Nigeria to save $326.89m from agreement with INTEL – NPA

Nigerian Ports Authority (NPA) has disclosed that the country would save a whopping $326.8 million, roughly N227.86 billion, from the agreement it reached with INTELS Nigeria Limited on the contentious pilotage contract.

On the whole, NPA said the federal government would further earn benefits to the tune of over $500 million. It said this was taking into consideration the interest waiver of $193,317,556 and reduction in interest rate on the outstanding debt from six-month London Interbank Offer Rate (LIBOR) + 6.5% to six months Secured Overnight Financing Rate (SOFR) + 3%.

The NPA said that the benefits also involved the spread of the repayment of the debt over 15 years, with the first two years being interest-free, and the reduction in commission from 28% to 24.5%.

In a statement titled, “Setting the Record Straight in Respect of Service Boat Monitoring Operation in Nigerian Ports Authority: Reinstatement of INTELS Nigeria Limited as Management Agent,” 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.

NPA disclosed, “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. “

Giving a breakdown of the agreement, NPA said it agreed to a waiver of $100 million, being part of the accrued interest as at July 31, 2023 on the indebtedness to Deep Offshore Services Limited under the Phase 4B agreement.

The NPA further lauded the Minister of Marine and Blue Economy, Adegboyega Oyetola, for working tirelessly to ensure that the INTELS issue was resolved.

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