had written to INTELS earlier this year proposing a review of the existing contract, among other things, between the two parties. The proposal also requested INTELS to respect the new policy of the federal government, TSA. INTELS provided reasons why it would not be able to adjust its financial process to accommodate TSA at the time. The company rightly stated that the TSA policy was not part of the contractual agreement it had with NPA; as a result, the company had already used its account to secure loan facility that can only be serviced by retaining its percentage of revenue collected. After series of correspondences between the two parties, the NPA issued a threat that it would terminate the agreement with INTELS if the company refused to comply with the TSA policy. That threat has now been fully executed.

    However, many have described the ongoing crisis as a political witch-hunt targeted at the former Vice President, Atiku Abubakar who is a major shareholder in the company and a possible presidential aspirant in the next election. Inasmuch as one would prefer to reason otherwise, how do you prove the point that this is not a witch-hunt when all the handwriting on the wall clearly suggests it is? It is more difficult to think otherwise considering that the former VP, during the formal launching of his Presidential bid for the 2015 elections, had publicly pronounced INTELS as his most successful business. In the first instance, the reference made to the constitution in the letter written by the AGF to the MD of NPA does not in any manner forbid the government from entering into agency agreements with private entities. Or is there a part of the law that says government cannot engage in contractual agreement with private companies in the collection of revenue? INTELS is not the only private organisation that collects revenue on behalf of the government and remits same into the government’s coffers. This is replicated in many other sectors of the economy. For instance, many companies deduct withholding tax from contractors and remit the same to the government. I would like to believe that is a form of agency arrangement that allows the private entities to collect revenue on behalf of the government.

    The same model is employed at the state levels. This model has been beneficial to both the government and the citizenry in many ways. It is common knowledge that government performance in the country is marred by bureaucratic bottlenecks that eventually takes its toll on the overall output of any endeavour. The model is not peculiar to Nigeria. It is the same that is employed in other developed nations such as the United States, United Kingdom and South Africa where they have Private Collection Agencies. In other words, it is international best practice; agency arrangement is a normal phenomenon. It is therefore worrisome that the government could terminate a contractual agreement on the premise that it was in contravention of the constitution. Maybe, we will require professors of law to further enlighten Nigerians on the issues at stake. Until then, the only logical summation to all of this is political witch-hunt.

    But what is more alarming is the preference of the government to take on a company that employs over 20, 000 Nigerians for political reasons. Government is a going concern, a continuum that demands respect for existing agreements. And in that regard, it is difficult to believe that the previous administrations respected the agreement with INTELS despite its illegality. More so, the TSA issue is a recent development that was never in the picture when the agreement with INTELS was signed. If the government wants the other party to embrace the TSA, that has to be agreed at the table of negotiations not by revocation of agreements. The government cannot just issue a directive to a partner in a contract when the terms of the contract did not support such.

    It is dangerous to play politics with the livelihood of Nigerians. According to data from the National Bureau of Statistics, Nigeria currently has an unemployment rate of about 15% of the population. It appears we are more interested in increasing that percentage than we are in reducing it. The ripple effect of revoking INTELS’ contract is the attendant job loss. The only way to fully understand the impact of INTELS on Nigeria and the possible effect of the witch-hunt is to visit Onne community and have a conversation with the king of Onne. The whole community practically survives on the company as it employs many of the youths and continues to provide both direct and indirect jobs for the people. To attack INTELS is to attack the Onne community and further plunge thousands of young men and women into the labour market. It is really worth it? Politics is meant to be in the interest of the people not against the people.

    It is important for the government to listen to the voice of wisdom and bring INTELS to the negotiation table for an amicable resolution to the current impasse. Terminating contractual agreement with the company on the basis of illegality is petty to say the least. The contract is a form of Public Private Partnership and there is absolutely nothing illegal about that. We all understand the need for every political gladiator to strategise for the coming elections. We understand the need to outsmart political opponents to corner some political advantages. It is normal in politics but there is always a red line we must not cross. When political moves have the potential of eliminating the livelihood of thousands of Nigerians, it is a red line that must not be crossed. Let us embrace options that will be beneficial to all Nigerians and to the nation at large.

