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Nigeria to save $326.895m from agreement with INTELS on contentious pilotage contract
The Nigerian Ports Authority (NPA) has explained how INTELS Nigeria Limited waived $193 million as part of deliberate and conscious effort to resolve the stalemate on the pilotage contract with the federal government.
The NPA said that the agreement that culminated in the waiver of the $193,317,556 accumulated interest on debt owed, which was reached with INTELS was done in the national interest.
It assured stakeholders and Nigerians that revenue generation would now increase as a result of the effort, even as it praised the Minister of Transportation, Marine and Blue Economy, Adegboyega Oyetola, for working tirelessly to ensure that the crisis was resolved.
The Authority pointed out that the minister was disheartened by the needless loss of revenue as a result of the stalemate on the pilotage contract, adding that the minister’s show of concern underscored his commitment and patriotism towards resolving the protracted dispute.
Significantly, the NPA disclosed that Nigeria would save a princely $326.895 million from the agreement it reached with INTELS on the contentious pilotage contract.
The Authority said the federal government would earn a benefit to the tune of over $500,000,000.00 – taking into consideration the interest waiver of $193,317,556.
The arrangement also included the reduction in interest rate on the outstanding debt from 6-months LIBOR rate + 6.5 per cent to 6-months SOFR rate + 3 per cent, the spread of the repayment of the debt over 15 years, with the first two years interest-free and the reduction in commission from 28 per cent to 24.5 per cent.
The NPA said, in a statement entitled: “Setting the Record Straight in Respect of Service Boat Monitoring Operation in Nigerian Ports Authority: Reinstatement of INTELS Nigeria Limited as Management Agent,” that there was misinterpretation in a section of the media, citing a letter issued by the Port Manager, Lagos Port Complex, Apapa and addressed to Shipping Companies on the matter.
The Autority said that “It is has become necessary to put the record straight for the benefit of the public and the generality of stakeholders in the Port industry.
“This is also to avoid distortions and conjectures, which may arise by reason of wrong interpretation of the aforementioned letter.”
The NPA said it agreed a waiver of the sum of $100,000,000 being part of the accrued interest as of 31st July, 2023 on the indebtedness to Deep Offshore Services Limited under the Phase 4B agreement.
According to the Authority: “A further waiver of the interest accruing on the outstanding debt under the Phase 4B Agreement for the period of two years commencing from 1st of July 2023 and ending on the 30th of July, 2023 which is estimated in the sum of $93,317,556.
“Reduction of the interest rate on the indebtedness to Deep Offshore Services Limited from 6-months LIBOR rate + 6.5% to 6-months SOFR rate + 3% effective from the date of execution of Supplemental Agreement. The Authority will be saving a total sum of US$ 326,895,226 as a result of waiver of part of accrued interest and reduction of interest rate from 6.5% to 3% on the debt over the next 15 years.
“Reduction of the agency commission on Pilotage collections from 28% to a lower commission of 24.5% as opposed to increasing it due to astronomical rise in cost of operations. The proposed spread of the debt of $522,433,453.25 to be paid back over a 15-year period will, of itself, earn for the Authority a huge benefit in terms of preservation of funds to meet its other operational needs over the period.”
The NPA stated that the above facts represented the true position on the matter, adding that, “The interest of the authority is to ensure that services are provided in line with international best practices and to enhance the revenue profile of the federal government. In order to mitigate the attendant loss of revenue and surmount the legal impasse created by the dispute, the authority proposed a settlement initiative with INTELS, which was submitted to the to the federal government through the Ministry of Transportation.
“Intels also made proposal for settlement on behalf of itself and Deep Offshore Services Nigeria Limited. Protracted negotiations followed and the parties eventually reached a settlement following remarkable concessions by Intels/Deep Offshore and verifiable gains by NPA/the federal government.
