- The details of the transaction involving the Nigerian Ports Authority (NPA) and Intels Nigeria Limited have been revealed.
- According to a memo released, the new agreement will benefit both the NPA and the government
- In addition, there will also be a reduction in interest rates on the outstanding debt and other benefits
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Following a report that the federal government resumed a contract with a former company owned by Atiku Abubakar, the details of the transactions have emerged.
The deal involves the Nigerian Ports Authority (NPA) and Intels Nigeria Limited and was extended based on presidential directives and court consent judgment.
This is against the termination of the boat operation contract in 2020. The earlier directive three years ago prompted all service boat owners and operators to do transactions directly in each port complex of the NPA in 2020.
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Premium Times reported that the new agreement was contained in a memo released by the NPA titled 'Reinstatement of Intels Nigeria Limited as the authority's service boat operations monitoring provider in the pilotage district.'
According to the agreement's details, the concessions made by Intels and Deep Offshore will benefit the NPA and the government by over US$ 500,000,000.00.
These benefits include a reduction in interest rates on the outstanding debt, a waiver of interest on accrued interest for an additional two years until 2025, a spread-out repayment of the deficit over 15 years with interest-free years during the first two years, and a decrease in agency commission from 28% to 24.5%.
NPA noted that the move will improve revenue generation from Service Boat Operations in line with the party's objectives.
Breakdown of the directive
The document noted $100 million will be waivered as part of the interest accrued as of July 2023 on the indebtedness to Deep Offshore Services Limited under the Phase 4B Agreement.
In addition, for two years, from July 1, 2023, to June 30, 2025, the interest accumulated on outstanding debt under the Phase 4B Agreement amounting to S$93 million will be waived.
The parties also decided to spread the debt repayment over 15 years, with interest-free payments for the first two years.
Every income that Intels Nigeria Limited collects must go into the NPA's allocated TSA account at the Central Bank of Nigeria.
By filing the settlement reached by the parties in court to be adopted as a court judgment, the parties agreed to end all litigation initiated by Intels and Deep Offshore regarding NPA Public Tender No.4115.
It also expressed interest in appointing a Managing Agent for NPA's four pilotage Districts in the Exclusive Economic Zone.
The agreement partly reads:
“This will afford additional legal protection for the Authority against any other claims by those who have not been awarded any service Boat contract. A procuring entity (in this case NPA) also has the legal power to discontinue any unconcluded procurement process under the Public Procurement Act."
Did Tinubu buy Atiku's $100m Intels shares? Presidency opens up
In a statement issued on Sunday, December 3, the presidency explained in detail the termination of contracts between the Nigerian Ports Authority (NPA) and Integrated Logistic Services Nigeria Limited (INTEL Nigeria Limited) in 2020.
According to the presidency, the contract was terminated due to Nigeria's annual revenue, which dropped from over $200 million to around $50 million after the termination.
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