The Nigerian Ports Authority (NPA) has explained the reason Intels Nigeria Limited waived $193 million as part of deliberate and conscious effort to resolve the stalemate around pilotage contract with the federal government.
The NPA said 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 agency, in a statement, said 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 stated that Nigeria would save a princely $326.895 million from the agreement it reached with INTELS on the contentious pilotage contract.
It 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.
In the 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,” the NPA said 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 authority said, “It 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.”