Why we terminated pilotage contract with Intels -NPA

Ebun Francis || The Nigeria Ports Authority on Friday explained why it terminated the boat pilotage monitoring and supervisory agreement with Atiku Abubakar’s Intel’s Logistic Limited.

In a statement signed by its general manager, corporate and strategic communications, Abdulahi Goje, NPA said it sought the advise of the AGF after trying for more than one year to get Intel to comply with single treasury account of the federal government.

“The first such correspondence was through a letter written by the former Executive Director, Finance, and Administration, Mr. Olumide Oduntan on June 28, 2016, directing the company to pay all revenues collected on behalf of the NPA into the TSA subaccount at the CBN.

“All further attempts by the Authority to get the company obey this directive was met with various excuses until the Authority wrote to seek the AGF’s legal advice on how to proceed with the NPA/Intels relationship in a letter dated May 31, 2017.

“The legal advice contained in a September 27, 2017, letter addressed to the Managing Director of the Authority, Hajia Hadiza Bala Usman, by the Attorney General of the Federation (AGF) and Minister of Justice, Mallam Abubakar Malami (SAN) expressly stated as follows:

“In the premise of the above, the conflict between the agreement and the TSA policy presents a force majeure event under the agreement, and NPA should forthwith commence the process of issuing the relevant notices to Intels exiting the agreement which indeed was void.”‘For the avoidance of doubt, the agreement for the monitoring and supervision of pilotage districts in the Exclusive Economic Zone of Nigeria on terms inter alia that permits Intels to receive revenue generated in each pilotage district from service boat operations in consideration for 28 per cent of total revenue as commission to Intels is void, being a contract ex facie illegal as formed for permitting Intels to receive federal government revenue contrary to the express provisions of Sections 80(1) and 162(1) and (10) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), which mandates that such revenue must be paid into the Federation Account/Consolidated Revenue Fund.”

The statement said as a responsible agency of the federal government, the NPA had no option but to act as advised.

“The Authority has taken note of threats by Intels to withdraw its investment plans in Nigeria and must point that business thrives in favour of everyone involved only when the laws of the country of operation are adhered to.

“No organisation is above the Nigerian constitution and it is only when all corporate entities obey the laws of the country that everyone benefits. There must be a level playing field for all players in the sector, and this is the commitment of the Authority.”

The statement, however, acknowledged the right of Intels to seek arbitration in the matter but believes its decision will pass the test of Judicial scrutiny.