    By the way, if INTELS is attacked today for political reason, who will be attacked after 2023? Power is transient; no one really knows where power will swing to tomorrow. It is not smart to kill the future of thousands of people for the expediency of today. There are certainly other ways to fight politics; not by attempting to kill a company that has been socially responsible throughout its existence in Nigeria. Let us play politics that pays all not politics that pays some and plagues others.

     

    • Isiaka, a Business Analyst, writes from Abuja.

     

  • NPA’s pilotage contract with INTELS stands terminated

    NPA’s pilotage contract with INTELS stands terminated

    The Nigerian Ports Authority (NPA) boats pilotage monitoring and supervision contract with INTELS Nigeria Limited remains terminated, the authority’s Chief Executive, Hadiza Usman, has said.

    The NPA boss told newsmen on Monday in Lagos that the contract was terminated on the advice of the Attorney-General of the Federation (AGF) and Minster of Justice, Malam Abubakar Malami.

    According to her, the legal advice was contained in an AGF’s letter dated Sept. 27, 2017, which was a response to NPA’s May 31, 2017 letter in which it sought clarity on the matter.

    Usman said that she had raised letters and held several meetings with INTELS management to comply with the Federal Government’s directive on the Treasury Single Account (TSA) since she assumed office 15 months ago.

    “They (INTELS) maintained their stand not to make payment to NPA. They want to deduct 28 per cent commission and other costs.

    “NPA says a TSA account has been opened and that at the end of the month, there will be reconciliation of accounts but INTELS refused.
    “Will I spend 15 months talking to a company to comply with the constitution of the country?” she asked.

    Usman explained that all further attempts by the NPA to get the company obey the payment directive was met with various excuses.
    She said the NPA management would proceed on a transitional arrangement to engage another firm.

    On fear of job losses, the managing director said that the workers would be absorbed by any entity that took up the job.

    On repair of port access roads, Usman said she had sent so many letters to the Minister of Power, Works and Housing, Mr Babatunde Fashola, to provide clarity on budgetary provisions for the port access roads.

    Similarly, she said that the bad state of Ikom Bridge in Cross River had not allowed containers to move to the northern part of the country.

    The managing director, however, said that it was not under the purview of the NPA to provide N1.8 billion for the rehabilitation of port access roads.

    On the controversial contract on buoys, she said that the NPA management had discovered concerned officers that misguided the authority on the contract.

    “We need buoys. We are going to buy more buoys.

    “We hope that the controversy will be resolved to enable the firm – Marina Energy- to continue,’’ she said. (NAN)

  • NPA, INTELS row puts 20,000 jobs at risk

    • Osinbajo urged to intervene

    The Nigerian Importers Integrity Association (NIIA) has warned that no fewer than 20,000 jobs in the Niger Delta region could be lost as a result of the face-off between Nigerian Ports Authority (NPA) and oil and gas logistics giant INTELS Nigeria Limited.

    The group has appealed to Acting President Prof Yemi Osinbajo to intervene so as to avert the loss of jobs and its socio-economic backlashes.

    Its President, Mr. Godwin Onyekazi said it was unfortunate that a simple business disagreement, which could have been amicably resolved “at the coffee table” was allowed to degenerate to the point of threatening thousands of jobs.

    “INTELS is a major operator in oil and gas, maritime and real estate industries. It is one of the largest employers of labour in the country and in the Niger Delta region. It should therefore concern any well-meaning Nigerian that NPA is unable to amicably resolve and manage its differences with such organisation.

    “We have also read that INTELS is being persecuted because of its perceived links to a top politician in the country. This political dimension to the entire saga makes the intervention of Acting President Osinbajo imperative.

    “We do not think that companies operating in the country should be subjected to political persecution especially at this time when the Federal Government is pushing hard for peace to reign in the Niger Delta region,” Onyekazi said.

