Intels Contract Extension Sets Sail for Revenue Revival

In a move aimed at curbing revenue losses and boosting foreign exchange inflow, the Nigerian government has granted an extension to its boat service contract with Intels Nigeria Limited.

The extension follows presidential directives and a court consent judgment obtained by the Nigerian Ports Authority (NPA).

The decision comes after the NPA had initially terminated the boat operation contract in September 2020, instructing all service boat owners to conduct transactions directly at NPA port complexes.

A Federal High Court in Lagos had granted an interim injunction preventing the termination of Intels’ role as a managing agent, responding to a suit filed by Intels and Deep Offshore Service Nigeria Limited.

The court injunction halted the termination pending the resolution of arbitration proceedings.

Following prolonged negotiations, the NPA officially announced the contract extension in a memo addressed to shipping companies. The memo, titled ‘Reinstatement of Intels Nigeria Limited as the authority’s service boat operations monitoring provider in the pilotage district,’ emphasized the aim of bolstering revenue generation from Service Boat Operations, aligning with the federal government’s objectives.

President Bola Tinubu, during a meeting in Dubai, highlighted the strategic initiative as part of Nigeria’s commitment to a sustainable and eco-friendly future. The extension is expected to play a crucial role in reducing Nigeria’s carbon footprint and modernizing transportation systems.

The decision to rehire Intels was reportedly influenced by a construction deal struck between NPA and Intels concerning the Onne Port.

Sources suggested that Intels had agreed to construct the port, financing it with revenue generated from the boat contract with NPA.

After the termination in 2020, Nigeria faced significant revenue losses, prompting a reevaluation of the boat service contract.

The resolution reflects a renewed effort by the Nigerian government to address revenue leakages and ensure the country benefits from strategic agreements. However, details of the court consent judgment are yet to be clarified.

Source: Premium Times