INTELS Waived $193m Debt to Resolve Pilotage Crisis – NPA

Nigerian Ports Authority (NPA), yesterday, stated that INTELS Nigeria Limited waived $193 million as part of efforts to resolve stalemate on pilotage contract with the Federal Government.

The agency explained that the agreement was struck in the spirit of national interest, adding that revenue generation would increase.

It added that government would save $326.895 million from the pact.
NPA added that the current administration would earn over $500 million.
The organisation lauded Minister of Transportation, Marine and Blue Economy, Adegbeyega Oyetola for ensuring that the crisis was resolved.

In a statement titled, “Setting the Record Straight in Respect of Service Boat Monitoring Operation in Nigerian Ports Authority: Reinstatement of INTELS Nigeria Limited as Management Agent,” the agency stated that it had become necessary to put the record straight for benefit of the public and stakeholders .

Dissecting the pact, NPA said it agreed a waiver of $100 million being part of the accrued interest as of July 31, 2023 on the indebtedness to Deep Offshore Services Limited under the Phase 4B agreement.

According to the organisation, a further waiver of interest accruing on outstanding debt for the period of two years commencing from July 1 to 30, 2023, was $93,317,556.

The agency said it will be saving a $326.8 million from waivers and interest rates, ranging between 6.5 per cent and three per cent on the debt over the next 15 years.

“Reduction of the agency’s commission on pilotage collections from 28 per cent to a lower commission of 24.5 per cent, as opposed to increasing it due to astronomical rise in cost of operations. The proposed spread of debt of $522.4 million 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,” it stated.

The ‘facts,’ NPA said, represent true reflection of the matter adding that the interest of the agency was to ensure that services are provided in line with international best practices and enhance the revenue profile of government.

According to the authority, the parties agreed to proposed terms of settlement, including a waiver of $100 million.