“The parties agreed to the following proposed Terms of Settlement; waiver of the sum of $100,000,000.00 on the outstanding indebtedness of the authority to Deep Offshore Services Limited, a further waiver of interest which may accrue on the outstanding debt to Deep Offshore Services Limited over a period of two years between 1st of July, 2023 to 30th June, 2025 which is estimated in the sum of $93,317,556, reduction of interest rate on the outstanding indebtedness to Deep Offshore Services Limited from Libor+6.5 per cent to SOFR+3 per cent, reduction of the agency commission on Service Boat Pilotage collections from 28 per cent to 24.5%. The agreement to be renewed for a further period of 15.”
The NPA added that the federal government considered the proposal and approved the same on the 18th of August, 2023.
“The federal government further directed that the withdrawal of the cases was to be carried out by filing Terms of Settlement by the parties and for the Court to adopt same as Judgment of the Court. The authority was also to discontinue the un-concluded procurement process, which process was in dis-obedience to the Orders of the Federal High Court, Lagos.
“The Parties executed Terms of Settlement on the 24th of August, 2023, and same was adopted as the Judgment of the Federal High Court in Suit No. FHC/L/CS/1058/2020 on the 21st of September, 2023 by Honourable Justice A.M. Liman. Arising from the foregoing, the authority also filed a Notice of Withdrawal at the Court of Appeal, Lagos in respect of the appeal at the Court of Appeal, Lagos.
“Following the Judgment of the Federal High Court, Lagos, the Nigerian Ports Authority and Intels Nigeria Limited executed the managing agency agreement, while a Supplemental Agreement with Deep Offshore Services Limited for the Phase 4B Port Development was also executed in view of the fact that the initial Agreement was suspended.”
The NPA further stated that the federal government lost humongous revenue in the period the NPA took over the management of pilotage.
According to the NPA, “After the expiration of the Service Boat Management Agreement, the authority took over the performance of the service through various Departments and Divisions. However, due to the constraint of not having the requisite technology to monitor the operations, the expected revenue dwindled and it resulted in the drastic reduction of revenue generation for the Authority.
“An analysis of its impact on the authority’s revenue showed a sharp decline from $216million and $209 million in 2014 and 2015 respectively under INTELS agency to $130 million and $99 million in 2020 and 2021 respectively after take over by NPA. The situation in 2023 is even worse as the collection up to June 2023 was only $55.3 million.”
While admitting that errors were made by the past management of the NPA, it stated, “Prior to the expiration of the Service Boat Monitoring Agreement, the authority commenced the procurement process for the engagement of Service Boat Operations Monitoring Agents.
“Several companies submitted bids and the Parastatal Tenders Board of the authority considered the proposals and approved to forward the Four Nos. companies considered qualified for the next stage of the process, to the Ministerial Tenders Board for further procurement processes in line with the requirement of the Public Procurement Act. The Four companies are; Pacific Silverline Limited, Nexttee Oil and Gas Trading Company Nigeria Limited, ICA Logistics Limited and Ishasha Investments Limited.
“Shortly after the opening of the bids, Intels Nigeria Limited and Deep Offshore Services Limited instituted a suit no FHC/CS/L/1058/2020 at the Federal High Court, Lagos against the Authority seeking orders of the Court to restrain the authority from engaging new Service Providers to carry out the monitoring of Service Boat Operations in the Exclusive Economic Zone.
“Intels further claimed that the authority was in breach of the management agreement and sought reliefs including that the contractual status quo remains. Deep Offshore claimed that the termination of the Managing Agency Agreement will negatively affect process of recovery of the Project cost from the Authority.
“The Federal High Court, Lagos per Justice Oweibo by an Order of Interim Injunction dated 24th July, 2020 restrained the authority from giving effect to the Public Notice calling for Expression of Interest for the provision of the Service Boat Operation from interested entities in line with the Procurement Act.”