    He said the competition for oil and gas logistics is international and the loss of business by INTELS is the loss of business by Nigeria.

    “It is an exercise in delusion to think that there is any other facility in-country that can provide the type of services INTELS is providing to the oil and gas sector. The oil and gas majors will simply move to Angola, Sao Tome and Principe or South Africa to enjoy the kind of services they enjoy at INTELS if it is no longer in position to provide such service.

    “The implication of this is huge revenue loss to the country and loss of jobs in the Niger Delta region,” he said.

    The NIIA chief also called on the Federal Government to provide palliative measures to cushion the effect of Ijora-Wharf road closure for one year on port users.

    While commending the government for deeming it fit to repair the road, which he said has been abandoned for several years, he said the same attention should be given to the Port Harcourt Port and Onne Port access roads.

    Justice A. R. Mohammed of the Federal High Court, Abuja, had last month issued an interim order directing the NPA and four others to maintain the status quo in a suit filed by INTELS Nigeria Limited on the de-categorisation of terminals at the nation’s seaports.

    INTELS, which filed the suit number FHC/ABJ/CS/417/2017 at the Federal High Court Abuja, is asking the court to, among other reliefs, issue an order stopping the NPA and other defendants from implementing the proposed policy review.

  • INTELS kicks against terminals decategorisation

    INTELS kicks against terminals decategorisation

    INTELS Nigeria Limited has kicked against the decategorisation of port terminals by Nigerian Ports Authority (NPA) because it is not in the interest of the nation.

    The firm also warned that while it is a violation of the port concession agreement sealed and signed with the government, the action will lead to huge revenue loss to the Federal Government.

    In a witness statement on oath filed at the Federal High Court, Abuja, in a case instituted by the company against NPA and four others, a Senior Legal Manager of INTELS Nigeria Limited, Mr. Dominic Onwuchekwa, said the proposed de-categorisation of the terminals will not only jeopardise the prospect of the plaintiff recovering its investments under the concession agreement signed with the Federal Government, but it will also undermine the commitments made to its lenders.

    “In addition, the de-categorisation will lead to a situation whereby all terminals will charge the lower fee of $1.2 per ton (even for oil and gas cargoes for which $5.83 per ton should be paid) in order to attract patronage from port users, but on the other hand short-changing the government itself and the people of Nigeria,” Onwuchekwa averred.

    He further stated that in discharging its obligations in accordance with the terms and conditions of the various lease agreements (including the concession) with the Federal Government, INTELS expended huge sums of money in upgrading port facilities and building infrastructures as well as developing specialised oil and gas designated terminals based on the need and requirements of the oil and gas industry globally.

    “Conservatively, the plaintiff has, thus far, expended over $2 billion out of its own resources without amortisation in various projects and has budgeted additional $5 billion in phased port terminals development and infrastructural renewal,” he stated.

    He said the huge investment by INTELS in five concessioned port terminals across the country were made in response to the Federal Government’s quest and demand for investment in port infrastructure development in Nigeria.

    “In addition to the above, the plaintiff had also expended these huge expenses because it had entered into and executed five. Lease agreements on the concessioned port terminals which life span were 25 years with option of renewal for a further term on each terminal,” Onwuchekwa added.

    He said INTELS’ investment in the concessioned terminals was “based on the assurances and comforts from the first – fifth defendants, especially the third defendant (NPA), stating that the company “was persuaded into financing huge capital intensive projects for the benefits of the first- fifth defendants and the people of Nigeria”.

    According to him, “this relationship was based on the understanding that the plaintiff shall re-coup its investments from its agreements with the defendants entered in respect of contracts at the oil and gas terminal services.

    It will be recalled that Justice A.R. Mohammed of the Federal High Court, Abuja last month issued an interim order directing the NPA and four others to maintain the status quo in a suit filed by INTELS Nigeria Limited on the de-categorisation of terminals at the nation’s seaports.

