Nigerian government has directed the Nigerian Ports Authority (NPA) to terminate the boats pilotage monitoring and supervision agreement that the agency has with Intels Nigeria Limited, a company co-owned by former vice president Atiku Abubakar.
Government says the contract with Intels, a leading integrated logistics and facilities services provider in the maritime and oil and gas logistics sectors of the country, was void ab initio.
Attorney General of the Federation (AGF) and Minister of Justice, Mallam Abubakar Malami (SAN), in a letter dated September 27, 2017 to the Managing Director of the NPA, Ms. Hadiza Bala-Usman, said that the agreement, which has allowed Intels to receive revenue on behalf of NPA for 17 years, violates the Nigerian Constitution, especially in view of the implementation of the Treasury Single Account (TSA) policy of government.
Intels, also co-owned by Mr. Gabriel Volpi, an Italian national who also has Nigerian citizenship, will lose several millions of dollars in the cancelled deal.
In the maritime industry, pilotage is compulsory for all ships of 35 metres overall length or greater unless a valid Pilotage Exemption Certificate is held by the ship’s master.
In return for the service, ship owners/companies are required to pay a pilotage fee, which Intels collects on NPA’s behalf and retains 28 per cent of the revenue as commission for the services rendered.