It added, “The authority notified Intels Nigeria Limited vide its letter dated 5th August, 2020 of the expiration of the Service Boat Management Agreement on the 8th of August, 2020 and of its intention to take over the provision of the said Service Boat Operation. A Public Notice was equally issued to all Service Boat Operators requesting them to deal with the various Port Management on all Service Boat issues. Intels Nigeria Limited again approached the Federal High Court, Lagos in suit no. FHC/L/CS/1058/2020 requesting for an Order of the Court to restrain the Authority from giving effect to the Notice of Expiration served on Intels.
“At the Federal High Court, Lagos Coram Hon. Justice Aikawa granted an Ex parte Order of Interim Injunction on the 28th August, 2020 restraining the authority from giving effect to the Notice of expiration of the Agreement pending the determination of the arbitration between the parties.
“By another application dated the 18th of September, 2020, the Authority challenged the jurisdiction of the Court to entertain the suit without first issuing and serving on the authority the mandatory pre-action Notice as provided in the Nigerian Ports Authority Act. The Federal High Court, Lagos Coram Oweibo J., notwithstanding the above objection extended the lifespan of the Interim Injunction and thereafter referred the matter to Arbitration.”
The NPA said that the orders of the Federal High Court should have effectively stalled the Procurement process adding, “However, despite the orders of the Court, the authority continued with the procurement process and forwarded the names of the companies to the Federal Ministry of Transportation. The procurement process was subsequently put on hold based on the advice from the Federal Ministry of Transportation that the authority should comply with the orders of Court.
“The authority was thereafter sued by Pacific Silverline Limited, Nexttee Oil and Gas Trading Company Nigeria Limited, ICA Logistics Limited and Ishasha Investments Limited at the Federal High Court, Lagos in suit No. FHC/L/CS/1772/2022 seeking declarative reliefs and an injunction restraining the Authority and the Honourable Attorney General of the Federation from awarding the contract for the Service Boat Operations Monitoring contract in the four pilotage districts to any other entity other than one which participated fully in the procurement process.
“The Federal High Court on the 11th of July, 2023 upheld the objection of the authority and struck out the suit. The claimants have since filed an appeal at the Court of Appeal against the ruling of the Federal High Court and also applied for an injunction to restrain the Authority from executing the ruling of the Court. The appeal is pending at the Court of Appeal, Lagos and no date has been fixed for the hearing of same.
“Messrs Pacific Silverline Limited recently filed another suit at the Federal High Court, Kano in suit no. FHC/KN/CS/245/2023 against the Honourable Attorney General of the Federation challenging the approval granted the authority to settle the cases between the Authority and Intels Nigeria Limited. The Federal High Court wholly dismissed the said suit on the 30th of November, 2023.”
It continued: “In order to mitigate the attendant loss of revenue and surmount the legal impasse created by the dispute, the authority proposed a settlement initiative with INTELS which was submitted to the federal government through the Ministry of Transportation. Intels also made proposal for settlement on behalf of itself and Deep Offshore Services Nigeria Limited. Protracted negotiations followed and the parties eventually reached a settlement following remarkable concessions by Intels/Deep Offshore and verifiable gains by NPA/the federal government.”
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Obongemem Ekperikpe Ekpo, on Saturday commended the Nigerian Content Development and Monitoring Board (NCDMB) for demonstrating that Local Content Policy could be a force for transforming lives and creating socio-economic value through community-focused interventions.
Speaking at the commissioning of a state-of-the-art Information and Communication Technology (ICT) Centre at IkaComprehensive High School, Ikot Akpan Anwa, Akwa Ibom State, the Minister said such a strategic investment in the area, with vast possibilities for research and online learning through diverse educational platforms, would bolster human capital development, digital literacy and sustainable community development.
The ICT Centre, built and equipped by the NCDMB, comprises a modern computer laboratory with 50 networked desktop workstations, an interactive smart board, projector, server room and Starlink high-speed Internet connectivity to support digital learning, research and computer-based examinations. Designed to accommodate up to 70 users, the facility also features air-conditioned learning spaces, a staff room, store and separate convenience facilities. Power reliability is supported by a 15kVA generator and a 15kVA solar power system with battery backup, complemented by a dedicated network infrastructure for seamless connectivity.