    INTELS, which filed the suit number FHC/ABJ/CS/417/2017 at the Federal High Court Abuja, is, among other reliefs, asking the court to issue an order stopping NPA and other defendants including their representatives, agents or privies from implementing a proposed policy review which purports to cancel the designation of ports and terminals in Nigeria having led it into committing huge human, financial and material resources into developing five port terminals located in Calabar Terminal A, Warri Old Terminal A, Warri New Port Terminal B, Onne Port Federal Ocean Terminal A and Onne Port Federal Lighter Terminal B.

    The defendants in the suit are the Federal Government of Nigeria, Attorney General of the Federation, NPA, Bureau of Public Enterprises (BPE) and the Federal Ministry of Transport.

  • Italian Chamber chief praises INTELS

    Italian Chamber chief praises INTELS

    President of Italy’s Chamber of Deputies – the equivalent of Nigeria’s House of Representatives, Mrs Laura Boldrini, said she is pleased with INTELS Nigeria Limited for the development of the multi-billion naira Eko Energy Estate

    The Italian top parliamentarian commended INTELS, the leading oil and gas logistics giant,  for initiating the ambitious project, which she said, will contribute to the diversification of Nigeria’s economy.

    “This country is so rich in land and agriculture. So this is the time to put a different perspective in place.

    “I am happy there is a lot of interest from outside investors because this country has to be supported because it has a big potential,” she said.

    Mrs Boldrini and her team were received by INTELS Director/CEO of Prime Properties and Investment, Mr. Silvano Bellinato; the General Manager, Commercial of INTELS Nigeria Limited, Mr. Massimiliano Landolfi and the Managing Director of SouthEnergy Limited, Mr. David Frame.

    While briefing the delegation, Mr. Landolfi said the Eko Energy Estate, being built at the Eko Atlantic City, Lagos. is spread across 450,000 square metres of land area, taking full advantage of the location at the Lagos channel and the main canal entrance at the Eko Atlantic City.

    He said the master plan of the Eko Energy Estate will create a green and family-friendly neighbourhood, while providing an enabling environment for foreign investors to work and live more conveniently in Lagos with the Eko Atlantic Business District, an international school, hospital, shopping malls and a Marina at close proximity.

    He said Eko Energy Estate Phase 1, which consists of 3 towers of Ground plus 19 floors with a flexibility of one to four bedroom apartments tailor-made to clients’ requirements, will be completed by mid-2018.

    According to him, “Facilities like swimming pool and pool bar, tennis court, gym and playground are included. Some of the services rendered will be 24/7power supply, water and sewage treatment, security, ICT and 25 years track record of estate management”.

    He said other facilities at the estate include a Trade Centre comprising two office and corporate towers of 30 floors each, to provide “a comprehensive solution for the corporate sector”.

    He said Eko Energy Estate will also have a shopping mall with variety of food markets, restaurants, bars, fully equipped sports centre, ample parking facilities and an urban park area.

  • NCDMB praises INTELS over Onne facility

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB),  Simbi Wabote, has commended INTELS Nigeria Limited for developing the Onne Free Zone into “a world class facility.”

    Wabote, who spoke after a tour of the Onne Free Zone in Rivers State,  commended the various companies that have invested and are operating at the facility.

    He said: “First I want to thank the management of INTELS for organising this visit. We came here not just to visit INTELS but also to visit most of the companies operating within this facility.

    “We have seen FMC, Pipe Coaters, we also saw GE, One Subsea, AOL Orwell and a couple of others. I can tell you that it is a very impressive facility: you have a lot of clients here.

    “What I see from discussion and interaction with them, I see this facility as world class. I believe they all want to remain within this facility to continue their business because I don’t think there is any other facility in this country that can match what you have here.

    “For me, it is mind blowing; a lot of us do not know what is here; we hear about Onne, we hear about INTELS, our perspective of Onne and INTELS is completely different.

    “We didn’t think it could even measure up to NPA in Apapa port and the other ports in Lagos. This is quite significant; given the number of companies you have here, given the marine activities that are ongoing here,” he stated.