INTELS waived $193m debt to resolve service boat contract — NPA 

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

The NPA insisted that the agreement reached with INTELS was done in national interest, adding that revenue generation will increase as a result of the effort.

The NPA also praised the Minister of Marine and Blue Economy, Adegbeyega Oyetola for working to ensure that the crisis is resolved.

Oyetola, the NPA said, was disheartened by the needless loss of revenue as a result of the impasse, adding that the minister showed concern and patriotism in resolving the dispute.

The agency said Nigeria will save $326.895 million from the agreement it reached with INTELS on the contentious pilotage contract.

It stated that the Federal Government will earn a benefit to the tune of over $500,000,000, – taking into consideration the interest waiver of $193,317,556; the reduction in interest rate on the outstanding debt from six-months LIBOR rate + 6.5 percent to six-months SOFR rate + three percent, 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 percent to 24.5 percent.

In a statement tagged, ‘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 decried the 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.

“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,” the NPA said.