“This ICT Centre,” according to the Minister, “is far more than a building equipped with computers; it is an investment in the future of our children and a gateway to knowledge, innovation, creativity and opportunity.” Continuing, he noted that, “Nations that invest in the digital education of their young people today are the ones that will lead the world tomorrow.”
He said the initiative of the Board aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu by advancing access to quality education, youth empowerment, digital transformation and inclusive economic growth, as young Nigerians in rural communities acquire relevant digital skills and competencies to participate effectively in a technology-driven economy.
Representing the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, the Director, Corporate Services, Dr. Abdulmalik Halilu, stated that digital literacy and ICT capacity development remain a key component of the Board’s human capital development mandate aimed at building a skilled workforce for the Nigerian oil and gas industry and the broader economy. He noted that the facility would provide students with access to digital learning, research tools, artificial intelligence and global knowledge resources.
“This ICT Centre is more than a building; it is an investment in the future of our young people,” he stated, adding, “It represents our commitment to extending Nigerian Content objectives beyond industry into classrooms, where innovation, technology and skills development can empower the next generation.”
Halilu stressed that the project’s long-term success depends on collaboration among the Board, the school and the host community. He urged the community to take ownership of the facility and ensure its proper maintenance and sustainability for future generations.
“Our expectation is not simply to hand over a facility but to see measurable outcomes in the lives of the students who will use it. We therefore call on the school and the host community to safeguard this centre and ensure it continues to deliver value for many years to come.” He added.
Speaking on behalf of the project delivery team, the Managing Director of Standard Institute of Technology Limited, Engr. Alexander Nsidibe, expressed appreciation to NCDMB for the confidence placed in the company to deliver the project. He described the ICT Centre as a demonstration of the Board’s commitment to quality infrastructure development and human capital advancement. He pledged the company’s continued support for the facility’s maintenance for one year after handover, noting that the Centre would enhance students’ digital competencies and prepare them for productive life in industry.
In her welcome address, the Principal General of IkaComprehensive High School, Mrs. Nkom John Umoette, described the ICT Centre as a transformative intervention that would bridge existing digital access gaps. She noted that the school lacked an ICT facility, which constrained students’ exposure to digital learning and computer-based education.
She expressed appreciation to Rt. Hon. Ekpo and the NCDMB for making the project a reality, stating that the facility would equip students with essential digital skills, improve their preparedness for computer-based examinations, and create greater opportunities for academic excellence and future careers.
A representative of the community commended the Minister and the NCDMB for the delivery of the ICT Centre, noting that the facility would significantly improve access to digital learning and computer-based examinations. He recalled that students previously travelled to Uyo and neighbouring communities to register for and take examinations such as JAMB, incurring additional costs and facing logistical challenges.
Many students are reportedly trapped even as rescue operation is ongoing in Oko community in Orumba North Local Government Area of Anambra State where a private student hostel reportedly collapsed Sunday night.
Several occupants are feared trapped beneath the rubble of the three-storey building identified as Elite Five Star Lodge collapsed at Amokpala, Oko.
Eyewitnesses said a loud bang was heard moments before the multi-storey building gave way, sending students and residents rushing to the scene in confusion and fear.
“We heard a loud bang, and within seconds people were screaming for help. Everyone rushed out to see what had happened,” an eyewitness said.
Videos and photos circulating on social media showed a large crowd gathered around the collapsed structure as residents, students and emergency responders launched frantic rescue efforts. Local volunteers were also seen assisting in clearing debris in a bid to locate survivors.
Rescue operations ongoing – Police
The Anambra State Police command confirmed the incident in a statement Monday morning saying a coordinated rescue operation was underway.
The building, located beside Tonimas Filling Station, caved in on July 26, prompting an immediate emergency response from the Anambra State Police Command and other security agencies.
