Stories by Isaac Anumihe
Industry watchers have attributed the termination of the pilotage contract between Nigerian Ports Authority (NPA) and a logistics firm, Integrated Logistics and Services (INTELS) to the presidential ambition of one of the stakeholders—-former Vice President Atiku Abubakar.
Atiku has not veiled his presidential ambition for 2019. He has also taken some steps which are incongruent with the All Progressives Congress (APC’s) aspiration.
Atiku is a proponent of restructuring which is against the government policy. He also contested a primary election against Buhari, disregarding every advice to step down.
So, when on October 10, 2017 it was reported that the government of President Muhammadu Buhari through its agency, NPA, terminated the pilotage contract of Intels, where the former vice president has an interest, industry watchers concluded that it was as a result of the frosty relationship that exists between the two giants.
For instance, a freight forwarder said: “The aforesaid pilotage contract was instituted in 2010. Was Atiku the president then? The Badagary Deep Seaport Agreement was signed in 2013. Was Atiku the president or vice in 2013? My brother, the truth is that Nigeria is broke and needs private investments to grow the economy.
Intels was established over three decades ago. A child that was born at that time will be a married man today. It is unquestionably uncharitable for you to be owing a man $700 million on a joint investment project and seek to terminate the contract. If Intels goes on arbitration Nigeria will pay through its nose. Arbitration can last for years and the status quo will be maintained. Arbitration will take place overseas and there will be no political interference in the process. More importantly, the negative image such a process will have on a country’s business procedures will be incalculable. A lot of foreign investors shy away from investing in Nigeria primarily because they believe we are not honest in sticking to agreements”.
Speaking in the same vein, Mr Imoke Ameh warned the Federal Government to tread softly on the matter so that the case of Nigerian Liquefied Natural Gas (NLNG) and Nigerian Maritime Administration and Safety Agency (NIMASA) will not repeat itself.
NIMASA had blocked the NLNG channels for failing to pay dues to it. So, NLNG went to court to challenge the action and the court awarded NLNG damages which NIMASA is yet to redeem. So, it is against this backdrop that Ameh is warning the government.
But, Special Assistant to the president of National Association of Customs Licensed Agents (ANLCA), Mr. Pius Ujubuonu, did not rule out political interest in the saga. He however, added that the agreement, ab initio, was shobbily done.
Also, the Director General of ANLCA, Mr Joel Nwosu agreed that the government’s action was in order. But he advised the two parties to go back to the drawing board.
Speaking to newsmen at the end of NPA’s management meeting with stakeholders in Warri, Delta State, the Managing Director of NPA, Ms Hadiza Bala Usman dispelled the rumour that Intels’ sanction was part of President Muhammadu Buhari’s political vendetta against the erstwhile vice president, saying that it was purely an administrative decision.
According to a top official of Intels, although Atiku has the least shareholding interest in the company, the authorities believe he is the principal stakeholder in Intels.
He said that Mr Gabrieli Ivovi is the major investor in the company and that the impression that Atiku is the owner of the firm has led to the suspension of their concession by the administration of President Olusegun Obasanjo. But when they discovered the truth the suspension was lifted.
“Atiku is the least investor. We have heard that story but we are not dwelling on it” he said.
Recall that Intels is a terminal operator and concessionaire of Onne Port, Rivers State. To ensure safe passage of ships within Nigeria’s seaports, NPA, through Intels as its agent, provides pilotage services to guide ships in and out of the ports. The rule of thumb in the maritime industry is that pilotage is compulsory for all ships of 35 metres overall length unless a ship master comes with a valid Pilotage Exemption Certificate.
In return for the pilotage service, ship owners/companies are required to pay a pilotage fee, which Intels collects on NPA’s behalf. When NPA was collecting the fees, there were allegations of inefficiencies and leakages to the effect that only $6.5 million were collected yearly.
In 1998 Intels was engaged to handle the collection and monitoring of ships on the Nigerian waterways.
But when Intels started handling the collection and monitoring services, the collection fees increased from $6.5 million to $200 million.
He said that Intels was ready for amicable resolution but instead of this, NPA decided to terminate the contract. Intels, he said, has invested over $1 billion in the business and the termination of the contract will send wrong signals to prospective investors.
He feared that if NPA does not rescind its decision, some of the banks might go into extinction because they granted Intels loan because of the contract with NPA.