The statement issued by the Police Public Relations Officer, SP Tochukwu Ikenga, said the Police-led joint security team swiftly mobilised to the scene upon receiving a distress call adding that the area was secured to prevent further danger while rescue efforts commenced in collaboration with relevant emergency responders.
According to the statement, personnel of the Anambra State Fire Service and the Anambra State Emergency Management Agency (SEMA) joined the operation to assist in searching for survivors and evacuating victims from the debris.
The police command disclosed that some injured occupants have already been rescued and taken to a hospital in Oko, where they are receiving medical treatment.
However, rescue operations are still in progress, and authorities said the number of casualties or persons trapped could not yet be confirmed.
The command appealed to residents and members of the public to remain calm, refrain from spreading unverified information, and stay away from the disaster site to enable emergency personnel carry out their duties without obstruction.
Ikenga assured that further updates would be provided as more verified information becomes available.
President Bola Tinubu has declined to receive a special envoy dispatched by South African President Cyril Ramaphosa amid growing concerns over persistent xenophobic attacks against Nigerians in South Africa.
The South African delegation, led by Minister of International Relations and Cooperation, Ronald Lamola, arrived in Abuja on Friday, July 24, with what was described as a “very important message” for the Nigerian leader.
The development comes less than 24 hours after the reported killing of a Nigerian national, Chika Ibe, who was allegedly picked up from his residence at Parksig Villas Complex in Bellville, Cape Town, and tortured to death by personnel of the South African Police Service (SAPS).
Nigeria has maintained a firm stance against xenophobic attacks in South Africa. At the 69th Ordinary Session of the Authority of Heads of State and Government of ECOWAS in Lungi, Sierra Leone, Vice President Kashim Shettima, who represented President Tinubu, condemned the attacks and pledged that Nigeria would push for stronger measures against xenophobia at the African Union.
Speaking on the recurring Afrophobic attacks targeting African nationals in South Africa, Shettima called for a united continental response to protect the rights and dignity of Africans living across the continent.
He disclosed that the Federal Government had evacuated 1,490 Nigerians affected by previous xenophobic violence and reaffirmed Nigeria’s commitment to working with regional and continental institutions to address the crisis.
Diplomatic sources disclosed that Nigeria’s Minister of Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, advised that it was not an appropriate time for President Tinubu to receive the South African envoy, citing the continued attacks on Nigerians, their businesses and properties in South Africa.
According to the sources, the Foreign Affairs Minister stressed that the South African delegation could not secure an audience with the President without a prior appointment and concrete commitments from Pretoria.
She was also said to have insisted that South Africa must present a signed copy of the Memorandum of Understanding on the Early Warning Mechanism (EWM), which both countries signed in Abuja on October 22 last year, before further diplomatic engagement can proceed.
South Africa has reportedly failed to ratify the agreement, citing what Nigerian officials described as inadequate reasons.
The Early Warning Mechanism was designed to strengthen cooperation between both countries in monitoring threats of violence, protecting citizens, and addressing consular matters.
It also provides for rapid communication channels to de-escalate security risks involving foreign nationals and to prevent criminal acts, reprisals and xenophobic attacks against citizens of either country.
Officials at the Ministry of Foreign Affairs noted that the framework could have facilitated compensation claims for Nigerians whose businesses and properties were destroyed during xenophobic attacks in South Africa.
However, South African authorities have so far declined to compensate victims of the attacks.
Presidency sources said that as of the time of filing this report, President Tinubu had yet to agree to meet the South African envoy. The outcome of a telephone conversation reportedly initiated by President Ramaphosa over the weekend also remained unclear.
Observers believe South Africa’s diplomatic outreach may be driven by concerns over the potential impact of deteriorating relations on South African investments and businesses operating in Nigeria, as well as Nigeria’s growing campaign for tougher continental measures against xenophobia and Afrophobic attacks.
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